Economic impact analysis

Economic impact analysis is a way to measure how much money a certain event or decision will affect an economy. For example, if a factory closes in a town, an economic impact analysis can calculate how much money the people in that town will lose because of the closure. It can also include calculating how much other economic activity will be lost because of the factory's closure (like people who run businesses that depend on the factory workers, for example). The analysis looks at all of the costs and benefits of the event or decision, and then measures the overall impact it will have on the economy.