Monday, November 25, 2013

Three economic impact studies

1. San Francisco to "begin economic analysis of chain stores".  

The city’s Planning Department is close to hiring a firm to study the “economic implications of formula retail uses” and “the effects of formula retail uses on community vitality and character.”
I bet they'll find that chain stores have a negative economic impact.  Anybody want to place a friendly wager?  (Note - this, of course, doesn't mean they actually have a negative impact.  That's only what the study will claim.)

2.  The economic impact of the MMA in New York

Legalizing mixed martial arts events in New York State would generate more than $68 million in economic activity per year, according to a UFC-commissioned study released Thursday morning.
Bringing in MMA would provide an economic impact, but this estimates seems inflated.  If UFC brings in tourists who spend an average of $200 visit, and that effect is multiplied by 2, that would mean they need to bring in 170,000 visitors annually.  That sounds too high.  It would have a positive economic  impact from the tourists who visit.  However, they also include "UFC gyms".  That would only take money away from other gyms (or other local businesses), so that shouldn't be included in an economic impact statement.  

3. Economic Impact of Nonprofit Arts in Dayton, Ohio

PDF here

Short story here

This study seems to ignore the substitution effects.  I.e., if these arts organizations didn't exist (and the jobs didn't exist), wouldn't people just spend their money elsewhere in Dayton?  Not all would, but many would, which means other organizations would gain jobs.  The arts certainly have an economic impact, but this study seems to overstate that impact. 

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