Reference no: EM13940352
Demonstrate an understanding of input - output analysis in relation to matrix structure, regionalising the matrix, matrix inversion and 'demand shock' scenario modelling
Scenario: Major new retail, entertainment and office complex in central Darwin
Construction Phase
Year 1 - $22 Million
Year 2 - $18 Million
Model the economic benefits for Darwin (C) and Northern Territory (STE) and present results in terms of employment, output, wages and salaries and value-added.
Explain industrial and consumption effects and address the differences between type 1 and type 2 multipliers.
Are construction phase benefits ongoing?
Operational Phase
Once the construction of the retail, entertainment and office complex is complete it is estimated that the site will support the following jobs:
- Retail Trade:85 jobs (it is important to note that this includes a business that is simply relocating from another site in Darwin...this business has previously employed 20 people; at the new site this will increase to 25 people)
- Cafes and Restaurants:35 jobs (Food Services sector)
- Cinema and Gallery:25 jobs (Arts and Recreation Services sector)
Model the operational phase economic benefits for Darwin (C) and Northern Territory (STE) and present results in terms of employment, output, wages and salaries and value-added
Summarise all construction and operational phase impacts and provide commentary regarding whether the results are likely to overestimate or underestimate the benefits for the Darwin economy and why (hint: consumption impacts).
As part of the commentary also detail the assumptions that underpin an input - output approach and (for bonus marks) explain how this type of economic impact analysis could be improved.
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