They are representive of the type of analysis economists are required to carry out. The sequence starts with the conceptually easiest method, fiscal impact analysis and ends with the conceptually most difficult, cost benefit analysis. This technique constructs estimates of the impact of a project, such as a housing development, on the revenue and costs of local government. This is a population forecasting method.
Future population is forecast by estimating by age group the survivors from the present population.
Birth are forecast on the basis of the female population by age group and the age group specific fertility rates. The same methods, however, may be used to determine the effect on interrelated regions of a change in production in one of those regions. Likewise the interrelationships among countries can be analyzed using these methods. This method is the determining the financial feasibility of a project, such as a dam or highway. This involves, among other things, determining the present value of the benefits and costs.