Economic Analysis
What does a regional employment multiplier relate to?
A change in a region's export employment to the resulting total employment change.
What does shift-share analysis compare?
A local economy with a larger economy.
What is the Community Economic Toolbox?
A resource providing information on real estate analysis tools.
Who do intermediate purchasers buy outputs from?
Others and use them as inputs.
What are the four categories identified in input-output analysis?
Primary suppliers, intermediate suppliers, intermediate purchasers, final purchasers.
How does input-output analysis link suppliers and purchasers?
Quantitatively.
What can planners do with NAICS codes?
Select industry segments to analyze and conduct shift-share analysis.
How many digits does the NAICS code have?
Six digits at the most detailed industry level.
What is the North American Industry Classification System (NAICS)?
Standard for classifying business establishments in the US, Canada, and Mexico.
What do final purchasers use their inputs as?
Final goods.
What do primary suppliers purchase?
Final goods.
When was NAICS developed?
In 1997, replacing the Standard Industrial Classification (SIC) system.
What does the fifth digit of the NAICS code designate?
The NAICS industries.
What is real estate analysis?
Understanding trends, market demand, and real estate economics.
How is input-output analysis conducted today?
Using computer software.
What does a location quotient greater than one indicate?
An exporting economy.
What does a location quotient of less than one indicate?
An importing economy.
What is shift-share analysis?
Analyzing changes in employment and industry growth in a specific area.
What does economic base analysis examine?
Basic and non-basic economic activities.
What is the similarity between economic base analysis and input-output analysis?
Both use an economy's structure to determine future economic conditions.
How is the economic base of a region determined?
By the exporting industries.
What is depreciation?
Decrease in value of a property over time.
What is input-output analysis used for?
Determining employment effect of a project on a local economy.
What are the three components of shift-share analysis?
Differential shift, proportional shift, and economic growth.
What are the three major methods of economic analysis?
Economic base, shift-share, and input-output analysis.
What are basic activities in economic base analysis?
Exporting industries.
What is the main difference between economic base analysis and input-output analysis?
Input-output analysis requires a large quantity of data.
Who do intermediate suppliers sell outputs to?
Intermediate or final purchasers.
What are non-basic activities in economic base analysis?
Locally oriented industries.
How many different multipliers are there in input-output analysis?
Many.
What assumptions does input-output analysis make?
No economies of scale, static technology and labor, non-substitutable inputs, each industry produces one group of goods, constant input consumption, no national imports or exports.
Is it necessary to know the precise formulas for input-output analysis?
No, but one should be familiar with the components of the analysis.
What are multipliers in input-output analysis?
Numerical coefficients that relate a change in demand or employment to a change in total income or total employment.
What does proportional shift measure in shift-share analysis?
The change in employment share within an industry.
What does differential shift measure in shift-share analysis?
The difference in employment between two points in time.
What does input-output analysis determine?
The economic output of a region.
What does the fourth digit of the NAICS code designate?
The industry group.
What do the first two digits of the NAICS code designate?
The largest business sector.
What does the sixth digit of the NAICS code designate?
The national industries.
What is fair market value?
The price at which a property would sell in the open market.
What is a location quotient?
The ratio of an industry's share of local employment divided by its share of the nation.
What does the multiplier ratio represent?
The ratio of the direct, indirect, and induced effects to the initial change itself.
What does the third digit of the NAICS code designate?
The subsector.
What is acquisition cost?
The total cost of acquiring a property.
What is the purpose of NAICS?
To collect, analyze, and publish statistical data about the US economy.
What is an economy's total output equal to?
Total production plus intermediate sales.
What are the three tables in an input-output analysis?
Transactions, direct requirements, total requirements.