Economic Impact Modeling
METHODOLOGY Economic impact assessments are meant to measure the effects of businesses or industries or other economic events within the bounds of geographies or other entities with identifiable boundaries. Economic impacts can be positive, negative or they can mitigate other impacts be they positive or negative. Economic impact analysis is an important tool that is used by both business and government to make decisions about new projects, capital investments, the historical effects of past development and the potential effects of a new line of business or government project. For this project, the goal was to identify employment outcomes, spending effects and fiscal effects relative to government-based taxes and government expenses incurred or avoided. 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.
The Nationwide Economic Impact of Indian Gaming
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