MULTIPLIER AND TOTAL IMPACTS This analysis employs an input/output modeling structure, focusing on three primary types of multipliers: Employment, Income, and Output. Employment multipliers gauge the total change in the number of jobs across associated employment sectors for each direct job or unit volume in payroll generated by the primary subject of the analysis. Income multipliers quantify the total dollar- valued change in the income or earnings of households employed by all industries for each dollar of payroll expended by the primary subject of the analysis. Output multipliers delineate the total dollar change across all industries resulting from a dollar change in output delivered to final demand by the subject of the analysis. These multipliers are influenced by factors such as technology, geography, inter-industry linkages, and localization. An input/output model offers a comprehensive view of the economy, illustrating the transactions between sectors of the economy within a given time frame. It categorizes the activities of economic agents (industry, government, households) into various production sectors, measuring transactions in terms of dollars. The multiplier effect, or ripple effect, manifests as each round of inter-industry purchases generates diminishing local effects until all the money initially spent leaks out of the region.
How it works: Indian casinos purchases paper from the office supply store, the office supply store purchases employee uniforms from a local clothing store, the clothing store pays a local cleaning service to clean the store, and so on. Each round of inter-industry purchases generates fewer local effects until all the money originally spent leaks out of the region. Local labor purchases operate similarly, with workers spending their incomes on various goods and services, contributing to the local economy’s vitality. The total economic impact is the sum of the direct, indirect, and induced effects. Estimates of indirect and induced impacts were conducted by Dupris Consulting Group , utilizing multipliers from the Regional Input/output Modeling System (RIMS II) maintained by the U.S. Department of Commerce’s Bureau of Economic Research, as well as the IMPLAN software package. These multipliers are mathematically derived from empirical data specific to geographies, industries, and other attributes of economic systems.
31 INDIAN GAMING - ANNUAL REPORT 2024
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