Benefit-Cost Analysis

Urbanomics is up to date with the requirements of the Federal Benefit-Cost Analysis Guidance for Discretionary Grant Programs for the 2022 Infrastructure Investment and Jobs Act.
 

Urbanomics is highly proficient in evaluating the economic and fiscal impacts of policies, capital investments, and operations. Using industry-leading input-output modeling software—including IMPLAN, RIMS II, and REMI—we analyze how spending moves through the economy, measuring its ripple effects on local business revenues, GDP, jobs, and wages.

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Beyond input-output modeling, we develop custom fiscal analysis models to assess municipal tax benefits, ensuring they reflect each client’s unique tax structure. Our models account for property taxes, retail sales and hotel taxes, and estimated income taxes from new residential developments. Unlike black-box models, our approach maintains transparent formulas for ease of external review. Additionally, our benefit-cost analyses (BCAs) incorporate broader impacts, such as travel-time savings, prevention of loss of life or injury, and qualitative effects on social and cultural institutions.

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A key part of our approach is clear, accessible communication of study results. Since cost-benefit analyses often inform decision-making by committees who may not be versed in the subject matter or methodologies used, we present results in short, easy-to-understand memoranda or illustrative presentations. Our deliverables emphasize key findings while ensuring transparency in assumptions, data sources, and methodology.