Most economic impact multipliers are derived from a detailed input-output model of a regional economy that maps the various spending flows between firms, households, and governments. 24 It is important to note that economic multipliers in this report represent estimates of gross economic effects and do not account for any public or private costs associated with the aerospace sector. Employment multipliers provide an estimate of the number of jobs generated in the Greater Oklahoma City regional economy as new jobs are added in the aerospace sector. Similarly, labor income multipliers provide an estimate of the amount of additional household earnings generated in the broader economy per new dollar of labor income received by aerospace employees. Output multipliers provide an estimate of the change in output in the Greater Oklahoma City area economy per dollar of new output (or revenue) generated within the aerospace industry. In interpreting multipliers, a given change in economic activity taking place within the aerospace industry is deemed the direct effect. Direct effects include employment, labor income, and output of goods and services generated directly by aerospace firms and their employees in the Greater Oklahoma City region. The direct effect, in turn, produces both indirect and induced spillover effects which are estimated using multipliers. The indirect effects are the employment, income, and goods and services generated as a result of aerospace establishments making purchases from firms in other industries within the region. The induced effects describe the economic activity generated by new household spending resulting from compensation generated from both the direct and indirect effects. The key mechanism behind the spillover effects are purchases made by aerospace establishments from other businesses in the region and the spending of earned income within the region by aerospace workers. The direct, indirect, and induced effects provide a convenient way of describing the overall multiplier effects that occur as establishments in the aerospace industry produce goods and services (direct effects), then impact those firms that support and supply the sector (indirect effects), and then finally impact the broader regional economy as worker’s incomes and spending patterns are affected (induced effects).
24 State- and region-level multipliers are typically estimated by adjusting, or regionalizing, national purchasing patterns for a given industry sector such that they better reflect the actual economic flows within the states.
Greater OKC Region Aerospace and Aviation - 2025
75
Made with FlippingBook - professional solution for displaying marketing and sales documents online