slide1 n.
Skip this Video
Loading SlideShow in 5 Seconds..
Regional Impact Modeling Michael Hicks PowerPoint Presentation
Download Presentation
Regional Impact Modeling Michael Hicks

Loading in 2 Seconds...

play fullscreen
1 / 18

Regional Impact Modeling Michael Hicks - PowerPoint PPT Presentation

  • Uploaded on

Regional Impact Modeling Michael Hicks. You can have a new firm or activity that generates regional impact, without relevant economic development and at a time of negative economic growth. Regional Impact ≠ ED or Growth.

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
Download Presentation

PowerPoint Slideshow about 'Regional Impact Modeling Michael Hicks' - bryanne-kennedy

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
regional impact ed or growth

You can have a new firm or activity that generates regional impact, without relevant economic development and at a time of negative economic growth.

Regional Impact ≠ ED or Growth

economic growth is caused by

Technological progress– ubiquitous technological change, university and private R&D, and the ability to capture the benefits in-state

Private Capital – investment by business and residents

Public Capital – the quality of public goods and services, such as highways, etc.

Human Capital – the quality of a labor force (health, education, training and culture).

Unexplained factors – perhaps 1/3rd of growth forces

Economic Growth is caused by:

regional growth

Regional Growth

Growth in a county i, in year t, is a function of technological progress (A), physical capital (both public and private), K, human capital (H) and ‘unexplained variation’ or e.

economic development

A process by which communities attract, retain and reinvest wealth to improve the quality of life.

-David Dodson

Economic Development


Economic Impact

The effect on production, employment, earnings and tax revenues associated with the opening, closing, expansion or contraction of a business, government or other economic activity on a specified region.

how to measure

Historical study

  • Case Study
  • Economic Model

How to Measure?

economic model input output

Long history of use and interpretation

  • Relatively easy to use & low cost
  • Well received by policymakers
  • Easy to explain to media and stakeholders
  • Adaptable to industry and geography

Economic Model: Input-Output

how input output works

New Firm

Builds Facility

How Input-Output Works

Buys equipment


Buys services

The size of the impact depends on the size of investment, wages, etc., and the share of leakages (geography and industry).

Hires workers

Pays taxes



How it works in Practice

  • Data collected and calibrated since 1942
  • Multiple sources of model adaptions
  • Modeler needs information on industry, investment/employment
  • Model is wrong, but typically very useful
what does impact tell you first order issues

What Does Impact Tell You?(first order issues)

  • The impacts from a particular firm, in a particular industry
  • The tax effects (for a B/C analysis or TIF proposal)
  • Employment Impacts (DWD, B/C, etc.)
what does impact tell you second order issues

Differential impacts by firm/industry

  • Insight into negative effects of residential leakages
  • Importance of Quality of Place & Education
  • Fiscal considerations at local level
  • Level of likely reinvestment (commercial & residential)
  • Importance of overall region to ED success
  • Differentiates role for community (commerce, bedroom, etc.)

What Does Impact Tell You?(second order issues)


Data is 2-3 years old

  • Site specific taxes need watching
  • No labor supply constraints



Impact modeling is a tool for ED work

  • Aids in specifics of ED effort (TIF justification)
  • Critical tool for strategic thinking about economic and community development