The Fourth Economy team publishes a regular, semi-monthly eNewsletter, entitled Economic Architecture, which provides news, editorial insights, and stories of innovation, collaboration, economic & community development, and other drivers of the fourth economy.

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New Economics of Land Use

A great American poet once said, “For the times they are a-changing.”  That is especially true today in our economy. Underneath the radar of the rhetoric and public spotlight, the changes in the economy are generating a ripple effect for how industries and people use land.  Land use is not a topic that is top of mind for most people, but a few local governments are waking up to the reality that a number of forces are beginning to change the need for land, and ultimately its value.  Local governments care deeply about land use, or they should, because the value of land translates into the property tax revenues they need to maintain the community. Continue reading “New Economics of Land Use”

Fourth Economy’s Rich Overmoyer and Chelsea Burket Appear on “Our Region’s Business”

Fourth Economy CEO Rich Overmoyer, along with Director, Sustainable Communities, Chelsea Burket were recent guests on “Our Region’s Business” hosted by Bill Flanagan. They discussed Fourth Economy’s role as a platform partner for the Rockefeller Foundation 100 Resilient Cities initiative. Watch their appearance by clicking on the video below.

What is the Economic Cost–or Benefit—of Sanctuary Cities?

In the past election cycle, the term “sanctuary cities” was used quite a bit, often without defining it or providing an objective view of the advantages or disadvantages of adopting these policies. Cities considering adopting these policies should consider both their values and the economic costs or benefits of implementing sanctuary policies and what is entailed in enforcing immigration policy on a local level.

In 2008, Immigration and Customs Enforcement (ICE), an arm of the Department of Homeland Security, began a program called Secure Communities, which encouraged local law enforcement organizations to send arrested persons’ fingerprints to ICE to check for a record of illegal immigration. If there is a match, ICE issues a detainer against the jailed individual, so that they can be held in jail, even if they are not found to have committed a crime, while ICE decides if they should be deported. Continue reading “What is the Economic Cost–or Benefit—of Sanctuary Cities?”

Three Questions to Demonstrate Impact

Last month, my colleague Chris Ellis shared some insight into Pay for Success as part of a larger conversation we’ve been having about innovative financing. Many of our clients are doing innovative work in the public and nonprofit sectors, and have found that thinking creatively about solutions often means facing challenges in securing the necessary resources to implement them. Pay for Success is one such promising model, and it relies heavily on the need to evaluate outcomes – which means that our approach to evaluation needs to be just as thoughtful and innovative as our approach to problem solving. Continue reading “Three Questions to Demonstrate Impact”

Checking Up on the Health of Pittsburgh’s Startup Economy

Much attention has been paid to Pittsburgh’s burgeoning cohort of tech startups — but, more broadly, how is the climate for startup businesses in Pittsburgh, and what does it indicate about our city’s entrepreneurial culture? The Kauffman Index is one of the most prominent rankings of entrepreneurship and startup activity. Its release is often used to measure how Pittsburgh is doing compared to other metropolitan areas–and how we’ve progressed over time.

The 2016 Kauffman Index shows that entrepreneurship in the Pittsburgh region continues to lag behind other major metropolitan areas. Pittsburgh ranks 40th in startup activity in 2016, unchanged from our 2015 ranking. However, our rate of new entrepreneurs slipped from 150 new firms per 100,000 adults in 2015 to just 120 in 2016. By way of comparison, Austin, which ranked first in 2015 and 2016, saw its rate of new entrepreneurs go from 550 per 100,000 in 2015 to 600 in 2016. This means that Austin generated five times as many new firms per 100,000 adults as Pittsburgh did last year. Continue reading “Checking Up on the Health of Pittsburgh’s Startup Economy”

Education and Growth

paytas-main-blog_imageKnowledge is not an excludable good.

I have been thinking a lot lately about what drives economic growth and who shares in it. There are a lot of explanations out there, and I expect that we will hear a lot more theories about uneven growth in the months and years to come.

Thinking about what powers our economic growth, education exerts an increasing influence on the distribution of benefits (Figure 1). Earnings are higher and unemployment is lower as the level of individual educational attainment increases. Continue reading “Education and Growth”

4 Names to Know

overmoyer-main-blog_image2At Fourth Economy, our team has consistently looked ahead to see what will impact our clients in the coming years and made sure that we have the right set of capabilities and partners to help mind our clients’ needs. While many of our clients have expressed a great deal of uncertainty, we believe that we are well equipped to handle whatever is sent our way. Continue reading “4 Names to Know”

Innovative Financing: Paying for What Works

ellis-main-blog_imageA new generation of innovative funding tools is enabling change agents to expand programs that are meeting their community’s needs. Pay for Success (PFS) transactions, or Social Impact Bonds, represent an emerging financing mechanism that is driven by cross-sector partnerships, robust data, and a commitment to outcomes.

PFS utilizes upfront private investment to expand social programs that have proven results. In order to encourage this type of investment in their programs, service providers must be able to use data to show that their proposed intervention measurably improves outcomes for their clients and leads to an avoidance of cost. Additionally, these transactions depend on the collaborative efforts of a diverse set of stakeholders. PFS engages partners from the public, private, and nonprofit sectors in five critical roles: an investor who funds the expansion of the program; a service provider who administers the program; an independent evaluator who measures the effectiveness of the program; a public entity, or other outcome payer, who repays the investment based on the success of the program; and an intermediary who facilitates the partnerships and ensures that the project operates effectively and efficiently. Continue reading “Innovative Financing: Paying for What Works”

Dr. Jerry Paytas on the Fourth Economy

Our own Jerry Paytas appeared on the Sunday Business Page recently where he was interviewed by KDKA’s Rick Dayton. Dr. Paytas explained the origin of the Fourth Economy name and provided a brief overview of our philosophy for effective economic and community development. Click here or on the image below to watch the complete interview.

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