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Figure 2: Direct, Indirect, and Induced Impacts <br />Although most economists agree that indirect and induced effects, or "multiplier" effects, <br />exist, most economists also concur that such effects are difficult to measure. Patterns of <br />spending and employment among suppliers and employee households often vary over time <br />and from one region to another. DTA used the web application of the Impact Analysis for <br />Planning ("IMPLAN") economic modeling system for its analysis. IMPLAN is a nationally <br />recognized input-output model that can be used to estimate the impacts of new <br />development on the economy through the use of an economic multiplier analysis that is <br />applied to individual counties (e.g., Orange County). <br />The IMPLAN model can be envisioned simply as a large spreadsheet with hundreds of <br />industries (plus the household sector) arrayed across the top as producers and the same <br />industries and households listed down the side as consumers. Each million dollars (output) <br />in spending by any one consumer (i.e., the Project) is allocated across the producing <br />industries from which it buys goods and services. These producing industries, in turn, <br />spend money buying goods and services from their own distinct sets of suppliers. Thus, the <br />IMPLAN multiplier model allows one to gauge the effect of each dollar expended by an <br />industry as it diffuses through a regional economy. Furthermore, it allows one to translate <br />the overall regional impact of spending into jobs and employee compensation. Please refer <br />to Figure 3 for a graphical representation of the multiplier effect. The multiplier factors <br />available to determine indirect/induced impacts are intended to reflect impacts for entire <br />areas within the County. <br />City of Santa Ana September 27, 2023 <br />Economic Impacts Resulting from the Proposed Related Bristol Specific Plan <br />Exhibit 10 3 <br />