Definitions
2013 Return on Investment Study
Return on Investment (ROI): The relationship between the total economic return and the total investment in public libraries.
Total Revenue Investment: The revenues received by the public libraries including federal, state and local funds; fees and fines; cash gifts and donations.
Jobs Supported: The total employment effects based on the econometric simulation estimates. These positions are the direct, indirect and induced effects of public libraries' economic activity.
Cost Per Job Created: Total Revenue Investment divided by the total number of jobs supported.
Total Statewide Impact: Also referred to as Gross Regional Product (GRP). This is an indicator of the economic well-being of an area, measured in terms of the total economic output, or the value of all goods and services produced.
Income Increase Per Dollar Spent: The total amount of personal income generated as an effect of the economic activities of public libraries divided by the Total Revenue Investment.
User Investment: The investment by users in their time, travel, etc., necessary to use public libraries or specific services.
Cost to Use Alternatives: The estimated costs and time to use alternatives to the public libraries should they cease to exist, and should users decide to pursue alternatives.
Total Net Benefits to Users: The added cost to use alternatives to the public library. This is equivalent to the cost to use alternatives minus the user investment.
Community Economic Benefits: These are benefits that flow from public library use, such as library spending with vendors and contractors in the state, as well as revenues generated by vendors and contractors in the library (e.g., copying) and spending that occurs as a result of library use (e.g., restaurants).
Lost Use Benefits: Benefits derived from use that would be lost if the public libraries did not exist.
Economic Return: The results of public library use that can be expressed in economic terms.
