The Economic Perspective: “Evaluating Economic Impact Studies”

I’m Mary Walden, with economist MW, welcoming you to the economic perspective.   Today’s program looks at evaluating economic impact studies.  Mike, economic impact studies are often in the news when big projects are proposed or when large institutions are evaluated.  What exactly are economic impact studies and what factors should be kept in mind when hearing of them?

  1. Say a sports venue is proposed – economic impact study may be used by promoters to show how much local income and jobs will be created
  2. Or a large business or institution might commission an economic study to show how important they are in generating jobs and incomes
  3. Three considerations to keep in mind
  4. One – what are the assumptions that are made behind the numbers – for sports venues – attendance?
  5. Two – are jobs and income numbers only for the local areas – or do they include jobs and incomes based on purchases from companies outside the local area? – want only the former
  6. Three – when public money is being proposed – does the analysis compare its results to the results if the funds were used in other ways?
  7. I’m MW

And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.