Michigan State University Extension
Tourism Educational Materials - 02069504
06/06/02

Coping With Change: Economic Impacts What An Impact Statement Says

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Source: Western Rural Development Center
ID:WREP31, 14 pages
Format: Full Text
Author: Dave, Holland
Year: 1994 Revised

Originally prepared in 1980 by Ronald C. Faas,
Extension Economist Washington State University

Revised March 1994 by Dave Holland, Regional Economist
Washington State University

A publication of:
Western Rural Development Center
Oregon State University
Ballard Extension Hall 307
Corvallis, OR 97331-3607
(503) 737-3621
FAX: (503) 737-1579
E-mail - WRDC@ccmail.orst.edu

WRDC offers its programs and materials equally to all
people.

COPING WITH GROWTH

This publication was part of the Coping with Growth
series produced by the Western Rural Development Center
in 1979-80. The publications in that series have been
reviewed, the information brought up to date, and the
series name changed to indicate the relevance of these
materials to circumstances other than growth. Other
titles from the original series that have been revised
include:

WREP 16 Evaluating Fiscal Impact Studies
WREP 17 Minimizing Public Costs of Residential Growth
WREP 20 Coping with Rapid Growth: A Community
Perspective
WREP 21 Citizen Involvement Strategies
WREP 22 Interagency Coordination
WREP 23 Public Policy Education: Its Role in Community
Change
WREP 29 Assessing Fiscal Impact
WREP 30 Programming Capital Improvements
WREP 45 Population Change: Know the Trends in Your
Community

Copies may be obtained from WRDC, 307 Ballard Extension
Hall, Oregon State University, Corvallis, Oregon 97331-
3607, (503) 737-3621, FAX (503) 737-1579. WRDC
publications are available for a minimal charge to help
defray the cost of printing and handling.


New economic development activities, such as commercial
expansion, light manufacturing, tourism or retirement
facilities, and private housing construction, affect
the private sector of a community's economy.

Such projects require new investment in plant
facilities and lead to increased local employment,
income, and sales. The new economic activity often
stimulates local business. Commercial activities and
residential housing expand to serve the new population.

Local public officials and concerned citizens must
carefully evaluate the economic impact information
presented to them regarding a proposed development.

Employment, income, and output multipliers are tools
for estimating the economic impacts of private sector
businesses on a local economy as the result of new
development.

These tools provide no final answers---in fact they may
generate more questions than answers. However, public
officials may be confronted with the use of economic
multipliers when asked to react to project proposals,
to environmental impact statements, or to other studies
containing economic impact analyses.

The concepts presented in this publication will help in
determining which economic impacts are actually
analyzed, and to question and evaluate the assumptions
on which the study's projections are based.


Any impact assessment should estimate what the economic
impacts are likely to be for the community's private
sector. Presented here are examples of economic
information that is often found in impact statements,
along with some questions that it might be useful to
ask the analyst. The tools that economists use to
assess private sector economic impacts are introduced,
along with some criteria for evaluating economic impact
studies.

Private sector economic impacts are of interest to
various groups of people although they may benefit some
more than others. Workers welcome new job opportunities
but higher wage levels may cause concern for existing
employers. The purchasing power of the new industry and
its employees will be attractive to local business
people and to outside investors. Increased housing
demand will mean more business for local Realtors,
building contractors, and property owners. But it also
means higher rents for people in the community---
including those on fixed incomes.

New investment generates increased property and sales
tax revenue. This is of interest to local public
officials concerned about meeting increased demands for
services.

Promoters of a particular economic development will
strongly emphasize the new jobs, increased payrolls,
expanded sales, and new investments. These factors form
a very persuasive argument when public officials are
asked to make a zoning change, grant a variance, or
allow a tax concession.

But many people are affected by private sector economic
impacts of a new development activity, and careful
assessment of these impacts is essential. Accurate
information about changes in employment, income and
sales is needed to anticipate related changes in
population, housing, school enrollment, capacity of
public facilities, and demand for public services. The
social stress related to community growth is even more
difficult to quantify than economic or fiscal impacts.

Data on private sector employment, income, sales, and
new investment provide a necessary base for estimating
related changes so that entrepreneurs, public
officials, and concerned citizens can respond in an
informal manner.

Public officials need to consider economic impacts when
evaluating an environmental impact statement (EIS).
This document accompanies a request for official action
relating to a proposed development. The EIS may contain
some information about socioeconomic impacts, although
sometimes economic impacts are not even mentioned in
the EIS. Rarely will all categories of economic
impacts---employment, income, sales, and new
investment---be addressed in the EIS.

EXAMPLES OF ECONOMIC IMPACT DATA

The quality of information given in an EIS can be
variable. The following examples were extracted from
actual impact reports.

VALLEY RESORT EXPANSION

The assessed valuation of property in the county can be
expected to rise considerably as a result of the Valley
Resort expansion, though the amount of the increase is
impossible to estimate at this time. The county may
benefit from increased sales tax revenues.

Employment projections are necessarily sketchy, but it
can be expected that the jobs available will increase
in the same occupational categories that now exist in
the Valley. At present there are less than 50 people
employed in the Valley. At full employment, there will
be jobs created for at least 500.

The resort example is particularly vague in its
estimates of increased investment (reflected by
assessed valuation) and increased sales (indicated by
sales tax revenues). No basis is given for the
employment estimates, nor does the report indicate
whether the numbers cited represent people employed
directly by the resort or the total employment in the
area.

SUBDIVISION PROJECT

Jobs related to the project will be derived from
construction activity for subdivision improvements and
residential dwellings. Over the two-year construction
period proposed, it is estimated that the project will
provide the equivalent of 15 full-time job slots and an
annual payroll of $375,000.

A precise estimate of employment and payroll associated
with a subdivision project is provided in this EIS.
However, the report does not mention the assumptions on
which these estimates were based, nor whether these are
direct impacts or total impacts.

FACTORY X

As a new basic* industry in the area, Factory X, as a
source of employment, would sell much of its product to
markets outside of its location. Therefore, its
operations employees would represent an increase in
basic employment within the region. New non-basic*
employment associated with the proposed development
would be persons employed by firms or industries within
the area that supply Factory X with production-process
goods and services, plus additional employees in
wholesale/retail trade, services, and local government
sectors.

Factory X's assessment of 450 basic jobs creating 900
non-basic jobs, with a total employment growth of 1350
may be high because the current level of non-basic
employment in County A is part of an existing
trade/service/governmental system serving a multi-
county area with a population of 30,000 to 35,000 or
more. In other words, a simple comparison of basic
employment to non-basic employment in County A will
over estimate the number of non-basic jobs generated by
each basic job in the county. In addition, a
substantial proportion of any new jobs will be filled
by residents of this area, whose trade, service, and
governmental 'needs' are already fulfilled by the
area's existing system.

The Department of Ecology developed an alternative
assessment of total employment impacts, based on the
Washington State Input-Output Model. This analysis
suggested that an increase of 450 basic jobs would
generate not 900 non-basic jobs, but only 225 non-basic
jobs, for a total employment impact within the region
of approximately 675.

Be aware that impact statements for new business coming
into rural regions are prone to over estimate the non-
basic employment impact in order to inflate public
perceptions about the economic importance of the
business to the jobs base in the region. The EIS for
Factory X provides some information about employment,
but leaves many other questions unanswered. More
information is needed about changes in payrolls, sales,
and new investment.

_________________________________
*The terms basic (export) and non-basic (service) are
discussed in the "Methodology" section.

_____________________________________________________
Figure A. Employment impact projects by Factory X and
by the Department of Ecology (Vis. A)
_____________________________________________________

SOME KEY QUESTIONS

Listed below are questions that should be considered
when evaluating information about private sector
impacts of a new development. If the proposed new
economic activity is being justified on the basis of
economic benefits---new jobs, payrolls, sales, and
investment---local officials need reasonable answers to
these questions to make informed public decisions
concerning the development.

EMPLOYMENT

How many people will be directly employed by the new
export activity during the construction phase?

- What kinds of construction workers will be needed?

- How many of each kind?

- Will these be full-time employees or seasonal
workers?

- When will they begin work?

- How long will they be employed?

How many people will be directly employed by the plant
during the operations phase?

- What kinds of workers will be needed?

- How many of each kind of worker?

- When will they begin work?

- If seasonal workers will be employed, will the timing
complement or compete with existing local seasonal
employment?

- How many of these new export (basic) workers are
likely to be hired from within the local community?

- Will these be people currently unemployed or
employees drawn away from other jobs? Will such
vacancies be filled with new employees, or will job
functions be consolidated?

- How many of the new export workers are likely to
commute from other communities?

- How many are likely to migrate into the community and
become new residents?

- How many people might migrate into the community in
hopes of obtaining a job, and possibly add to the
community's unemployment rolls?

How many new service (non-basic) jobs are projected as
a result of the new export activity?

- How many workers are likely to be hired from within
the local community?

- Will these be people currently unemployed, or
employees drawn away from existing jobs?

- How many new service workers are likely to commute
from neighboring communities?

- How many are likely to migrate into the local
community and become residents?

INCOME AND PAYROLLS

What is the anticipated annual payroll of the new
export activity during the construction phase and
during the plant operation phase?

- How will the payroll be distributed (by type of
worker?)

- How much is likely to go to workers hired from within
the local community?

- How much is the income loss from previous jobs not
refilled in the community?

- How much of the new payroll will go to commuters
living outside the local community (who tend to spend
their income where they live)?

- How much of the new payroll will be spent locally
rather than outside the community in neighboring
trade centers?

How much additional service payroll will be generated
in local businesses?

SALES AND OUTPUT

What types of sales are expected by the new export
activity?

- What is the expected annual volume of each type of
sales?

What are predicted types of purchases from local
support businesses by the new export activity?

- What is the expected annual volume of each type of
purchase from the local business sector?

What are predicted types of purchases from local
support businesses by the new workers at the export
activity?

- What is the expected annual volume of each type of
purchase from the local business sector?

Will these local purchases by the new export activity
and its employees be made from existing businesses or
from new businesses (opened perhaps by outside
investors)?

NEW INVESTMENT

How much new capital investment is planned by the new
export activity?

How much new investment is expanded commercial
facilities can be expected by service businesses?

How much new housing investment is like by new
employees or existing residents with increased incomes?

In some cases, the State Environmental Policy Act does
not require including an economic impact analysis in an
EIS. Why, then, should these kinds of questions be
considered in the analysis of a new project proposal?

Usually, a new export activity directly employs new
workers; it may also stimulate increased indirect
employment in support/service businesses. To predict
how much new population will be drawn in, it is
necessary to estimate how many of the new workers
migrating into the community will be heads of
households.

Informed estimates of new population are important for
determining increased school enrollment. Demand for new
housing also depends on new population, as well as on
the increased income of existing residents.

Reasonable estimates of future demand on public
facilities and services also depend on population and
housing projections. Increased tax revenue is generated
from assessed valuation of new investment and from
increased sales in the community. This revenue
determines how much expansion of public facilities and
services can be accomplished, and when it can occur.

Social impacts of a proposed project are difficult to
predict without accurate estimates of:
- new population likely to migrate into the community
because of new employment
- the level of new income generated
- the community's financial ability to provide
additional public services and facilities for the new
population.

Careful attention to private sector changes in
employment, income, sales, and new investment will
provide a reasonable base for predicting indirect
impacts from a new project. Changes in population,
housing public facilities and services, and fiscal and
social impacts must all be anticipated by a community
preparing for growth.

METHODOLOGY

How do economists assess the private sector economic
impacts of a new development?

The economic multiplier is one tool that is often used.
Multipliers are based on the interdependency between
two types of business sectors in the local economy---
the export (or basic) and local (or non-basic) sectors.

Export activities produce goods and services for sale
outside the local economy (exports). By selling
exports, these activities bring new dollars into the
local economy, providing fuel for growth. Some export
activities in non-metropolitan areas are agriculture,
forestry, mining, manufacturing, tourism, and
construction of large-scale projects such as prisons or
electrical generating plants. Other less obvious basic
sectors are "lone eagle" type consulting firms and the
attraction of early retirees into a region. By selling
outside the local economy or drawing transfers into the
local economy, these export sectors are considered
"prime movers" of the local economy.

Other business activities that sell goods and services
to residents or other businesses within the local
economy make up the non-export (or non-basic) service
sectors. These generally include such service-oriented
businesses as retail grocery and clothing stores, auto
and machinery repair shops, banks, accountants, and
doctors. By selling their goods and services within the
local economy, the service activities circulate the new
dollars brought in by the export sectors. Note,
however, that it is increasingly common for selected
service sectors to have both basic and non-basic
components. Examples are accounting firms who sell
their services to firms or households outside the
region and hospitals that treat some patients from
outside the region.

An expansion in sales generally has a multiplier effect
such that total change in income for the local economy
is greater than the dollar volume of the initial
expansion alone. An additional increment of output by
an industry producing goods for export outside the
local economy, for example, will require additional
inputs. Firms and individuals that supply the
additional inputs to the exporting industry will, in
turn, increase purchases from their suppliers. This
process continues through successive rounds of
expenditures until the local economy reaches a new
supply-demand equilibrium.

Figure B. The Multiplier Concept of Local Respending
Patterns (Vis. B)

Likewise, this cumulative effect can be illustrated by
tracing $1 in wages spent by a new worker at the plant.
Assume that the worker spends 50 cents locally, and 30
cents outside the local economy, with the remaining 20
cents being used for savings and income taxes. The
local merchants receive 50 cents and use 25 cents to
purchase goods from suppliers outside the community.
The remaining 25 cents is spent locally by the merchant
for wages. In this example, the initial 50 cents spent
locally by the worker generates another 25 cents of
local income (wages). This process repeats itself over
and over again until the economy reaches a new
equilibrium. The total increase in wages will be the
initial $1 plus an additional 33 cents of round-by-
round effects. The wage or income multiplier in this
example would be 1.33.

Multipliers are an easy way to estimate the sum of all
the spending and respending without adding up each
individual transaction.

KINDS OF MULTIPLIERS

As described above, the multiplier is the numerical
relationship between an original change in economic
activity and ultimate change in activity that results
as the money is spent and respent through various
sectors of the economy. There are several kinds of
multipliers used to assess private sector economic
impacts of new export activity, including employment
multipliers, income multipliers, and output
multipliers.

An employment multiplier is the total change in full-
time equivalent employment (F.T.E.) Generated in the
local economy for each change of one F.T.E. in an
export sector of that economy. (Note that one F.T.E.
can be full-time job, or it can be two or three part
time positions with total hours worked equaling a full
year.) In the EIS example, Factory X used an
employment multiplier of 3.0 to estimate that 450 new
export jobs would generate a total of 1,350 new jobs in
the local economy. In contrast, the Department of
Ecology used a more conservative multiplier of 1.5 to
estimate that the same 450 new export jobs would
generate a total of only 675 new jobs in the same local
economy. (Some possible reasons for this variation from
3.0 to 1.5 are discussed in the "Evaluating
multipliers" section.) Both totals include the initial
450 new export jobs.

A household income (or earnings) multiplier is the
total change in household income throughout the local
economy from a one dollar change in household income
payments by an export sector. For example, if the
household income multiplier for mining firms in the
local economy was 2.5 each initial $1.00 increase in
the mining firm's payments to households would generate
another $1.50 increase in other household incomes,
making a total of $2.50 in increased payments to
households throughout the local economy.

An output (or business) multiplier is the total change
in sales generated throughout the local economy by a
$1.00 change in export sales of a particular sector.

ESTIMATION TECHNIQUES

Techniques for estimating economic multipliers range
from guessing or using rules of thumb to sophisticated
econometrics models. Two of the most commonly used
tools are the export base approach and the input-output
model. In both approaches, the local economy is divided
into separate business sectors.

The export base approach uses a two-sector export and
service model such as that described at the beginning
of the "Methodology" section. An input-output model
further disaggregates export and service activities
into separate sectors, and an accounting is prepared of
what each of the sectors buy and sell from every other
sector. From either approach, it is possible to derive
multipliers that estimate the changes in the economy
caused by an increase or decrease in sales of any
particular sector of the local economy.**

The input-output model may be more costly to assemble
depending on the complexity of the economy and the
expense of a survey to compile some of the data for its
computation. Furthermore, the predicted input-output
relationship may not hold true over time. Thus, a
forecast of a broad aggregate such as regional income
or employment made on the basis of a multi sector
input-output model will be only as good as the
assumptions underlying the model.

Export base multipliers have the advantage of being
generally quicker to construct and easier to use. They
are likely to be less expensive to compute than input-
output models and have minimal data requirements. Since
the export base approach generates a single aggregate
multiplier, its accuracy for specific economic sectors
is far less than that of the input-output model---but
it may be acceptable for some situations in smaller,
more rural economies.

EVALUATING MULTIPLIERS

It was noted in the previous section that two different
employment multipliers---3.0 and 1.5---were estimated
by Factor X employment multipliers---3.0 and 1.5---were
estimated by Factory X and the DOE. The two multipliers
resulted in differing estimates of total employment
impacts of 1,350 and 675 new jobs to be generated from
450 new export jobs. What factors might account for the
difference in the multipliers that were calculated?
How might one judge what size multiplier is more
reasonable?

The essential test of accuracy for a multiplier is how
closely it reflects the actual economic relationships
in the economy under consideration.

In the past, due to the cost of conducting an export
base study or developing a local input-output model,
analysts would borrow multipliers that were not
developed specifically from local data. Such
multipliers are overlaid onto the area on the
assumption that the multiplier will adequately reflect
the relationships in the local economy. An example
would be the use of a multiplier for the mining sector
in Big Horn County, Wyoming, to estimate impacts of new
mining activity in Ferry County, Washington.
Alternatively, a multiplier from the mining sector in
the state input-output model may be stepped down to the
local economy.

However, there are many instances in which an economy
is so unique that overlaying will not produce accurate
results. In recent years the cost of producing regional
input-output models has been reduced due to the use of
regional multi sector data bases and model building
software for the personal computer. When combined with
selected primary data relating to the local economy,
reasonably accurate, and very detailed regional input-
output models may be produced in less than one week.
For this reason the need to use an overlay or stepped-
down multiplier has been greatly reduced with the
change in the technology of regional input-output model
building
______________________________________
**Input-output multipliers can be calculated two
different ways. The Type I method does not include the
household sector in the calculation. By assuming that
once a dollar reaches the household sector, it leaks
from the economy, Type I multipliers tend to understate
the total impact. The Type II method does include
household interactions with the economy. Type II
multipliers are applied more often in economic impact
analysis.

According to Gordon and Mulkey, the size of the
community income multiplier is directly related to two
variables:

1) The propensity of households to consume locally, and
2) The total (direct, indirect, and induced) income in
the local economy resulting from each dollar spent
in local consumption.

In other words, the larger the proportion of income
spent locally and the larger the propensity for local
expenditures to generate income in the local economy,
the larger will be the income multiplier.

LEAKAGE AND LOCAL CONSUMPTION

Leakage is a drain on the local economy as households
spend part of their income elsewhere. Other things
being equal, the propensity to consume locally is
expected to be relatively higher (and leakage
relatively lower):

- In a larger community that has more diverse economy;
- In a community located a substantial distance from
competitive shopping centers; and
- In a community where income per capita is relatively
low.

Population size and economic diversity can influence
multiplier size. A larger, more diverse area generally
has a greater variety of businesses; thus, more of a
given dollar is apt to be spent locally before leaking
than would be the case in a smaller area. A multiplier
for a county will be smaller than that for a multi
county area, which in turn, will be smaller than the
multiplier for a statewide economy.

A multiplier is also affected by the local economy's
geographic location and accessibility of major trade
centers. The total income generated by a new export
activity could be reduced drastically if a large
proportion of the new payroll is being spent outside
the local economy. Money spent by local residents for
purchases in stores outside the local community is
leakage because it is not likely to get circulated back
into the local economy. Thus, areas near trade centers
(with the trade center located outside the local
economy) have smaller multipliers due to leakage than
do similar areas that contain their own major trade
centers. The latter situation keeps more of each dollar
in the local economy for more rounds of spending.

Weber found that local economies with relatively high
income per capita were generally characterized by lower
multipliers. High income households tend to purchase
more luxury items and services that are produced
outside the local economy.

Another form of leakage is the import of raw materials
for local processing or manufacturing. Consider two
areas with similar new manufacturing plants; one can
buy raw materials locally, but the other must import
those materials. If a community is able to provide the
goods and services required by the plant, the
multiplier will be much greater than it would be if
some or all of those goods and services were purchased
from outside the local economy.

STRUCTURE OF THE LOCAL ECONOMY

The amount of income generated in the local economy per
actual dollar spent locally will vary with the
structure of each economy.

Different sectors of the local economy, for example,
have different backward linkages to other sectors of
the local economy. Backward linkages refer to the
inputs purchased. If one new plan purchases primarily
labor, then its impact is likely different from another
new development which makes relatively large purchases
of utilities, transportation, etc., along with labor.
In some cases, a particular new manufacturing industry
may create a greatly expanded demand for specific
locally produced goods and services.

A multiplier for a particular sector, such as mining,
might also vary from one community to another due to
differences in excess capacity in the local economic
structure. Local retail business establishments
operating with excess capacity could absorb
considerable new business before needing to add more
salespersons or expand their facilities. In such cases,
the income multiplier would likely be higher than the
employment multiplier. On the other hand, if such
businesses were already operating at full capacity,
increased sales would likely create new jobs and
payrolls in operating the additional business activity
and in construction of expanded facilities to handle
the increased sales, thus contributing to higher
employment and income multipliers.

Another case where the income multiplier could be
higher than the associated employment multiplier is
when a local labor market with excess capacity can
provide a large portion of the needed work force. If a
labor market with excess capacity included enough
unemployed (or underemployed) workers to meet the needs
of a new mining operation, for example, then few new
workers would be drawn in from outside the local
economy. And if very little of the needed work force
were available from within an economy having no excess
capacity, then a sizeable percentage of the new workers
would be drawn into the community, but perhaps as
commuters rather than as new residents. A relatively
higher income multiplier should result from new
payrolls to local workers being spent locally than from
those same payrolls going to commuters spending most of
their income outside the local economy.

Another issue is whether an average multiplier or a
marginal multiplier has been determined. The average
income multiplier for a given sector is typically
presented as the change in regional total income
divided by the change in sector income at a point in
time. Representative production technology for the
sector is assumed. The marginal income multiplier, on
the other hand, calculates the same ratio but makes the
assumption that the sector will use the most productive
technology possible. There may be substantial
differences in the value of these two multiplier
estimates due to changes in the production technology.
New technology is apt to employ a much higher ratio of
capital to labor as well as use less variable inputs
from local sources. Should that be the case, the
marginal income multiplier will be less than the
average income multiplier for a given sector.

Accuracy of a multiplier depends on how well it
reflects the actual economic relationships in a
particular local economy. Since those actual
relationships are difficult and costly to determine, it
is difficult to judge which size multiplier might be
more reasonable. Rather than choosing a specific
multiplier, an appropriate course might be to display
employment impacts for a range of multipliers
representing alternative assumptions relating to how
the local economy might react to a given shock. This
recognizes the difficulty in obtaining the exact
estimate of the multiplier, yet allows the community to
anticipate the impacts of the high and low estimates of
changes in economic activity. One probable range of
aggregate multiplier values is shown in the following
table for each county employment size-class.

________________________________________________
Figure C. Average multiplier values and ranges by
county employment size-classes. (Vis. C)

CONCLUSION

SOME PRECAUTIONS

Estimates of income and employment multipliers are
sometimes greatly exaggerated. Gordon and Mulkey argue
that an aggregate community income multiplier of over
2.5 should be critically evaluated, and should not be
accepted for impact analyses without a convincing
explanation of why it is so large. Individual sector
income multipliers, such as agriculture and
manufacturing, may be larger than 2.5, however.

The size of the multiplier should not be the sole
criterion used evaluating a new economic activity. For
example, a hot dog stand may have a high multiplier,
and pulp plant a much lower one. The point is that one
should consider the amount of initial employment,
income, etc. brought in by the new activity, which
along with the multiplier effect, influences the total
economic impact within the local economy. One hundred
new workers in a sector with a multiplier of 1.1 would
have ten times the impact of two new workers in another
sector with a multiplier of 5.5.

An aggregate multiplier may not apply equally to all
service sectors in the local economy. It should be
noted that with the change in the relative importance
of the service sectors, some types of service
businesses should be viewed as part of the economic
base of the local economy. For example, a possible new
shopping center opened up by outside investors may draw
customers from outside the local economy, increasing
other non-basic activity as well.

Multipliers indicate nothing about the profitability of
the proposed export enterprise. Decisions for or
against a particular development must take into account
the financial viability of the enterprises comprising
it---and economic multipliers cannot provide this kind
of prediction.

FOR FURTHER INFORMATION

Goldman, George E. "Explanation and Applications of
County Input-Output Models." Cooperative Extension
Service, University of California, Berkeley, May
1975.

Gordon, John, and Glenn Nelson. "As Your Community
Grows---Some Economic Considerations." Cooperative
Extension Service, Purdue University, EC 446.

Gordon, John, and David Mulkey. "Income Multipliers of
Community Impact Analyses---What Size is Reasonable?"
In Journal of Community Development Society of
America, Vol. 9, No. 1, 1978, pp. 8693.

Shaffer, Ron, and John R. Fernstrom. "Selling a
Community on Industry." In Bringing in the Sheaves,
ed. John R. Fernstrom. Oregon State University
Extension Service, June 1973.

Smith, Eldon D. "A Synthesis: How New Manufacturing
Industry Affects Rural Areas." Southern Rural
Development Center, Rural Development Synthesis
Series No. 1A, Sept. 1978.

U.S. Dept. Of Agriculture, Economics, Statistics, and
Cooperatives Service. "Regional Development and Plan
Evaluation: The Use of Input-Output Analysis."
Agriculture Handbook No. 530, May 1978.

U.S. Dept. Of Commerce. "County Business Patterns."
Annual Report.

U.S. Dept. Of Commerce, Bureau of Economic Analysis.
"Local Area Personal Income." Report, B.E.A.
supplement 76-03, 1976.

Washington Dept. of Employment Security. "Employment
and Payrolls in Washington State by County and
Industry." Annual and Quarterly Reports.

Weber, Bruce. "Sectoral Output Multipliers for Rural
Counties: Lessons from Oregon's Input-Output
Studies." Oregon State University Extension Service,
EC 1166. Feb. 1984.

The authors appreciate the review and comments of Lee
Blakeslee, Walt Butcher, Ken Duft, and Ralph Loomis of
Washington State University, Neil Meyer of University
of Idaho, and Garnet Premer of University of Wyoming on
the original April 1980 issue of this leaflet.


WREP 31 - A Western Regional Extension Publication
Revised August 1994

Issued in furtherance of Cooperative Extension work
acts of May 8 and June 30, 1914, in cooperation with
the U.S. Department of Agriculture, O. E. Smith,
director, Oregon State University Extension Service.

Other western State Extension directors include: Hollis
Hall, University of Alaska; Pemerika Tauiliili,
American Samoa Community College; James A. Christenson,
University of Arizona; Kenneth R. Farrell, University
of California; Milan A. Rewerts, Colorado State
University; Chin Tian Lee, University of Guam; Noel P.
Kefford, University of Hawaii; Leroy D. Luft,
University of Idaho; Anita R. Suta, College of
Micronesia; Andrea L. Pagenkopf, Montana State
University; Bernard M. Jones, University of
Nevada/Reno; Jerry Schickedanz, New Mexico State
University; Antonio Santos, Northern Marianas College;
Robert Gilliland, Utah State University; Harry B.
Burcalow, Washington State University; Jim DeBree,
University of Wyoming.


Visuals associated with this text.

Visual title - Visual size Visual title - Visual size
Employment Impact Projections by Factory X & Dept of Ecology - 197K The Multiplier Concept of Local Respending Patterns - 104K
Average Multiplier Values and Ranges by County Employment Sizes - 239K
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