Community Economic Analysis: A How To Manual

Last updated: February 11, 2026

By Ronald J. Hustedde, Ron Shaffer, and Glen C. Pulver

This manual addresses three key questions at the local level: 1) What are the current economic conditions in the community? 2) What components of the community have been growing or what components have been declining? 3). What are the community’s options for improving its economic future and which of those options should be pursued first?

The manual provides tools to address these questions about community’s economy such as Reilly’s Law, Trade Area Capture, Pull Factor, Potential Sales, Location Quotient, Shift Share Analysis, National Growth Component, Industrial Mix Component, Competitive Share Component, and Employment and Income Multipliers with easy-to-understand examples.