Glossary of Terms
Economic Impact Analysis: Economic impact analyses measure the jobs and economic activity generated through new expenditures in an economy, such as expenditures on ecosystem restoration projects. Economies are complex webs of interacting consumers and producers in which goods produced by one sector of an economy become inputs to another, and the goods produced by that sector can become inputs to yet other sectors. Thus, a change in the final demand for a good or service can generate a ripple effect throughout an economy as businesses purchase inputs from one another. Economic impact analysis capture these multiplier effects to estimate the direct and secondary jobs and business activity supported by project spending.
Job-years: Job-years measure the total number of annualized full and part-time jobs accumulated over the duration of a restoration project.
Labor Income: Labor income measures the wages and salaries earned through the jobs that are supported by project expenditures. Labor income includes employee wages and salaries and payroll benefits, as well as the incomes of sole proprietors.
Economic Output: Economic output measures the total estimated value of the production of goods and services supported by project expenditures, and is equal to the sum of all intermediate sales (i.e., business to business sales) and final demand (i.e., sales to consumers).
Value added: Value added is equal to the sum of the values added to a product at each step of the production chain, and is thus a measure of the value of the production of goods and services net of intermediate expenditures (i.e., value added = economic output – intermediate expenditures). Value added is an equivalent measure to Gross Domestic Product (GDP), the measure used to value the goods and services produced by the U.S. economy each year. Thus, value added is the most appropriate measure to explain how ecosystem restoration projects contribute to GDP.
National Economy: The National economy includes the flow of goods and services within the entire United States.
Western States Economy: For BLM case studies, economic impacts are considered at the western states level. The BLM western states include Arizona, California, Colorado, Idaho, Kansas, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, and Wyoming.
Local Economy: The local economy for each case study is defined as the set of counties surrounding each project site that comprise a cohesive economic region including communities within a reasonable commuting distance of the site.
2014 Dollars: Case study projects and associated project expenditures occurred in different years. To make all expenditures and impacts comparable, expenditures were inflated to 2014 dollars using Bureau of Economic Analysis output deflators.