ERIC Number: ED252357
Record Type: RIE
Publication Date: 1980-Apr
Reference Count: 0
What Does the Impact Statement Say About Economic Impacts? Coping With Growth.
Faas, Ronald C.
Local public officials may be confronted with the use of economic multipliers when asked to react to project proposals, to environmental impact statements, or to other studies containing economic impact analyses. Employment, income, and output multipliers are tools for estimating private sector economic impacts of a new development within a local economy. These tools provide no final answers--and in fact may generate more questions than answers. The concepts presented in this guide will help determine which economic impacts are actually analyzed, and to question and evaluate the assumptions on which a study's projections are based. Key questions are listed for employment, income and payrolls, sales and output, and new investment. A methodology section addresses kinds of multipliers (employment, household income/earnings, output/business), estimation techniques, evaluating multipliers, leakage and local consumption, and structure of the local economy. The conclusion section offers some precautions about using multipliers: estimates are sometimes exaggerated; size of the multiplier should not be the sole evaluation criteria; an aggregate multiplier may not apply equally to all service sectors; and multipliers indicate nothing about the profitability of the proposed enterprise. (BRR)
Descriptors: Business, Coping, Decision Making, Economic Development, Economic Factors, Employment, Evaluation Methods, Income, Investment, Leaders Guides, Local Issues, Population Growth, Predictive Measurement, Resource Materials
Western Rural Development Center, Oregon State University, Corvallis, OR 97331 ($.25 ea. or $4.25 for 14-part series).
Publication Type: Guides - Non-Classroom
Education Level: N/A
Authoring Institution: Oregon State Univ., Corvallis. Cooperative Extension Service.; Western Rural Development Center, Corvallis, OR.
Identifiers: Economic Growth; Economic Impact; Estimation; Impact Statements; Multiplier Effect; Spending Patterns
Note: For related documents, see ED 225 754-755 and RC 015 106-117.