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.
the Best Models and Methods Available
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.
Quickly to Legislative Proposals
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.
the Impact on Taxes
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.
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