The coronavirus epidemic has reset the way we understand and examine the economy. With major changes to employment levels and household spending, plus stimulus checks, increased unemployment benefits, and PPP loans, it is crucial that economic data is updated during this time. With that in mind, IMPLAN is proud to announce the release of ground-breaking data and economic impact models for the COVID-19 era: Evolving Economy - COVID Q2-2020.
If you review the results of an IMPLAN economic impact study, you will not find GDP listed in the results. Naturally the question arises, "What is the GDP?" Within IMPLAN results, that value is actually demonstrated in multiple ways.
Gross Domestic Product (GDP) is defined as the total market value of all final goods and services produced within a region in a given period of time (usually a quarter or year). GDP is the sum of value added at every stage of production (the intermediate stages) for all final goods and services produced within a region in a given period of time. In other words, GDP is the wealth created by industry activity.
“How can $1 of spending support more than $1 in the local economy?”
We get questions like this about economic impact analyses all the time. The answer is very straightforward. The results of an input-output (I-O) analysis are broken down into direct, indirect, and induced effects. The combination of these overarching economic effects often total greater than the initial economic input. Each level of effects captures a different portion of the complete economic portrait. In order to understand the totality of an impact, you must conceptualize how each value is defined and what they represent.
The foundation upon which IMPLAN economic impact analyses are built is the input-output (I-O) model, and the basis for I-O models are multipliers. Multipliers are rates of change that describe how a given change in a particular industry generates impacts in the overall economy (e.g. for every dollar spent in the economy an additional $0.25 of economic activity is generated locally, implying a multiplier of 1.25). What multipliers represent and how they are calculated can vary significantly.
If you’re looking to conduct an economic impact analysis study, chances are someone like you has performed and published something similar using IMPLAN. Conversely, if you’re attempting to study something unlike anything else, between IMPLAN’s data, applications, and knowledgeable customer success and education services teams, you have all the tools you need to get started.
Developed by the United States Forest Service (USFS) in conjunction with the Federal Emergency Management Agency (FEMA) over 40 years ago, IMPLAN boasts an unrivaled history of economic expertise. The USFS remains an active user of IMPLAN today along with a multitude of local, state, and federal government entities, a broad range of renowned academics, economic development entities, professional associations, consultants, and the United Nations.
IMPLAN is a platform that combines a set of extensive databases, economic factors, multipliers, and demographic statistics with a highly refined, customizable modeling system. The foundation upon which economic impact analyses are built is the input-output (I-O) model. Understanding I-O analysis and the assumptions they employ are crucial to properly performing and reporting your own analysis.
Decision makers and business leaders are constantly looking for new ways to make their organizations smarter. Economic insight is key to achieving financial goals. IMPLAN has the technology you need in order to unlock economic opportunity.
So, what is IMPLAN? IMPLAN is a platform that combines a set of extensive databases, economic factors, multipliers, and demographic statistics with a highly refined, customizable modeling system. Together, our application and robust data allows you to:
- Gain insight into an industry's contributions to a region
- Quantify the impact of a shock to an economy
- Examine the effects of an existing or emerging business
- Model the economic impacts of changes to business operations
- Study events specific to the economy of a region’s economy, and more.
IMPLAN data is aggregated from multiple sources and is compiled into a 546-sector scheme and framework. The data sources include the Bureau of Labor Statistics, U.S. Census Bureau, Bureau of Economic Analysis, and more. Non-disclosures exist within these data sources, so our team fills in the gaps left by non-disclosures. Beyond reconciling data sources and filling in for non-disclosures, we add additional value by estimating finer geographic scales—calculating more granular data based on what is existing—and providing inter-county trade flow data.
The data and platform have the ability to perform a number of detailed analyses and provide solutions to an ever-increasing amount of questions. How can IMPLAN provide economic insight for you? Start with a question that you want answered.
It is that time of year again! IMPLAN Data Year 2018 is upon us. Beyond our annual improvements, you will find two significant updates to this year’s iteration of our annual data.
Economic data flows and collects from sources both varied and unique. But which sources are significant and why? And how complex does this world of big data get when it comes to trying to explore the economic landscape? Cue Ms. Frizzle’s “Seatbelts, everyone!” line and let’s take a tour of economic data sources on the Magic School Bus!
Ever since the likes of IBM’s Watson, Google Trends, and Bloomberg Terminal emerged, data-driven decision making shifted from fad to fixture in the business world. But the fundamental shift that big data made in the world of research didn’t change which questions to ask, but rather how we ask those questions. Or, as Douglas Adams might say, you need to really know what you’re asking before you switch on Deep Thought.