Economic Impact Studies
The Silicon Valley Institute for Regional Studies is available to conduct economic impact studies on a contract basis. These studies are intended to assist our region’s decision-makers across all sectors to better understand their impact (or potential impact) on the regional economy, and associated tax implications. Custom modeling is available for a variety of projects and existing infrastructure/programs.
The Institute utilizes the IMPLAN (IMpact analysis for PLANning) model. It is an Input-Output economic impact assessment software system that combines a set of extensive databases, economic factors, multipliers, and demographic statistics with a highly refined modeling system in order to provide insights. The system was originally developed in the 1970s through a collaboration between the U.S. Forestry Service and the University of Minnesota, in cooperation with the Federal Emergency Management Agency (FEMA), and is now maintained by the Minnesota IMPLAN Group (MIG). It utilizes roughly 100 datasets and a backward-linkage approach (how the model views the interconnection of an industry to other industries from which it purchases its inputs in order to produce its output), and is used widely by academics at universities across the country.
The Institute is pleased to provide critical insights to a wide range of clients across all sectors. Our economic analyses empower clients to make informed decisions with accurate, reliable, and transparent data and insights for:
- Businesses looking to examine the impacts of expected growth or changes such as new construction, relocation, expansion, or layoffs;
- Developers who want to understand the economic impacts of a real estate, business, or construction investment;
- Educational Institutions interested in the regional impacts of activities such as construction, outreach activities, and programs;
- Nonprofits seeking data on their programs’ impacts in the community;
- Government entities looking to assess the economic impacts of their policies (or potential policies);
- Labor organizations interested in the induced impacts of wage changes within a particular industry;
Example research questions
The following are examples of research questions which may be examined through this type of economic impact assessment:
- What are the economic impacts of a local university? E.g., how do university, student, and visitor expenditures affect the regional and broader economy in terms of economic output, jobs, and tax revenues?
- What are the impacts of a construction project? E.g., how will the construction of a new office building in a particular neighborhood affect jobs within the broader region?
- What would be the economic impacts of a massive layoff within a particular industry? E.g., what would be the direct, indirect, and induced effects of a massive layoff of manufacturing workers within a particular region?
- How does a particular restaurant chain contribute to the regional economy? E.g., what has been the local economic impact of a particular chain of coffee shops relative to limited-service restaurants overall?
- How would a land use decision affect the regional economy and tax revenues? E.g., what would be the local economic and tax impacts of utilizing existing industrial space for mixed-use retail and multi-family housing?
Deliverables may include:
- direct, indirect, and induced economic impacts (employment, payroll, value added, and total economic output) within the region, and in its commute-shed.
- tax impacts at the local, county, and state levels.