JLF’s Roy Cordato, published at investors.com:
The formula is simple and predictable. A special-interest group that stands to benefit from the project funds an economic impact study that provides impressively large “hard numbers” on jobs, wages and additional output that will be generated.
The interest group will then tout the results in press releases that will be picked up by an uncritical media. Ultimately, these studies are meant to influence politicians who will determine the project’s fate.
And influence they do. But here’s the problem with economic impact studies.
Roy’s piece is adapted from his full report about economic impact studies.
