Other economic tools
Apart from the commonly used economic tools such as economic impact studies, social cost-benefit analysis and business cases, there are other types of commonly carried out economic analyses (other economic tools), which are briefly addressed below.
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Relevance for the Urban Planner
Knowledge about some frequently used economic models helps the urban planner to systematically survey all the relevant (socio-economic) impact caused by an urban development and security threats. This insight will help the responsible urban planner to make the best choices from an socio-economic point of view. On this page we limit the explanation to a short definition. For more information on economic tools you can contact Decisio BV in the Netherlands.
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"[3]. "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"[1]. "A feasibility study is the private sector analogue of the social cost-benefit analysis" [1].
Related subjects
Urban planning processes employ a host of other economic tools/models:
- Social cost-benefit analysis
- Input-output analysis
- Economic impact study
- Business case
- Economic tools
See also the clickable map below:
Other related subjects:
