Abstract
The Fiscal and Economic Impact Model is an assessment tool which is used to analyze the fiscal and economic consequences of a new development such as a new firm's location or an existing firm's expansion within a community. The Model is based on a cost-benefit analysis (CBA) to examine the fiscal and economic impact that a firm has on a community in terms of measurable tangible costs and benefits. In particular, the purpose of the Model is to estimate the costs and benefits associated with the granting of a property tax abatement to a new or expanding firm. Employing over 240 input variables, the Model differs from a simple financial accounting framework because a much broader range of impacts -- both direct and indirect -are taken into account.
The Fiscal and Economic Impact Model of the Institute for Public Policy and Business Research at the University of Kansas is an extension and refinement of a cost-benefit model originally developed by Dr. David Darling of Kansas State University's Extension. For a detailed description of the Institute's conceptual and technical improvements and refinements, and for a proposed further development, refer to Appendix 1.