Our Experience

Industries Petroleum Natural Gas Chemicals Electronics Pharmaceuticals, Medical Devices, & Biotech Retail/Consumer Goods Technology Transportation Local/State Government School Districts Other Industries

Functional Areas Antitrust & Competition Analysis of Damages Forensic Economics Intangibles/IP Labor Economics Regulatory Economics & Finance Transfer Pricing Taxation Valuation Fiscal Impact Analysis Demographic Analysis Public Policy Analysis

 

Public Policy Analysis

The tools of economic analysis are frequently applied to assess the impact that a policy or program may have on business behavior or an industry segment. IIC, Inc. has considerable experience and expertise in performing policy analysis, particularly in examining the impact of an existing or proposed policy will have on firm behavior. We have worked for industry, trade associations, and policymakers in performing such assessments, and the results of our work have frequently been used either to support the policy or to make positive, beneficial changes to an existing policy.

Assessing Effects of Deepwater Royalty Relief Program

IIC, Inc. performed a major policy study which provided an improved understanding of the effects of the deepwater royalty relief program on leasing and exploration behavior in the Gulf of Mexico. This policy had been implemented by Congress in the mid-1990s and aimed to stimulate exploration activity in deepwater areas of the Gulf of Mexico. We analyzed the impact of the program on lease sales, bonus bids, and exploratory drilling activity in various areas of the Gulf. We also developed a comprehensive model of the exploration, development, and production (EDP) of oil and gas resources in the Gulf of Mexico for the Minerals Management Service (MMS). This model is used by MMS staff to project future fiscal impacts of various policy regimes and thus provide a cost/benefit analysis of the program.

Crude Oil Market Study

We analyzed the changes in how crude oil has been marketed in the United States over the last 30 years and recommended changes in the manner in which royalties are collected by the federal government for oil produced on government-owned land. IIC, Inc. showed that the value that had been reported for royalty purposes was significantly below transportation-adjusted spot prices as well as the prices at which the producers were transacting among themselves. The royalty valuation rules were eventually changed based in part on the recommendations made by IIC, Inc.

Tax Expenditure Impacts

For the U.S. Small Business Administration, we analyzed the impact of various major tax expenditure programs on the effective tax rates of small and large firms. We showed that small firms were differently harmed by certain programs but had benefited from others relative to large firms in the same industries.

Antitrust Impacts on Small Businesses

A key tenet of the U.S. antitrust policy is to protect competition, and not competitors. Less is known about antitrust impacts on small business, including whether antitrust enforcement activity aids small firms in competing against larger counterparts. We recently completed a study that reviewed antitrust enforcement activity and focused on two detailed industry case studies (grocery and pulp and timber) to assess small firm reaction to changes in market concentration and antitrust enforcement.

Electronic Procurement

IIC, Inc. examined data and trends in electronic commerce and electronic procurement, and whether small firms have benefited or been harmed by the trend of increased use of e-procurement by the federal government. We recommended various ways in which electronic contracting might be improved from the perspective of small firms.

Rural Small Business Study

IIC, Inc. has also analyzed why rural small businesses have fared differently during the time of economic prosperity of the late 1990s and subsequent contraction in relation to their urban counterparts. We analyzed the effect various demographic, economic, and policy elements have had on rural small business growth and profitability relative to urban small businesses. As part of this work, we developed regression models to explain rural small business growth and profitability and we examined rural small business growth and profitability in several specific states.

EDI and Small Businesses

In an earlier study for the U.S. Small Business Administration, we measured diffusion of electronic data interchange (EDI) technolo­gy and its effects on small business. This work involved the design and implementation of a survey of users of this technology, and analysis of the role of EDI in those users competed in their respective markets. This report recommended various ways in which the U.S. Small Business Administration could assist small firms in using this technology to compete more effectively with larger users of EDI.