ECONOMIC IMPACT INDICATORS

Using economic Input/Output modeling, this presentation provides a wealth of data about the potential project impacts on the regional economy, includingindustry data (e.g., industry output, labor income, input purchases, taxes paid), commodity data (e.g., foreign and domestic imports and exports by commodity, commodity sales by government and industry), household spending data, area demographics, and more. Key data elements are describedbelow:

❑ OUTPUT: Outputis the value of productionby industry in a calendaryear. Since output is the total productionvalue of a Sector,it includesall componentsofproductionvalue or outputfor a given Sector:Output= EmployeeCompensation+ ProprietorIncome + Tax on Productionand Imports+ OtherPropertyIncome+ IntermediateInputs.

❑ VALUE ADDED: Value Addedrepresentsthe differencebetweenOutputand the costof IntermediateInputs.Value Addedis a measure of the contributionto GDP made by an Industry orSector.

❑ LABOR INCOME: LaborIncomeis the sum of EmployeeCompensationand ProprietorIncome. It representsthe combinedcostof total payrollpaid to employees(e.g. wages and salaries, benefits, payrolltaxes) and paymentsreceived by self-employedindividuals and/or unincorporatedbusiness in a givenyear.

❑ OTHERPROPERTY INCOME:OtherPropertyIncome,consistsprimarily of corporateprofits but also includesan allowance for the consumptionoffixed capital(depreciation)and net business currenttransfer payments.

❑ TAXES ON PRODUCTION& IMPORTS:Taxes on Production & Imports,less subsidiesincludes sales and excise taxes, customs duties, propertytaxes, motorvehicle licenses,severance taxes, othertaxes, and specialassessments.

❑ EMPLOYMENT:Employmentdata followsthe same definition as Bureau of EconomicAnalysis RegionalEconomicAccountsand Bureau of LaborStatistics Census of Employmentand Wages data, which is full-time/part-timeannual average.

❑ ECONOMICEFFECTS:Input-OutputAnalysis is designedtopredictthe ripple effects of a given economicactivity in otherindustriesand geographiesthrough input purchases,labor payments,andtrade.

❑ DIRECT EFFECT:A Directeffect is the initial exogenouschange in final demandin terms ofIndustry Output,Employment,and/orLabor Income.

❑ INDIRECTEFFECT:Indirecteffects are the business to businesspurchases in the supply chain taking place in the region that stem from the initial industry inputpurchases.

❑ INDUCEDEFFECT:The Induced Effects stem from labor income being spent throughoutthe selectedregion(s)associatedwith the industriesspecifiedin the project(directeffect) and thoseimpactedthrough the supplychain (indirecteffects).