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The Gadget
The LM3 tool was originated by nef (the new economics foundation). LM3 is now a Government-recognised tool for measuring economic impact, particularly for public procurement. LM3 has been and continues to be used by the public, private, and non-profit sectors. It is acknowledged to be one of the few robust ways to measure economic impacts on communities.
The latest development is the Gadget which uses LM3 methodology as a campaigning tool for socially responsible organisations. Try out the Gadget on this page and you will be able to see how your organisation can use it to:
- Deliver benefit to members and suppliers,
- Sell your services, and earn additional revenue
- Measure impact and prove community benefit
Useful links:
LM3 stands for Local Multiplier 3. The name represents how the tool works.
Local: LM3 looks at a specific local economy or set of local economies. This stands in contrast to traditional multiplier analysis, which looks at larger areas, such as whole nations.
Multiplier: The multiplier is an economics concept used to denote how much a specific inflow of income into an area then circulates (or multiplies) in that area.
3: LM3 looks at three rounds of spending -- the original inflow, how that inflow is spent, and how that money is re-spent.
Local: LM3 looks at a specific local economy or set of local economies. This stands in contrast to traditional multiplier analysis, which looks at larger areas, such as whole nations.
Multiplier: The multiplier is an economics concept used to denote how much a specific inflow of income into an area then circulates (or multiplies) in that area.
3: LM3 looks at three rounds of spending -- the original inflow, how that inflow is spent, and how that money is re-spent.
