Difference between revisions of "Economic Impact Analysis"
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| − | + | '''Economic Impact Analysis''' is a methodology used to measure the effects of a project, policy or program on the economy. This can include factors such as jobs, income, productivity and competitiveness. EIA is often used in conjunction with other forms of analysis, such as benefit-cost analysis and financial feasibility. | |
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| + | Economic impact analyses usually employ one of two methods for determining impacts. The first is an input-output model (I/O model) for analyzing the regional economy. These models rely on inter-industry data to determine how effects in one industry will impact other sectors. In addition, I/O models also estimate the share of each industry's purchases that are supplied by local firms (versus those outside the study area). Based on this data, multipliers are calculated and used to estimate economic impacts. Examples of I/O models used for economic impact analyses are IMPLAN, RIMS-II, Chmura, and Emsi. | ||
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| + | Another method used for economic impact analyses are economic simulation models. These are more complex econometric and general equilibrium models. They account for everything the I/O model does, plus they forecast the impacts caused by future economic and demographic changes. One such an example is the REMI Model | ||
Revision as of 18:32, 14 June 2022
Economic Impact Analysis is a methodology used to measure the effects of a project, policy or program on the economy. This can include factors such as jobs, income, productivity and competitiveness. EIA is often used in conjunction with other forms of analysis, such as benefit-cost analysis and financial feasibility.
Economic impact analyses usually employ one of two methods for determining impacts. The first is an input-output model (I/O model) for analyzing the regional economy. These models rely on inter-industry data to determine how effects in one industry will impact other sectors. In addition, I/O models also estimate the share of each industry's purchases that are supplied by local firms (versus those outside the study area). Based on this data, multipliers are calculated and used to estimate economic impacts. Examples of I/O models used for economic impact analyses are IMPLAN, RIMS-II, Chmura, and Emsi.
Another method used for economic impact analyses are economic simulation models. These are more complex econometric and general equilibrium models. They account for everything the I/O model does, plus they forecast the impacts caused by future economic and demographic changes. One such an example is the REMI Model
See Also
Direct Economic Impact
Economic Impact Assessment (EIA)
Business Impact Analysis (BIA)
Total Economic Value (TEV)