Economic Impact Reports | Local Equity Impact Investment

Economic Impact Report Basics

We believe that every good project needs an analysis that highlights the number of temporary and permanent jobs and incremental taxes to local, state, and federal partners. Our team works with clients to dissect the project, understand the 'multiple', and deliver a document that can be used for grants and public assistance. We often work with developers to substantiate the need for hotel Transit Occupancy Tax (TOT) rebates, infrastructure support, or other incentive negotiation.

Methodology

Local Equity uses multiple econometric modeling platforms to calculate the direct, indirect, and implied impacts of a potential development. such econometric modeling platforms utilize input-output model basics. They trace spending through an economy and measure the cumulative effects of such spending based on hundreds of data points. Input-Output (I-O) analysis is designed to predict the ripple effect of economic activity by using data from historical spending. Production in a given industry in an economy supports the demand for production in industries throughout the economy due to supply chain spending and spending by workers.

Data requirements include:

Zip Codes
Congressional Districts
Counties
States
US Total

Region

Event Value

Changes in 1 or more:

Output

Employment

Employment Compensation

Proprietor Income

Event Type

Industry Events, Industry Contribution Events, Commodity Output Events, Labor Income Events, etc.

Group Data Year

Year of the data set IMPLAN will use in the analysis. Defined as the year that best represents the economy when the event occurred.

Group Dollar Year

Year of the dollar within the events in the group. Used to determine the appropriate deflator for adjusting the events dollars from the dollar year to the data year.

Output models include:

Direct Effect

These initial changes are determined by the activity or policy being analyzed.

Indirect Effect

Economic effects stemming from business-to business purchases in the supply chain.

Induded Effect

For all industries, output equals the value of industry production, which is equal to sales plus net inventory change. In IMPLAN these are annual production estimates for the year of the dataset in producer prices.

Output

An industry-specific mix of full-time, part-time, and seasonal employment.

Eployment

The total payroll cost of the employee including wages and salaries, all benefits (e.g., health, retirement), and Payroll taxes.

Labor Income

The total payroll cost of the employee including wages and salaries, all benefits (e.g.; health, retirement), and payroll taxes.

Value Added

The differences between an industry's or establishment's total Output and the cost of its Intermediate Inputs. A measure of the contribution to GDP. Encompasses Labor Income (LI), Other Property Income (OPI), and Taxes on Production & Imports less Subsided (TOPI).

Taxes on Production & Import less Subsidies (TOPI)

The current-production income of sole proprietorships, proprietorships, partnerships and tax-exempt cooperatives. Excluded dividends, monetary interest received by non-financial business, and rental income received by persons not primarily engaged in the real estate business.

Other Property

Calculated as gross operation surplus minus proprietor income.OPI includes consumption of fixed capital (CFC) corporate profits, and business current transfer payments (net).