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Economic Impact Analysis:
Precise Economic Measurements of Industries and Corporations

  • Comprehensive profile of your firm or industry and the jobs, income, and taxes created
  • Results shown by national, state, and legislative district level
  • Accurate high-powered information for responding to legislative proposals
  • Identification of allies through impact shown on other industries
  • Dynamic message tools for tailoring results to fit your purpose

Our economic impact models calculate the full economic significance of an industry or large corporation, including elements that other researchers often omit. American Economics Group, Inc. (AEG) measures the total employment, sales, and income that an industry creates and presents this information by state, county, or legislative district. In addition, we calculate the state and local tax revenue derived from all aspects of an industry's operations and from its workers' spending. See how AEG can help you effectively communicate the size and scope of your business.

Use the Best Models and Methods Available
To analyze the economic impact of an industry, AEG uses a large-scale model based on the well-respected input-output technique. This technique specifies the economic relationships among all industries and between businesses, consumers, and government. It shows how each industry, in producing the goods and services it sells, must purchase from suppliers in other industries, wherever they are located.

For example, an industry may purchase paint, food, chemicals, paper, steel, advertising, equipment, or construction services in its production process, providing business and creating jobs throughout the economy. In turn, each of these firms must purchase from suppliers, and these suppliers from their own suppliers, while the employees of all industries involved purchase food, clothing, shelter, and other items from many other firms. To summarize an industry's significance, our models track this path of economic activity and calculate its full value, the jobs required, and their locations.

We separate this activity into direct effects (sales by the industry under study); indirect effects (the inter-industry purchases made in response to these direct sales, mostly supplier purchases); and induced effects (household spending by the employees and owners of all industries having direct and indirect effects). We then allocate these effects to more than 500 separate industries, which can be tabulated by state, county, city, region, or legislative district.

Respond Quickly to Legislative Proposals
Using our exclusive BriefingsNet™ technology, we deliver economic impact studies that are dynamic decision-making and communication tools, not dry, static reports. By tying your economic impact figures to these creative communication materials, BriefingsNet lets you update message points on the fly from throughout the U.S.

We also develop specific calculators to measure the impact of proposed changes in laws, taxes, or regulations on your industry and the economy in general, enabling you to respond to legislative actions and proposals. In fact, we offer an immediate response service to help during the often-tumultuous legislative process. Our materials have been used to lobby decision makers in matters ranging into the billions of dollars, at both the federal and state levels.

AEG's industry impact analysis also provides a detailed description of an industry's link to more than 500 other industries. By noting which other industries and corporations are affected, you can determine where to build allies to respond to legislative proposals impacting your industry or firm.

Assess the Impact on Taxes
The economic impact model measures your industry's total effect on sales, jobs, and income. As a final link in the chain of calculations, our tax model translates this industry information into the resulting state and local tax collections with detail on each major tax.

In evaluating legislative proposals or regulations, one strong advantage of the tax model is its ability to compare the combined loss in all taxes with any gain in collections from a particular tax or other proposal. In some cases, we can show that a new tax or tighter regulation would cause a greater loss in other tax collections, proving it unproductive for government.

Back Up Your Analysis with Comprehensive Support
We know how to use economic impact analysis to develop key arguments for you and your allies and to rebut those of potential adversaries. Our economists are experienced in testifying before public forums and speaking to elected officials and the media, and can support your economic arguments full time during a crisis.

BriefingsNet is a trademark of American Economics Group, Inc.


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