Analytical Minds

Great universities are often recognized for their groundbreaking research, and in the hallowed halls of our region's schools, professors and students are collaborating on in-depth research projects, some of which analyze business and economic issues on local, national and even international levels.

At Florida Gulf Coast University and International College, projects span industries from agribusiness to tourism. Some begin with a simple query by a student; others are requested by trade groups seeking guidance. They all demonstrate how research is a fundamental piece of the education process, and how companies and municipalities look to experts in academia for such information. And in some cases, the projects further enhance the institutions' connection to the community.

"It brings awareness to our college," says Don Forrer, director of the M.B.A./Master of Public Administration (M.P.A.) program at International College. "We're a small private college that needs to be known. Things like this show the public that we're here."

Here are five recent projects that reflect the diversity of research undertaken at the two schools

Burroughs Home

Background: The Burroughs Home is a turn-of-the-20th-century house located on First Street in downtown Fort Myers. The city wanted to determine the best public use for the home, while maintaining its historical significance. Officials hired FGCU's Regional Economic Research Institute last fall to conduct an economic benchmark assessment, which it completed in six weeks.

Objective: Study how best to manage, fund and use the home.

Methodology: Assess similar facilities in Florida, conduct a financial analysis using data from the American Association of Museums, and interview managers of other historic homes and individuals in Fort Myers for their impressions of the Burroughs Home and of tourism in Lee County.

Findings: The study determined that in most cases, the various cities being studied work with nonprofits to manage and run the homes, and they use a variety of events and activities to financially support the sites. The economic impact analysis found that if the Burroughs Home had a budget at the median level of $365,200 (relative to facilities in those other communities), it would create about four-and-a-half jobs. The impact on businesses near the home was estimated at $330,000, creating an additional three-and-a-half jobs. The study's recommendations included ways to increase its earned, contributed and investment income.

Result: The city followed the recommendation to find a nonprofit group to run the recently renovated landmark, but the group selected (the only one that showed interest) backed out. City officials are again weighing the options, including searching for another nonprofit operator. "[Fort Myers officials] were looking for an independent view of the funding and potential use," says institute director Gary Jackson. "We were seen as being able to go out and basically gather the facts and provide good information."

Citrus Tariff

Background: International College M.B.A. student Yvonne Puente wanted to research how removal of the tariff on imported citrus might affect her friends and family members who worked in the groves.

Objective: To determine how a tariff elimination or reduction might affect Florida and its citrus industry.

Methodology: Examine the tariff and the competition from Brazilian producers, as well as the history of citrus on a global scale.

Findings: The study found that the elimination of the tariff could harm Florida's citrus industry and the state's economy. Brazilian orange juice could flood the market, which might create prices lower than Florida growers' production costs. As a result, smaller growers might have difficulty staying in business, and there would be no guarantee of larger companies' long-term survival.

Result: Joseph Heinzman Jr., a professor of business administration at International College, says they hit a dead end in Puente's quest to determine the effect on her family and friends because they were unable to find solid data breaking down the numbers of migratory and non-migratory workers. "We couldn't find reliable data to let them know if people are transitory or not," Heinzman says.

Save Our Homes Portability Amendment

Background: Florida's Save Our Homes legislation protects taxpayers from property tax bills rising more than 3 percent annually, but it also has prompted many residents to stay in their current residences for fear that a move would mean much higher taxes. The Florida Association of Realtors hired FGCU's Regional Economic Research Institute to conduct an economic study of a proposed Save Our Homes portability amendment, which was expected to reduce the "lock-in" effect that makes some tax-wary homeowners reluctant to move. The bill (HJR 33) would have allowed a homesteaded property owner to transfer all or part of the difference between his current home's market value and the lower taxable assessment to a new home within one year (as long as the assessed value of the new home were equal to or higher than the previous home).

Objective: To understand the economic implications of the proposed legislation and its impact of "lock-in" and "portability" on homeowners and property tax revenues.

Methodology: Examine what happened in other states, such as California, which has passed several portability amendments with restrictions; explore the potential impact on 10 counties in Florida; and conduct an economic analysis based on likely scenarios.

Findings: The study's findings led to several potential restrictions and modifications: limit the bill to homeowners 55 and up; limit transfers to moves within the same county; allow two years to sell, purchase and build, and transfer the reduced assessment value; and limit the use of portability to once per lifetime. Florida's potential reduction of property tax revenues would range from $421.4 million to $852.8 million in 2010 and from $1.03 billion to $4.26 billion in 2020.

Result: The Florida Association of Realtors voted to support the portability amendment, but only if the counties had the authority to make the decision, as opposed to approval that would be effective statewide.

Drug Prices

Background: Two years ago, Aysegul Timur was among a group of doctoral students who visited France to study the nation's healthcare system and compare it to other European and U.S. systems. The research is part of Timur's dissertation at the University of South Florida.

Objective: To examine the prices in Spain, which Timur, an associate professor of business administration at International College, says has the reputation of being a low-priced drug market.

Methodology: Take government data and use an econometric model to measure pharmaceutical prices over the years.

Findings: Timur found that Spain's universal healthcare system, which means the government is the only buyer, creates a single-price market. Because the market is heavily regulated by the government, prices are much lower than elsewhere.To stay in the market, companies are trying to negotiate at some level with the government so they can make a profit to innovate new drugs.

Result: Her first paper was presented at an international conference in Istanbul. Now she's looking at price convergence in the European Union and making a comparison to U.S. prices. Timur has been conducting the research while teaching at International College; she commutes to Tampa's University of South Florida to work on her doctorate. Both schools helped fund the research project.

Manatee Protection

Background: After a 2001 federal moratorium on single-family dock building in Cape Coral in response to a lawsuit by environmental groups to protect the manatees, five classes in International College's master's program examined the issue from varied points of view. Business students, for example, considered the manatee's impact on the local economy.

Objective: To weigh the argument that the dock moratorium would "kill the economy in Lee County," says Forrer.

Methodology: Conduct surveys of marine-related businesses and analyze home sales.

Findings: No noticeable economic impact was discovered. The statistics failed to show a slowdown of growth in Lee County. The moratorium did, however, hurt the dock-building business, partly because of uncertainty among workers and homeowners. The study found a loss of approximately 18 jobs as a result of the direct, indirect and induced effects of limiting marine construction.

Result: The students presented their findings to about 150 people from the community, and the research was published in early 2004. (The book, The Manatee vs. The Local Economy, is available at www.amazon.com and the Barnes & Noble Web site.) Forrer says one of the biggest results was the spotlight placed on the students. They had to publicly defend their research to dock builders, city officials and environmental activists, all of whom wanted the findings to back up their own claims. "All were hoping the academic side would say, 'Wow, there's a big problem here,'" he says.