Tuesday, October 20, 2009

Economic Impact Analysis

Economic impact analysis measures the cumulative effects of how the economy responds to an initial impact, such as a capital-intensive project or a natural disaster. Economic impact analysis is also useful for identifying the contributions of existing economic sectors, such as healthcare or agriculture, to the rest of the economy. Impacts are measured in terms of gross spending, employment and income for a study area, such as an individual county, or a group of counties, or the entire state. Public policy analysts, elected-officials, and regional decision makers often use this information to assess the priority of new projects, to measure the extent of adverse natural and human-induced impacts, and to identify the direction and level of public funding.