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Justin Kamm said on October 2nd, 2012 at 8:40 am

Finally – someone who understands “economic impact”. Well said Brian.


Ben said on October 2nd, 2012 at 2:09 pm

I understand your point, and too often the region definition is vague in EI articles. However, its widely accepted among academics that the economic region for calculating impacts is the metropolitan area, in this case Phoenix Metro. There are also solid arguments for EI to be only calculated at the state level, which I disagree with, but there is some evidence for it. This is due to the concept of leak. The tax revenue for Glendale and the wages for workers living in Glendale, is about the only new money that does not leak out of Glendale almost immediately. What purchases made during a visit to Jobing.com Arena are actually produced locally (in the City of Glendale)? How many employees and business owners live within the city limits? As you expand the economic region, you begin to decrease the amount of leak.

Also, the original author does have a point even if you only consider Glendale as the region. The largest EI factor is hotel nights (both from an the room rate and from the length of stay increasing other spending), and someone in Phoenix is unlikely to stay overnight in Glendale.

Brian Connolly said on October 2nd, 2012 at 4:10 pm

@Ben – Yes, there is obviously a lot more that goes into properly analyzing/measuring economic impacts, and in this post I didn’t even want to get into a discussion of the magnitude of impacts. My intent was only to highlight the fact that the academic focus on metro area is rarely in line with a local politician’s perspective. A City Council member sees their City competing with other municipalities within their metro area to maximize their slice of the pie. When they commission an economic impact analysis, they want to know the incremental jobs/income/taxes that are created in their City by a project, not the effects on the overall metro area economy.

Christie said on March 22nd, 2014 at 2:40 am

Great article.