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Frequently Used Terms <br /> Cultural Tourism <br /> Travel directed toward experiencing the arts, heritage, and special character of a place. <br /> Direct Economic Impact <br /> A measure of the economic effect of the initial expenditure within a community. For example,when the <br /> symphony pays its players,each musician's salary,the associated government taxes, and full-time equivalent <br /> employment status represent the direct economic impact. <br /> Direct Expenditures <br /> The first round of expenditures in the economic cycle.A paycheck from the symphony to the violin player and a <br /> ballet company's purchase of dance shoes are examples of direct expenditures. <br /> Econometrics <br /> The process of using statistical methods and economic theory to develop a system of mathematical equations that <br /> measures the flow of dollars between local industries. The input-output model developed for this study is an <br /> example of an econometric model. <br /> Econometrician <br /> An economist who designs,builds,and maintains econometric models. <br /> Full-Time Equivalent (FTE) Jobs <br /> A term that describes the total amount of labor employed. Economists measure FTE jobs—not the total number of <br /> employees—because it is a more accurate measure of total employment. It is a manager's discretion to hire one <br /> full-time employee,two half-time employees, four quarter-time employees,etc. Almost always,more people are <br /> affected than are reflected in the number of FTE jobs reported due to the abundance of part-time employment, <br /> especially in the nonprofit arts and culture industry. <br /> Indirect and Induced Economic Impact <br /> This study measures the economic impact of the arts using a methodology that enables economists to track how <br /> many times a dollar is respent within the local economy,and thus to measure the economic impact generated by <br /> each round of spending. When a theater company purchases paint from the local hardware store,there is a <br /> measurable economic effect of that initial expenditure within a community. However,the economic benefits <br /> typically do not end there,because the hardware store uses some of its income to pay the clerk that sold the paint, <br /> as well as to pay its electric bill and to re-stock the shelves. The indirect and induced economic impacts are the <br /> effects of the subsequent rounds of spending by businesses and individuals, respectively. (See the example on <br /> Page 5 of this report.) <br /> AMERICANS FOR THE ARTS I Arts&Economic Prosperity 5 25 <br /> 1-3I <br />