Economic Impact Analysis
Economic impact simulations predict the economic effects upon a regional or state economy of a new business location or a new project venture occurring in the state or regional economy.
Economic impact questions that could be modeled by performing an economic impact simulation may include: "What would be the economic impact upon northeast Oklahoma if ABC Corporation spent $25 million to expand its operations in Stillwater?" Another example may include "What would the economic impact be upon southeast Oklahoma if a new hospital was constructed in McAlester?"
Our most recent economic impact study, The Economic Impact of the Oklahoma Manufacturing Sector (Summer 2011), highlights the employment, income, output, tax and population impacts that the manufacturing sector has upon the state of Oklahoma.
The Economic Impact of SWOSU on the state of Oklahoma highlights SWOSU’s contribution to the state’s economy and the Economic Impact of SWOSU on Southwest Oklahoma summarizes how the university contributes to the regional economy.
In policy modeling, the term "counterfactual" is defined as "contrary to the present situation". More specifically, counterfactual simulations model the effect upon a regional or state economy by removing an organization or business from the economy.
Counterfactual questions that could be modeled include: "What would be the effect upon Oklahoma if Tinker AFB were closed in a new round of base closures?" Or, the question might be: "What would be the effect upon southwest Oklahoma if XYZ corporation closed and had to lay off 250 employees?"
Policy modeling predicts the economic impact of a significant policy change upon a regional or state economy. Examples of policy changes that could be modeled include tax rate changes, minimum wage rate changes, environmental standards changes, defense spending changes, etc.
Policy questions that can be modeled by performing a policy simulation may include: "What would be the economic impact upon the OKC metropolitan area if voters approved a 0.25¢ sales tax hike to pay for terminal construction at Will Rogers Airport?"
Tourism Impact Modeling
Tourism impact simulations model the effects that tourism has upon a regional or state economy. These simulations are modeled as the increase in tourism to an area due to new/expanded tourist attractions.
Tourism impact questions that could be answered by running this type of simulation may include: "What would be the economic impact upon the Tulsa metropolitan area if the city revitalized its downtown area to include a remodeled convention center and a new arena for minor league hockey and basketball?" Another sample question that could be answered may be: "What would the economic impact be upon northwest Oklahoma if the state built a lodge at Great Salt Plains State Park?"