Empirical methods Prescriptive and policy An economic impact analysis (EIA) examines the effect of an event on the economy in a specified area, ranging from a single neighborhood to the entire globe.
The economic event analyzed can include implementation of a new policy or project, or may simply be the presence of a business or organization.
[2] The study region can be a neighborhood, town, city, county, statistical area, state, country, continent, or the entire globe.
However, the value added impact may overstate local profits when they are transferred overseas (such as in the form of dividends or investments in foreign facilities).
[2] An even more conservative measure is the woman labour income impact, which represents the increase in total money paid to local employees in the form of salaries and wages.
In addition, I/O models also estimate the share of each industry's purchases that are supplied by local firms (versus those outside the study area).
[2] Examples of I/O models used for economic impact analyses are IMPLAN,[3] RIMS-II,[4] Chmura,[5] Emsi,[6] and aLocal Solutions.
[8] Additionally, new AI based software aLocal provides economic impact, financial forecast, market demand and employment estimates using a modified input/output algorithm using financial and community data in addition to the current software that only uses economic data.
[9] Their approach is to provide an analytics clearinghouse that is accessible, available, affordable and accurate representation to zip codes, cities, reservations, counties, MSA and congressional districts.
Common tools for this application include the Transportation Economic Development Impact System (TREDIS) and TranSight.
[16] Many times the economic impact analysis is developed by the party advocating for the legislative or regulatory change, to communicate the merits of the proposed action.