Learning how to multiply

Meter, Ken

doi:10.5304/jafscd.2010.012.014

Cited by 5 publications

(5 citation statements)

References 1 publication

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“…The value of LM3 ranges between 1.00 and 3.00, where 1 equates to spending the whole initial sum outside of the local area, and 3 if all spending across the three rounds stays local (Sacks, 2002). Consequently, if economic actors decide to spend locally (which is partly a result of their own decisions, and partly reflects the accessibility of goods and the structure of the operating environment), the local economic impact of an initial sum of money rises (Bengo et al, 2016; Meter, 2010). Apart from measuring the ratio of money spent locally, LM3 calculations also enable tracking which types of suppliers (or staff) re-spend money within the target area (Sacks, 2002).…”

Section: Methods and Sample Descriptionmentioning

confidence: 99%

What are the economic impacts of short food supply chains? A local multiplier effect (LM3) evaluation

Kłoczko-Gajewska,

Malak-Rawlikowska,

Majewski

et al. 2023

European Urban and Regional Studies

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Shortening food supply chains attracts increasing support from policymakers, to improve returns to farmers and stimulate rural development. However, there is a lack of empirical evidence regarding the impacts of short food supply chains on local economies. To address this, the article quantifies the impacts of short food supply chains on local economies, using the Keynesian-based Local Multiplier 3 method (LM3), applied to a unique dataset of 122 farm businesses from five European Union countries (France, Hungary, Italy, Poland and the United Kingdom). Estimations cover 305 market chains, comprising both short and long food supply chains, in which sampled farmers participate. The results indicate that the revenues from farm production remain largely within local economies, generating a substantial multiplier effect (LM3 > 2). This effect stems from purchases of farm inputs locally including, in the first instance, hiring local labour, as well as the expenditures of local suppliers that re-spend part of their revenues within the local area. The multiplier effects of short food supply chains are similar to long food supply chain equivalents as both use largely local labour and source tradable inputs locally. In shaping food chain policy a broader set of socioeconomic benefits to local development from selling through short food supply chains should be considered.

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Section: Methods and Sample Descriptionmentioning

confidence: 99%

What are the economic impacts of short food supply chains? A local multiplier effect (LM3) evaluation

Kłoczko-Gajewska,

Malak-Rawlikowska,

Majewski

et al. 2023

European Urban and Regional Studies

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“…Finally, and perhaps most importantly from a community development perspective, the results of an I-O based analysis have limited utility to community practitioners and stakeholders because the calculation process is often viewed as a "black box," using modeling equations that are not readily understood by community members or even systems-level stakeholders (Meter, 2011). The very people being studied seldom understand how I-O results were derived, although they are often asked to provide sensitive data to modelers and then to accept findings on faith.…”

Section: Practical Limitations To Common Approachesmentioning

confidence: 99%

“…In fact, in his study of Italy, Putnam argues that civic engagement is not a function of wealth, but instead that economic development and effective government are consequences of social connectivity and capital (1993). Since the economic multiplier is a measure of how many times a dollar "turns over" inside a given geography before leaving, one would expect that the stronger the sense of community connectedness, the greater the likelihood that financial transactions will cycle money among community members (Meter, 2011).…”

Section: The Economic Value Of Connectivitymentioning

confidence: 99%

Building Multipliers, Rather than Measuring Them: Community-Minded Ways to Develop Economic Impacts

Goldenberg¹,

Meter

2019

J. Agric. Food Syst. Community Dev.

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As co-authors of the USDA Agricultural Marketing Service's (AMS) Economics of Local Food Systems Toolkit featured in this special issue, we pose the question of whether standard input-output (I-O) modeling approaches are appropriate for use in community foods work. In this reflective essay, we discuss the underlying data used in the most common assessment tools and suggest that they are not precise enough for estimating the impacts of emergent small local food firms amid rapidly changing contexts, even when modified following generally accepted methodologies. Since the basis of I-O modeling is the understanding that the various sectors of an economy are linked-an output from one sector may be an input to another-we are proposing approaches that make these community linkages more visible to food system practitioners. We wish to advance the idea that placing the focus on how communities build robust multipliers may be a better use of resources than generating multiplier calculations that hold questionable value. We suggest that methodologies derived from social network analysis (SNA) will prove increasingly useful in the impact(s) discussion.

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“…Essentially, economic multipliers measure how a specific business or sector interacts with the prevailing infrastructure (Meter, 2010). Often the net impact of local food investments is relatively small compared to the prevailing economy, so the most successful practitioners insert new functions into the software to ask questions that have meaningful answers.…”

Section: Local Food Economy Assessmentsmentioning

confidence: 99%

Emerging Assessment Tools To Inform Food System Planning

Freedgood

Pierce-Quiñonez

Meter

2011

JAFSCD

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Food system planning is an emerging field engaging planners and planning organizations, civic leaders, citizens, food policy councils, and others interested in creating more sustainable food systems. Planning practices are being developed to address the complex soil-to-soil food system, which spans production to consumption to reuse and recycling of waste. Community engagement is critical to fostering interactions within the full spectrum of food system stakeholders -from farmers and ranchers to planners and local officials to individual and institutional consumers. A growing body of assessment tools is being developed to inform this process. As most of these tools are relatively new, there is little research that addresses the different methodologies or evaluates their use as planning tools. This paper outlines a variety of approaches and suggests further research to evaluate their efficacy.

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Learning how to multiply

Cited by 5 publications

References 1 publication

What are the economic impacts of short food supply chains? A local multiplier effect (LM3) evaluation

What are the economic impacts of short food supply chains? A local multiplier effect (LM3) evaluation

Building Multipliers, Rather than Measuring Them: Community-Minded Ways to Develop Economic Impacts

Emerging Assessment Tools To Inform Food System Planning

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