DIRECT, INDIRECT & INDUCED IMPACT As briefly noted above, economic impacts can be direct, indirect or induced. Direct impacts are generally the most obvious such as direct payroll or purchases or taxes paid. Indirect impacts are those generally associated with new business to suppliers of products or services; this new demand is in effect a multiplier on the original capital investment and the ongoing operations of the business being analyzed. Where direct and indirect positive economic impacts, there are positive wealth effects in those communities and industries that are in economic sphere of the growing enterprise and these are the induced effects. The total economic impact aggregates the direct, indirect and induced impacts into one analysis. MULTIPLIER IMPACT Estimations of indirect and induced impacts were prepared using the IMPLAN economic model originally developed for the USDA Forest Service in cooperation with the Federal Emergency Management Agency and the USDA Bureau of Land Management. The IMPLAN model was first developed in 1984 by MIG, Inc., and now known as The IMPLAN Group, LLC. The model uses as a primary foundation the US Department of Commerce Input-Output tables, which were first developed in the 1970s.
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