Public Policy and Economic Analysis
The dynamic nature of today’s economy presents policy makers, businesses, and investors with significant opportunity, provided they understand the effects of change.
Whether the change stems from proposed legislation, a business expansion, demographic shifts, loss of a major employer, or any variety of sources, our team can provide the rigorous and unbiased research that leaders need for informed decision making. We do so using advanced techniques that combine:
Sophisticated economic models that project future investment, consumer expenditures, residential and industrial development, employment, and other drivers of both economic activity and tax revenue.
State-specific fiscal models that estimate the tax revenue (from state, local, and federal taxes) associated with different scenarios.
State-specific expenditure models that incorporate both changes in demand for services, and changes in prices.
From the economic impact of agricultural output or invasive species to the strategic importance of natural resources, analysis of agriculture and natural resource issues can be challenging. The experts at AEG have real-world experience with analysis required to carefully and conservatively complete analyses in each of these areas. We use a clear, written methodology that can be shared within a private board meeting or with the public in order to support common understanding.
These studies quantify and compare some indicator of interest across multiple geographies. For example, benchmarking studies allow government officials to know if their state has competitive tax burdens or how their students’ performance on tests ranks nationally. Business climate studies factor in all the costs that matter to businesses and allow entrepreneurs to make location decisions and policy makers to make decisions that improve the business climate.
New projects or policy changes produce both positive and negative outcomes, including opportunity costs (or what could have been done instead). Cost-Benefit Analyses allow policy makers, businesses, and citizens to understand fully the benefits and costs of a new project or policy change compared to the status quo. These analyses help policy makers make decisions about whether a project should go forward or a law should be passed.
AEG’s economic impact analyses estimate the employment and/or earnings impact of an event, program, project, or institution within a defined geographical area. Whether evaluating an existing institution or a potential new development, economic impact studies help policy makers, businesses, and community members understand how a business, project, or special event affects the area’s economy.
Our fiscal impact studies quantify the impact of a new law or a new or existing business, institution or event on revenue or expenditures of a government municipality. These studies allow government officials to effectively evaluate or plan for a new development or project that affects tax revenue, service fees, or the cost of providing services.
Policy Area Expertise
K-12 financing is a large part of local and state government budgets. AEG has the experience and expertise to model changes to education financing and identify how these changes will impact the budgets of governments, schools, and tax payers.
AEG has expertise in the economics of the energy market and the regulatory environment under which utilities operate. Our understanding of the energy industry allows us to model changes to the regulatory environment, such as laws limiting carbon emissions, and identify how these changes would affect utilities, rate payers, and taxpayers.
We further specialize in tracking the transition from internal combustion engine (ICE) vehicles to electric vehicles (EV). We combine our deep knowledge of US and state energy policy with our market and industry analysis team’s automotive experts to bring to bear an unmatched level of analytical knowledge. This multi-disciplinary approach helps us to better analyze and predict policy directions based upon what’s happening with consumers, manufacturers, and dealer groups in the market.
The cost of and access to affordable health insurance is a growing concern. The health insurance market is complicated, and AEG understands the economics and regulatory environment of health insurance. This allows for economic modeling and qualitative assessments of changes to the health insurance market.
Anderson Economic Group has national experience in studying how policies and regulations affect residents and communities with regard to housing affordability and availability, homeowner tax impacts, local tax base considerations, worker commutes and transportation, housing values, and much more.
Small tax policy changes can mean big changes in the amount individuals or businesses owe in taxes, and tax burdens can vary by size of business or among industries. AEG has expertise in tax policy and can estimate how a tax change will impact the tax burdens borne by businesses and/or individuals. AEG tax policy analysis allows trade associations, business groups, and individuals to understand what policies affect them most and to use the credible information we provide in the political arena.
Rigorous Methodology; Credible Results
Anderson Economic Group insists on a rigorous methodology for our economic and fiscal analyses. In particular:
- We use custom simulation models that are specifically tailored for each project.
- We do not use “black box” models that are undocumented, or simply plug in “multipliers” that come from other sources.
- We properly account for direct and indirect effects, substitution or displacement of existing activity, and migration of customers and workers to new locations.
- We do not use hidden “multipliers,” double-count benefits, ignore costs, or otherwise exaggerate results
- Our insistence on these standards results in a high-quality analysis, on which knowledgeable stakeholders will place a high degree of credibility.
For more information on retaining Anderson Economic Group, please see Engaging our Services.
CEO Patrick Anderson, discusses the Public Policy track record at AEG
Anderson Economic Group
Anderson Economic Group Consultants are real people analyzing real world data.
We work one on one with you to identify unique challenges and apply industry expertise to solve your most complex business problems.