Hunter Input-Output Model
The HVRF makes extensive use of economic models to measure the economic effects of major developments. The Foundation has developed a Hunter Region input-output model to determine the economic impact of major expansions and contractions in the regional economy. It is invaluable for planning, forecasting policy formulation and evaluation.
The model:
- shows how the outputs from each sector of the economy are distributed to each of the other sectors
- shows how the inputs (per unit of output) from each sector are distributed
- allows us to measure the effects of a change in the regional economy by change in: production of each sector, employment in each sector, income generated in each sector.
The model is used to
- calculate tax revenue generated from changes in operations or a new operation
- calculate potential profits resulting from changes in operations or a new operation
- document impacts on the regional economy to help in: securing local government approval for a project, gaining financial assistance, securing government and/or private assistance, advertising the benefits of an existing or potential operation to the community.
Economic impact assessments and the HVRF input-output model
The HVRF uses the technique of input-output (I-O) analysis, and its I-O model of the Hunter Region, to assess the economic impacts of specified development projects in the Region. I-O analysis essentially identifies and evaluates linkages between sectors in the economy. The analysis uses the expenditure by a firm on its final product as a starting point, and then tracks backward through the various sectors in the economy to identify the contribution each sector makes to that final product. As the connections are traced backwards, the analysis is made in terms of the direct (or initial) impacts of the final expenditure and the induced (or flow-on) impacts as all sectors provide inputs to enable the final production. The impacts are quantified using multiplier coefficients derived from the model, in terms of the value of the goods and services (output), income, and the number of jobs which result from production of the specified good or service and the expenditure of salaries and other income earned due to that production. Estimates are also provided for taxation revenues generated for the Federal and State Governments.
For more information about the Hunter I-O Model or economic impact assessments, contact This e-mail address is being protected from spambots. You need JavaScript enabled to view it