Services
Evans, Carroll & Associates also offers a variety of other consulting services in the following categories:
- Economic Analysis of Infrastructure Projects
- Economic Impact Studies
- Revenue and Tax Analysis for State and Local Governments
- Industry Econometric Models and Product Forecasts
- Economic Effects of Pending Legislation
- Price Forecasting Models for Construction Costs by Type of Construction and Individual Cost Components
Economic Analysis of Infrastructure Projects
Infrastructure analysis uses the combination of (a) demand-side analysis to determine the increase in jobs from investment, and (b) supply-side analysis to determine how the increase in productivity expands the overall capacity of the economy and boosts the standard of living.
On a national level, infrastructure analysis requires the use of a macroeconomic model to show how a faster growth rate in productivity reduces inflation and interest rates and boosts total capacity, hence increasing employment and real income.
On a regional level, increased expenditures on the transportation system would clearly create new jobs in that area. In addition, however, it would boost productivity in that region,enabling firms in the area to operate more efficiently, gain market share from competitors, and boost employment. It would also serve as a magnet to attract more business from other areas that have not benefited from an improvement in transportation facilities. Such developments generally occur over several years, as opposed to the short-term impact of increased jobs from new construction projects.
Other Economic Impact Studies
The RIMS II model can be used for a variety of other economic impact studies. For example, a new convention center might attract more visitors and tourists and result in construction of new hotels, restaurants, shopping malls, and entertainment venues. One major example is the calculation of the economic impact of infrastructure projects. A new sports stadium would also attract more patrons, who would then utilize restaurants and other entertainment facilities in the area. The economic impact can be determined at the national, state, or county level, or by individual congressional districts.
The results of economic impact studies can also be extended to show the change in Federal, state, and local tax receipts. Evans, Carroll has done several studies showing the economic impact of Indian gaming casinos, showing the changes in employment, tax receipts, and the reduction in the unemployment rate for various Indian nations.
Revenue and Tax Analysis for State and Local Governments
The revenue effect of changes in specific tax rates, such as changes in excise taxes on alcohol, tobacco, or gasoline, can be calculated for the overall state or local economy, and also by income classes. We have also calculated the effect of changes in broad-based tax rates, such as personal income, corporate income, or general sales taxes. Evans, Carroll has also done studies on how much revenue the government is losing to Internet sales.
These results can also be extended to show the differential impact on state tax revenues when one state raises excise taxes but a neighboring state does not. In many cases, the state raising the tax rate not only loses sales of the taxed item, but shoppers switch other purchases to the neighboring state.
Industry Econometric Models and Product Forecasts
Evans, Carroll will build an econometric model designed to predict sales, shipments, or orders for individual product lines for an individual firm or industry association. Individual equations are estimated from data supplied by the client, and tied to macroeconomic and industry forecasts. Forecasts can be prepared on a quarterly or annual basis.
Economic Effects of Pending Legislation
Proposed or pending legislation may have a beneficial -- or a negative -- impact on your company or industry. We will provide estimates of this impact on employment, output, and tax revenues. The economic impact analysis can be prepared either at the national level or for individual states or Congressional districts. Where appropriate, testimony is delivered before various Congressional committees.
Price Forecasting Models for Construction Costs by Type of Construction and Individual Cost Components
During the huge runup in construction costs during the 2005-2007 boom, we accurately predicted that these prices would return to normal levels once the growth rate declined. We saved one government agency $200 million by telling them in 2007 to wait until construction and materials prices declined in 2008.