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. It usually measures changes in business revenue, business profits, personal wages, and/or jobs. The economic event analyzed can include implementation of a new policy or project, or may simply be the presence of a business or organization. An economic impact analysis is commonly conducted when there is public concern about the potential impacts of a proposed project or policy.[1][2]
An economic impact analysis typically measures or estimates the change in economic activity between two scenarios, one assuming the economic event occurs, and one assuming it does not occur (which is referred to as the counterfactual case). This can be accomplished either before or after the event (ex ante or ex post).
An economic impact analysis attempts to measure or estimate the change in economic activity in a specified region, caused by a specific business, organization, policy, program, project, activity, or other economic event.[2] The study region can be a neighborhood, town, city, county, statistical area, state, country, continent, or the entire globe.
^Army Corps of Engineers: Glossary of Economic Impact Terms (http://corpslakes.usace.army.mil/employees/economic/glossary.html Archived 2012-08-26 at the Wayback Machine)
^ abWeisbrod, Glen; Burton Weisbrod (April 1997). "Measuring Economic Impacts of Projects and Programs" (PDF). Economic Development Research Group. Archived from the original (PDF) on 2015-03-19. Retrieved 2008-11-30.
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