Thursday, May 1, 2014

Parametrics, public relations trics, “Engines” and Econometrics

We’ve told you on many occasions that we’re just a ‘country engineer’ who has a problem stifling himself.  Consequently, we suspect many of you, upon reading yesterday’s treatise, especially when we got to the part about bottom line parameters, reacted as if we had put forth this theory:

Guilt, justifiably, overcame us, and we decided we have an obligation to clarify things for you.  After all, if you can’t understand and apply the information, what’s the use?

So we’d like to illustrate what we were getting at with hypothetical examples to make our point clear.  Crystal clear.

Case A

Every day, 70 people from the Portland area board the morning Downeaster to Brunswick.  They spend an average of $30 per person roaming around Maine Street businesses, and then ride the last train out of Brunswick back to Portland.

The “Bottom Line” Parameters:

1) The net average daily passenger flow to Brunswick is + 70 (a positive.)

2) The net daily average dollar flow to Brunswick is $2,100 ($30 x 70); a positive/gain.

    

The News:

1) NNEPRA reports that 140 people per day are riding the Downeaster north of Portland, well beyond projections.  And that enthusiasm is growing for expanded service.

2) Brunswick officials report that ridership is exceeding projections, that amazing things are happening for businesses downtown, and that ‘everyone’ is excited about increased train service.

Case B

Every day, 70 people from the Brunswick area board the first Downeaster to Portland.  They spend an average of $30 per person roaming around Portland, and then ride the last train out of Portland back to Brunswick.

The “Bottom Line” Parameters:

1) The net average daily passenger flow to Brunswick is – 70 (a negative.)

2) The net daily average dollar flow to Brunswick is - $2,100 (- $30 x 70); a negative/loss.

The News:

1) NNEPRA reports that 140 people per day are riding the Downeaster north of Portland, well beyond projections.  And that enthusiasm is growing for expanded service.

2) Brunswick officials report that ridership is exceeding projections, that amazing things are happening for businesses downtown, and that ‘everyone’ is excited about increased train service.

Case C

Every day, 35 people from the Brunswick area board the first Downeaster to Portland.  They spend an average of $30 per person roaming around Portland, and then ride the last train out of Portland back to Brunswick. 

Additionally, 35 people from the Portland area board the first Downeaster to Brunswick.  They spend an average of $30 per person roaming around Maine Street, and then ride the last train out of Brunswick back to Portland.

The “Bottom Line” Parameters:

1) The net average daily passenger flow to Brunswick is 0 (35 minus 35; zero, nada, nothing)

2) The net daily average dollar flow to Brunswick is $0 ($1050 minus $1050; zero, nada, nothing)

The News:

1) NNEPRA reports that 140 people per day are riding the Downeaster north of Portland, well beyond projections.  And that enthusiasm is growing for expanded service.

2) Brunswick officials report that ridership is exceeding projections, that amazing things are happening for businesses downtown, and that ‘everyone’ is excited about increased train service.

We hope these simple illustrations clear things up for you; we’re determined to make sure you understand why an objective, rigorous, service-oriented, academically disciplined study of Downeaster economic consequences is called for.

We, as you know all too well, have been contemplating the subject for some time, and our command of the complexities involved is a matter of public record.

Any questions class?  Bueller?  Brunswick?  Anyone?

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