Business Services GroupThe Bureau of Business and Economic Research performs applied research projects for business, non-profit agencies, and government entities. The research may be primary where we gather and analyze new data, or secondary research where we search for existing studies and data. All types of entities come to us for information needed to make important decisions.

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Economic Impact Analysis

Economic impact analysis involves projecting changes in an economic system, often associated with some defined geographic region, which will result from certain actions and/or activities. Economists often utilize tools known as input/output models that are based upon historic relationships that exist in modern economies to make predictions about future economic impacts. Input/output models utilize existing data sets for the system (region) being analyzed and the industries that are likely to be affected, together with algorithms that have been developed that reflect how changes in one aspect of the economic system affect other aspects of the system. An important aspect of understanding and utilizing economic impact analysis is appreciating that the methodology is quite good at estimating the direction and the order of magnitude of likely impacts, but the projected impacts are not similar to more exact measurements that can occur “after the fact.” Because the input/output models generate precise numbers as estimates of outcomes, some people conclude that these figures convey much greater precision than they actually do.