Fiscal Impact Models For Local Economies

Abstract

Fiscal impact analysis refers to the rather broad range of economics studies which consider the public sector effects of various economically related aberrations. Such analyses are typically conducted within broader impact analyses including economic, demographic, environmental, and sociological components. This reflects not only the fact that sound decision-making requires information on all of these dimensions, but also the fact that these dimensions are frequently interrelated and must be projected simultaneously.This paper develops a conceptual framework within which local fiscal impact models may be compared and contrasted. The purpose is to shed light on the strengths and weaknesses of the models and their appropriate range of applications. This information should be useful to all those who have a stake in and who influence the viability of their local economy.