The local multiplier effect (sometimes called the local premium) is the additional economic benefit accrued to an area from money being spent in the local economy. The concept has been taken up by advocates for "spend local" campaigns in addition to more formal treatments in the area of regional economic development. Use in local spending campaigns One perspective of the local multiplier effect focuses on the greater local economic return generated by money spent at locally-owned independent businesses compared to corporate chains or other absentee-owned businesses. Localisation advocates cite the multiplier effect as one reason, of many, for consumers to do more of their business locally. Two U.S.-based entities have published studies measuring the local multiplier. Civic Economics, a for-profit economic consultancy, has undertaken studies in Austin, TX, San Francisco, CA; Chicago, IL and Western Michigan. The Institute for Local Self-Reliance, a non-profit organization, executed a study looking at much smaller communities in the Central Coast of Maine. Use in regional economic development In the field of regional economic development, local multiplier effect refers to the spillover effect the presence of a particular type of job has on additional local economic activity. Current scholarly debate around local multipliers center around the magnitude of the effect from different industries and sectors on local employment. This section will lay out the current theory as to how local multipliers operate in the local economy, its policy implications, and highlight current research into the magnitude of the effect. Theory of local multiplier effect In discussing local multipliers, regional economists focus on differences in job creation in the tradable and non-tradable sectors of the economy. Whenever a new job is created, there is a chance that additional jobs may also be created via increased demand for local goods and services. Some economists argue that jobs in the tradable sector have a much higher local multiplier effect. This is due to the tradable sector market existing beyond the borders of a local region. This larger market allows the tradable sector to generate more revenue, have higher salaries, and increase in size independent of the local economic climate. The size of the multiplier effect on the non-tradable sector is determined by the interplay of three factors: consumer preference for non-tradables, the types of jobs created, and the elasticity of local labor and housing supply. Consumer preference refers to certain non-tradable goods and services requiring more workers to