Difference between revisions of "Economic output"
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== The relevance of this subject == |
== The relevance of this subject == |
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| − | The models economists use to measure the impact of a spatial development project or security threats are based on the (measurable) effects of different types of economic output (like an in- or decrease in costs, revenues, income and jobs). Since these types of output are of essential value in the calculations |
+ | The models economists use to measure the impact of a spatial development project or security threats are based on the (measurable) effects of different types of economic output (like an in- or decrease in costs, revenues, income and jobs). Since these types of output are of essential value in the calculations and are not without limitations, it is relevant for the urban planner to gain insight in the different types of economic output used in order to be able to make well-balanced decisions when it comes to security threats, security measures and urban development projects in general. |
==Definition of economic output== |
==Definition of economic output== |
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Revision as of 12:24, 29 August 2012
Contents
Economic output
Like any investment project, urban development projects affect the level of economic activity in a given area (economic impact). These impacts may be viewed in terms of economic variables such as business output, wealth, gross value added, total employment, public income & expenditures and total employment, also referred to as 'economic output'. Any of these output measures can be regarded as an indicator of the improvement in the economic well-being of the region in question.
The relevance of this subject
The models economists use to measure the impact of a spatial development project or security threats are based on the (measurable) effects of different types of economic output (like an in- or decrease in costs, revenues, income and jobs). Since these types of output are of essential value in the calculations and are not without limitations, it is relevant for the urban planner to gain insight in the different types of economic output used in order to be able to make well-balanced decisions when it comes to security threats, security measures and urban development projects in general.
Definition of economic output
Literally, economic output can be defined as "the productivity of a country or region measured by the value of goods and services produced"[1]. Economic output, though, can also be regarded as the 'measurable' part of the economic impact of an investment project, since the statistical and economic models used to measure the economic impact are based on simplified versions of the truth, and hence not perfectly capable to measure the complete economic impact[2].
Types of economic output
Clickable map of different types of economic output:
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Limitations of economic output measures
- The public income and expenditures are included as economic output, while they could be considered to be "˜financial output".
- The various measures of economic impact are overlapping[3]. An increase in business activity, for example, will generate income for its employees, profit for its owners and tax income for the public authorities. For this reason, the different measures cannot be added together to calculate the total economic impact.
- Social impact "includes the valuation of changes in amenity or quality of life factors (such as health, safety, recreation, air or noise quality)"[4]. Some economic tools (e.g., social cost-benefit analysis), however, still try to attempt to quantify and monetarize these social impacts, but there are limits to quantify for example quality of life. Therefore, economic output measures are by definition different from the broader social impact measures.
Related subjects
See clickable map:
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Footnotes and references
- ↑ Wiktionary.org http://en.wiktionary.org/wiki/economic_output
- ↑ A famous example is the problem of causality: did the investment lead to an increase in economic activities or the other way around?
- ↑ B. and G. Weisbrod (1997). Measuring economic impacts of projects and programs. Economic Development Research Group.
- ↑ Ibid.
MAP
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