Economic output
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Economic output
Urban project developments have effects on 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 'econonomic 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.
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]. However, economic output can also be regarded as the 'measurable' part of the economic impact of an invest 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
- Notice that the public income and public expenditures are included while they also could be considered to be "˜financial output". Furthermore, 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.
- Economic output measures are by definition different from broader social impacts. Social impacts "include the valuation of changes in amenity or quality of life factors (such as health, safety, recreation, air or noise quality)[4]. Some economic tools, however, still try to attempt to quantify and monetarize these social impacts, but there are limits to quantify for example quality of life.
Related subjects
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.
- ↑ Weisbrod, B and B. Weisbrod (1997). Measuring economic impacts of project and programs. Economic Development Research Group
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