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Overview of Some Alternative Methodologies for Economic Impact Analysis

Economic impact analysis using inter-industry models provides a method to evaluate the effects of a project or proposed policy change. This paper briefly summarises the applicability, structure and limitations of three techniques frequently used in economic impact analysis:
• using simple Input-Output analysis (I-O);
• Input-Output Econometric modelling (IOE); and
• Computable General Equilibrium modelling (CGE).

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Last reviewed: Dec 20, 2006, Last modified: Nov 27, 2006