Come up with a process that would measure regional wealth in the UK. ‘Wealth’ in this instance refers to invested assets and does not include pensions or property. The project map should...

Come up with a process that would measure regional wealth in the UK. ‘Wealth’ in this instance refers to invested assets and does not include pensions or property. The project map should outline appropriate data sources (e.g. ONS) as well as ideas on how data could be captured elsewhere. 

Looking forward for your reply.

Best wishes,

Asked on by soofa123

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science2014 | (Level 1) Valedictorian

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Before we answer this question, let's familiarize ourselves with a few definitions:

Indication of Interest (IOI)

"An activity which has the potential to impact on the economy of a locality over a finite period." Example: Creation of office space for business.

Gross Value Added (GVA)

"Gross Value Added (GVA) is the contribution of each individual producer, industry or sector to the economy. It is produced as a summary by the ONS as a measure of the complex interactions of the economy."

Now coming to your question: The ONS report titled "Measuring the economic impact of an intervention or investment, Paper One: Context & Rationale (Dec 2010) by Gary Wainman, Ian Gouldson and Anthony Szary" describes the processes by which regional invested assets in UK can be measured, which include:

1) "Estimating approximate GVA using net employment gain and multiplying this by average (mean) GVA per filled job for the region"

2) "Adding together net increases in total salaries and business profits"

However, these methods are found to be inconsistent as it lacks authoritative guidance on the calculation of GVA. Hence, following modifications were proposed:

i) Introduce the context and rationale for measuring the economic impact of an IOI.

ii) Outline official metrics currently used to measure economic activity at varying scales (national, regional, sub-regional), and methods which are currently used to evaluate an IOI

iii) Introduce issues to consider when measuring impacts in terms of GVA

Taking all of the above-mentioned factors and methods into consideration, it is possible measure the regional invested assets in UK.

Reference:

http://www.ons.gov.uk "Measuring the economic impact
of an intervention or investment. Paper One: Context & Rationale (Dec 2010) by Gary Wainman, Ian Gouldson and Anthony Szary"

Sources:

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