FEDC has developed an Economic Model of the Fairbanks economy. This comprehensive model provides our community a decision making tool that supplies statistical information about economic drivers of the FNSB economy. This model helps provide an understanding of the basic economic activity that are responsible for new money coming into our economy, leading to our region’s outflows of money from the purchase of imports, creating labor income and other positive economic activity. We encourage you to use this model; work with it, play with it, ask questions about it. Understanding your economy is the first step in becoming part of an effort to improve your economy.
Click here to see the Economic Model
As described above the Basic activities fuel an economy with new dollar income, and by spending, distribute it among the supporting industries that provide goods and services to the exporting (basic) sector industries; fostering endogenous economic activity. The process of spending and re-spending of injected (exogenous) money within an economy is called the multiplier effect. The relationship of basic and non-basic economy is important to maintain a healthy economy. It can affect a regions social and demographic structure negatively when imbalanced.