Document Type

Other

Publication Date

12-1-2009

Keywords

economic multipliers, employment, community impacts

Extension Number

ExEx 5075

Department

Economics

Description

Determining the impact of community development or business development projects, in both monetary and employment terms, is one of the greatest desires of those involved in or directly affected by the projects. It is often said that a single new dollar spent in the community has an impact of seven, or that a new dollar is worth $7 to the community. Others believe that the impact is much less. This Extension Extra is written to define multipliers in simple terms and show how multipliers may be used to determine economic and employment impacts on a community. A discussion of the term turnover will also be included, as the terms multiplier and turnover are often confused.

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