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OAQPS Economic Analysis Resource Document

4.1 Purpose and Use

As mentioned above, the industry profile provides the foundation for the development of the economic analysis. For a particular industry, or group of industries, the major purposes of the profile include the following:
  1. to assemble, describe, and present all relevant financial and economic characteristics and trends--past, present, and future;
  2. to provide an understanding of the industry organization, including market structure and the conduct and performance of affected firms;
  3. to identify the key factors and trends that may influence the nature and magnitude of the economic impacts and that may be addressed in the economic analysis (e.g., significance of international trade); and
  4. to provide information necessary to identify and characterize special populations in accordance with legislative and administrative directives (e.g., small businesses under SBREFA; state, local, and tribal governments under UMRA; and minority and low-income groups under E.O. 12898 on environmental justice).

The economic analyst uses the information provided in the industry profile in the following ways:

  1. as the basis for determining the level of analysis to be performed and justifying the assumptions to be used in the economic analysis,
  2. to provide the statistical and analytical basis for the selected methodological framework in defining the baseline for the economic analysis and/or estimating model parameters, and
  3. to assess the feasibility of and provide the data necessary for calculating the impact of a regulation on special populations.

As described below, the market orientation of the methodological framework for economic analysis conducted by ISEG has determined the structure and content of the industry profile.


4 Industry Profile

 4.0 Intro

 4.1 Purpose and Use

 4.2 Structure and Content

 4.3 Data Sources

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