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Economic impact

Impact studies are commissioned to persuade. Live Index publishes the assumptions that determine whether the number means anything.

Overview

Economic impact is the most quoted and least interrogated figure in live music. A total is produced, a multiplier is applied somewhere inside it, and the resulting number enters public debate without the assumptions that generated it.

Three of those assumptions do most of the work. Whether spending is new to the area or merely moved within it. Whether the multiplier applied to indirect and induced effects is defensible for the region. And whether displaced activity — the restaurant meal that did not happen elsewhere, the hotel night that was substituted — is netted out.

None of this means live music lacks economic value. It means the value should be stated in a form that survives scrutiny: a figure whose method is published can be checked, and one whose method is not cannot.

Live Index reports direct spending separately from modelled effects, states the multiplier and its source, and publishes what the estimate excludes alongside what it includes.

Research on economic impact