Policy Uses of Economic Multiplier and Impact Analysis

Abstract

Summary Multiplier and impact analysis indicate the level ofeconomic activity that may be generated by a givenindustry or event. Although useful, limitations ofsuch work should always be discussed. Policy ana-lysts should consider additional efforts to shed fur-ther light on critical issues when appropriate. For Further Information: Hefner, F., and Morgan, J.M. (2001, April). The economic impact of a university: A critical review of the issues . Paper presented at the annual meet-ing of the Southern Regional Science Associa-tion, Austin, TX.Hughes, D.W. (1997). Military personnel and industry. In G.A. Goreham (Ed.), Encyclopedia of Rural America: The Land and the People (pp. 472-474). Santa Barbara, CA: ABC-CLIO Publishing Inc.Miller, R., and Blair, P. (1985). Input-output analy-sis: Foundations and extensions . Englewood Cliffs, NJ: Prentice-Hall, Inc. Table 1. What are some reasonable values for local economy multipliers? County employment size class Average multiplier Probable range1,000-2,999