Hibbs Brief: The Most Wonderful Time of the Year: Many Retail Stores May Concur
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The Hibbs Institute researchers chose to use IMPLAN V6 model to conduct their estimates. IMPLAN is widely accepted and used extensively by numerous (several thousand)
public and private organizations.
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The direct eect refers to the initial change in demand resulting from new or current expenditures or employment. I-O multipliers are then used to generate changes in other re-
gional economic sectors. Indirect eects represent all changes in a regional industry activity, such as an increase in production and employment, that result from the direct eect
(the eects related to suppliers). Finally, the induced eects measure the impact of household spending within a region due to changes in labor income or compensation received
by workers and business proprietors for both the directly and indirectly impacted regional industries. The sum of these three eects represents the total impact.
Finally, the Hibbs Institute has conducted an economic impact
analysis regarding the winter holiday retail sales in Tyler.
These estimates include the dollar output and employment
generated by the calculated expenses associated with retail
consumption during this year’s holiday season (November
and December). For this purpose, we employed some ocial
figures from the Bureau of Economic Analysis (BEA) and the
U.S. Census Bureau (USCB), and subsector estimates, provided
by Chmura Economics, as the base of our analysis.
The forecasted winter holiday retail sales ($260.1 million)
represent the direct eect and should support about 2,676
jobs in the local economy. These figures were used in a model
to estimate their indirect and induced eects in the Tyler
economy.
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The resulting economic benefits are substantial.
The impact of local suppliers related to retail stores in the
community (indirect eect) would generate $32.0 million and
183 jobs. The impact of all employees’ income (induced eect),
once spent in the locality, would generate $30.2 million and
195 jobs.
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In summary, we estimated that winter holiday retail sales in the
Tyler MSA supports 3,054 jobs (2,676 direct, 183 indirect and
195 induced) and accounts for $322.4 million ($260.1 direct,
$32.0 indirect and $30.2 induced). Overall, retail sales during
winter holidays constitute a very important economic driver
for Tyler’s economy.
The Hibbs Institute wishes our readers very nice and peaceful
holidays. Merry Christmas, and Happy New Year!