Introduction to Economic Impact Analysis
49 Exeter Street
This is a five week introduction to the practice of economic impact analysis, with a
primary focus on the estimation of secondary and induced impacts from the construction
and operation of new facilities such as office buildings, highways, power plants, etc. The
focus of the course is on the basic theoretical approaches to regional economic impacts
and the application of widely used economic impact analysis models.
NOTE: This course will require you to be able to access and run economic analysis
software. The software will be available only in the Muskie School Student Lab on the
6th Floor of the Law School Building. Three assignments will be required, and must be
completed within the one week available for each assignment.
Text: Readings Package (Available from the USM Bookstore)
"Regional and Inter-regional Input Output Analysis" in Isard, et. Al. Methods of Inter-
regional and regional Analysis. (Ashgate, 1998) pp. 41-134.
"Economic Base Models" and "A Prototype Model" in Treyz, George Regional
Economic Modeling: A Systematic Approach to Economic Forecasting and Policy
Analysis. (Kluwer, 1993). Pp. 1-168.
Week 1 The Basic Theory of Regional Impacts
Topics: Economic Base Theory
Introduction to Input-Output Analysis
Readings; Treyz, Economic Base Models and "A Prototype Model"
Week 2 Input-Output Analysis and the Regional Purchase Coefficient
Topics: Input-Output Analysis
Regional Purchase Coefficients
The Five-Block Model
Introduction to REMI Software
Week 3: Exercise 1: REMI Analysis 1:
Week 4: Exercise 2: REMI Analysis 2
Introduction to IMPLAN
Week 5: Exercise 3: IMPLAN analysis .