The information presented here is based on the findings of Arts & Economic Prosperity IV, an economic impact study of the non-profit arts and sciences in Flagstaff, Arizona. The study was conducted by Americans for the Arts, the nation's leading non-profit organization for the advancement of the arts. Local data collection was conducted by Flagstaff Cultural Partners, the local arts agency serving the arts and sciences in Flagstaff and Coconino County. Data was collected from the financial statements of 37 local non-profit arts, culture and science organizations in Flagstaff. A total of 1,332 valid and usable audience-intercept surveys were collected from attendees to nonprofit arts and culture performances, events, and exhibitions during 2011. To derive the most reliable economic impact data, input-output analysis is used to measure the impact of expenditures by nonprofit arts and culture organizations and their audiences. This is a highly regarded type of economic analysis that has been the basis for two Nobel Prizes. The models are systems of mathematical equations that combine statistical methods and economic theory in an area of study called econometrics. They trace how many times a dollar is re-spent within the local economy before it leaks out, and it quantifies the economic impact of each round of spending. This form of economic analysis is well suited for this study because it can be customized specifically to each study region. To complete the analysis for the City of Flagstaff, project economists customized an input-output model based on the local dollar flow between 533 finely detailed industries within the economy of Coconino County. This was accomplished by using detailed data on employment, incomes, and government revenues provided by the U.S. Department of Commerce (County Business Patterns, the Regional Economic Information System, and the Survey of State and Local Finance), local tax data (sales taxes, property taxes, and miscellaneous local option taxes), as well as the survey data from the responding nonprofit arts and culture organizations and their audiences. For more information about Arts & Economic Prosperity IV, visit the Americans for the Arts website.
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