AN INPUT-OUTPUT ANALYSIS OF THE ECONOMIC IMPACT OF I-80 ON EVANSTON, WYOMING

THE TWO MAJOR PURPOSES OF THIS STUDY ARE TO ASSESS QUANTITATIVELY THE ECONOMIC IMPACT DURING 1967 OF A NEW INTERSTATE HIGHWAY ON EVANSTON, A SMALL MUNICIPALITY IN SOUTHWEST WYOMING; AND TO DETERMINE WHETHER THE BY-PASSING OF THE CITY BY THE NEW INTERSTATE HAD AN ADVERSE IMPACT ON THE LEVEL OF ECONOMIC ACTIVITY IN THE MUNICIPALITY. IN OCTOBER OF 1968, EVANSTON WAS BY-PASSED WHEN THE MARGINAL ROUTE AROUND THE CITY WAS OPENED TO TRAFFIC. INPUT-OUTPUT ANALYSIS, A METHOD OF ECONOMIC ANALYSIS WHICH TRACES INTERACTIONS AMONG SECTORS (INDUSTRIES) OF THE ECONOMY, WAS THE PRINCIPAL ANALYTICAL TECHNIQUE EMPLOYED FOR THIS STUDY. THE INPUT-OUTPUT TABLE (THE ANALYTICAL FRAME OF INTER-INDUSTRY ANALYSIS) IS AN ACCOUNTING DEVICE OF INDUSTRY SALES AND PURCHASES IN THE ECONOMY DURING A SPECIFIED TIME PERIOD. THE TABLE SHOWS HOW THE OUTPUT OF EACH SECTOR WAS DISTRIBUTED AMONG ALL SECTORS; AT THE SAME TIME IT SHOWS THE INPUTS TO EACH SECTOR FROM ALL SECTORS. FINAL DEMAND RESULTING DIRECTLY FROM THE CONSTRUCTION OF I-80 AND FROM I-80 INDUCED PRIVATE INVESTMENT AMOUNTED TO $1,159,592. THIS FINAL DEMAND GENERATED TOTAL SALES OF $2.5 MILLION, $600,000 OF WHICH WAS SALES OF SERVICES BY HOUSEHOLDS. TOTAL SALES GENERATED BY I-80 INDUCED TRAVELER SPENDING, I-80 CONSTRUCTION, AND I-80 INDUCED PRIVATE INVESTMENT TOTALED $2,869,574. THESE SALES REQUIRED 77.59 EMPLOYEES AND PROVIDED $663,411 OF HOUSEHOLD INCOME. THE THREE I-80 INDUCED ACTIVITIES GENERATED OVER 10 PERCENT OF THE INCOME THAT WAS GENERATED WITHIN THE FIRST 20 SECTORS IN EVANSTON IN 1967. THE BY-PASSING DID NOT AFFECT EITHER AGGREGATE SALES OR THE SALES OF INDIVIDUAL SECTORS ADVERSELY, BUT IT DID REDISTRIBUTE INCOME AND WEALTH IN THE COMMUNITY. MAINTENANCE EXPENDITURES ON I-80 WILL BE LARGER THAN THEY WOULD BE IF THE OLD HIGHWAY HAD NOT BEEN REPLACED. I-80 INDUCED TRAFFIC WILL CONTINUE TO ADD TO THE DEMAND FOR EVANSTON'S OUTPUT OF GOODS AND SERVICES. AS THIS DEMAND GROWS, ADDITIONAL INVESTMENT IN PLANT AND EQUIPMENT WILL BE NEEDED TO MEET THE GROWING DEMAND. WHILE THESE ITEMS WILL NOT CONTRIBUTE MUCH TO LOCAL ECONOMIC ACTIVITY THEY WILL NEVERTHELESS CONTRIBUTE SOME. /AUTHOR/

  • Supplemental Notes:
    • 161 Pp, 34 TAB, 13 REF, 1 APP
  • Corporate Authors:

    University of Wyoming, Laramie

    Division of Business and Economic Research
    Laramie, WY  USA  82071
  • Authors:
    • Hooker, R W
    • Potter, K R
  • Publication Date: 1970-12

Subject/Index Terms

Filing Info

  • Accession Number: 00202016
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Dec 20 1971 12:00AM