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In assessing New Orleans’ economic situation in the context of the above parameters, it is important to take into account both the short- and longterm benefits and costs associated with the rebuilding effort. Costs include immediate expenses such as labor and materials for reconstruction, as well as future expenditures related to upkeep/maintenance activities. In contrast, new construction can result in increased activity, which may lead to job creation or tourism. It can also generate more tax revenue for the local authorities.
Cost-Benefit Analysis is one way to assess these factors. Estimates are then made about the expenses that will be incurred to rebuild New Orleans, as well as any possible gains. Once this information is compiled, decision-makers can compare all the factors and decide if a project will be approved based on expected returns over time.