Difference between revisions of "Other economic tools"
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===Demand analysis=== |
===Demand analysis=== |
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| − | A '''demand analysis''' estimates or predicts the amount of |
+ | A '''demand analysis''' estimates or predicts the amount of a specific good (or service) that consumers are willing and able to purchase. For this, economists use sales estimations, forecasting or a demand model. A typical question that is answered in this type of study is: How will the number of users of an urban object (e.g, a road or an airport) change due to the changes in prices, promotion, reachability et cetera? |
===Financial analysis=== |
===Financial analysis=== |
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===Fiscal impact analysis=== |
===Fiscal impact analysis=== |
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| − | Analogous to a financial analysis of private companies, a '''fiscal impact analysis''' "identifies changes in demands for government utilities and services resulting from some action and estimates the revenues and costs to local |
+ | Analogous to a financial analysis of private companies, a '''fiscal impact analysis''' "identifies changes in demands for government utilities and services resulting from some action and estimates the revenues and costs to local governments to provide these services"<ref>Burchell, R.W. and D. Listokin (1978). The fiscal impact handbook. New Brunswick, N.J. In Stynes, D.J. (1999). ''Economic impacts of Tourism''.</ref>. |
===Feasibility study=== |
===Feasibility study=== |
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| − | "A '''feasibility study''' determines the feasibility of undertaking a given action |
+ | "A '''feasibility study''' determines the feasibility of undertaking a given action. It includes the political, physical, social and economic feasibility. The economic aspects of a feasibility typically involve a financial analysis to determine financial feasibility and a market demand analysis to determine market feasibility". A feasibility study is the private sector analogue of the social cost-benefit analysis" <ref>Ibid.</ref>. |
==Related subjects== |
==Related subjects== |
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Revision as of 12:16, 11 May 2012
Contents
Other economic tools
Introduction
Apart from the commonly used economic impact studies, social cost-benefit analysis and business cases, there are other types of commonly carried out economic analyses, which are briefly addressed below:
Demand analysis
A demand analysis estimates or predicts the amount of a specific good (or service) that consumers are willing and able to purchase. For this, economists use sales estimations, forecasting or a demand model. A typical question that is answered in this type of study is: How will the number of users of an urban object (e.g, a road or an airport) change due to the changes in prices, promotion, reachability et cetera?
Financial analysis
A financial analysis assesses the viability of a business/activity, and aims to answer the question if it is possible to make profit from this activity? This kind of analysis is also referred to as a financial statement or accounting analysis. "It generally includes a short-term analysis of the availability and costs of start-up capital as well as a longer-range analysis of debt service, operating costs and revenues"[1].
Fiscal impact analysis
Analogous to a financial analysis of private companies, a fiscal impact analysis "identifies changes in demands for government utilities and services resulting from some action and estimates the revenues and costs to local governments to provide these services"[2].
Feasibility study
"A feasibility study determines the feasibility of undertaking a given action. It includes the political, physical, social and economic feasibility. The economic aspects of a feasibility typically involve a financial analysis to determine financial feasibility and a market demand analysis to determine market feasibility". A feasibility study is the private sector analogue of the social cost-benefit analysis" [3].
Related subjects
Urban planning processes employ a host of economic tools/models (see clickable map):
Other related subjects:
Footnotes and references
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