Effects describe how economic activity spreads through a region after a change such as new jobs, investment, or industry growth.
There are four main types of effects in Lightcast's models, which may differ from terminology elsewhere.
Lightcast Term | What Other Models Call It | Brief Definition |
Direct Effect | The starting activity being modeled (e.g., new jobs, spending, or output introduced into the economy). | |
Part of Indirect Effect | The first round of supply chain impacts as the initial business purchases goods and services from local suppliers. | |
Part of Indirect Effect | Subsequent rounds of supply chain activity as suppliers purchase from other suppliers (the ripple effect through industries). | |
Induced Effect | Economic activity generated by household spending from wages earned by workers affected by the direct and indirect impacts. |