Building Economic Models: A Week of Progress & Innovation
Hello, I'm Connor Liebman, a Data Analyst at Ivanhoe Development. I'm excited to share with you some of the innovative work we've been doing in economic modeling. At Ivanhoe, we've been working hard to refine our economic models to better serve our clients. Our goal? To provide tools that demonstrate the fiscal impacts of programs and highlight the significant savings and positive community impacts.
Let's take a look at what we've accomplished this week.
The Foundation: Consistent Templates
We started by developing a consistent template for our economic models. This template is the backbone for all our economic models, ensuring uniformity and ease of comparison. Here's what we've included:
1. Fiscal Impact Analysis: This section quantifies the financial implications of running various programs. We assess costs, revenues, and net fiscal impacts, clearly showing a program's financial performance.
2. Program Savings: Here, we highlight the direct and indirect savings the programs generate. This includes cost savings from preventive measures, efficiency improvements, and reduced dependency on public services.
3. Community Impact: Beyond the numbers, we emphasize the broader positive impacts on the community. This includes improvements in health, education, and overall quality of life.
Scenario Comparison: Showcasing Value
A key feature of our models is the ability to compare scenarios with and without our client's involvement. This comparative analysis underscores the value added by our clients' programs, offering a compelling narrative for stakeholders and funders.
1. Baseline Scenario: We establish a baseline that depicts the current state without the program's intervention. This serves as a control, allowing us to measure the program's true impact.
2. Intervention Scenario: We then model the scenario with the program in place. This includes all anticipated financial and non-financial changes resulting from the program's implementation.
3. Impact Assessment: By comparing these scenarios, we can quantify the program's effectiveness and demonstrate how our clients' initiatives lead to tangible improvements and cost savings.
Customization for Clients: Flexibility Meets Consistency
While consistency is critical, we also recognize the need for customization. Each client has unique needs and operates in different contexts. Our models are designed to be flexible, allowing us to tailor them to specific client requirements. This week, we've enhanced this flexibility, ensuring our templates can easily accommodate various program types and community contexts.
By developing consistent, customizable, and impactful economic models, we empower our clients to demonstrate their value clearly and convincingly. We're excited about these refined models' potential to help our clients achieve their goals and make a positive difference in their communities.
As we refine our approach, we can't wait to see the real-world results these models will help our clients achieve. And speaking of real-world applications, let me give you a sneak peek into how we're putting these models into action.
Putting Our Models to Work:
Our recent work has focused on developing two key types of economic models that demonstrate the power and versatility of our approach:
Public Service Cost Analysis Model: This model aims to provide detailed cost estimates for public service responses to various community situations. It breaks down expenses into personnel time, equipment usage, administrative costs, and support services. By offering a comprehensive view of operational costs, this model helps public agencies understand the financial implications of their services and identify areas for potential cost savings or resource optimization through nonprofit outreach programs.
Health Services Impact Model: We've developed a model that analyzes the economic impact of expanding primary care services to underserved populations. This model projects potential cost savings by comparing preventive care expenses against those of emergency services. It also has long-term benefits such as improved chronic disease management, reduced hospitalizations, and increased productivity. The goal is to demonstrate how investing in accessible healthcare can bring significant economic benefits and improved community health outcomes.
