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Measuring the Economic Effects of Military Base Closures

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  • Hooker, Mark A
  • Knetter, Michael M

Abstract

In this article, we use a newly constructed dataset to analyze the county-level employment and personal income effects resulting from closures of military bases during 1971-94. Our estimated multipliers are mostly less than one, and considerably smaller than those typically used in economic impact studies. We find that the employment costs are mostly limited to the direct job loss associated with military transfers out of the region, and per capita income is little affected by closures on average. Copyright 2001 by Oxford University Press.

Suggested Citation

  • Hooker, Mark A & Knetter, Michael M, 2001. "Measuring the Economic Effects of Military Base Closures," Economic Inquiry, Western Economic Association International, vol. 39(4), pages 583-598, October.
    • Handle: RePEc:oup:ecinqu:v:39:y:2001:i:4:p:583-98
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    Cited by:

    1. Weinstein, Russell, 2018. "Dynamic responses to labor demand shocks: Evidence from the financial industry in Delaware," Journal of Urban Economics, Elsevier, vol. 106(C), pages 27-45.
    2. Ando, Michihito, 2013. "Estimating the effects of nuclear power facilities on local income levels: A quasi-experimental approach," Working Paper Series 2013:3, Uppsala University, Department of Economics.
    3. Roland Zullo & Yijun Liu, 2017. "Contending With Defense Industry Reallocations: A Literature Review of Relevant Factors," Economic Development Quarterly, , vol. 31(4), pages 360-372, November.
    4. Gathmann, Christina & Helm, Ines & Schönberg, Uta, 2014. "Spillover Effects in Local Labor Markets: Evidence from Mass Layoffs," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100378, Verein für Socialpolitik / German Economic Association.
    5. Alfredo Paloyo & Colin Vance & Matthias Vorell, 2011. "The regional effects of military base realignments and closures," ERSA conference papers ersa10p840, European Regional Science Association.
    6. Josselin Droff & Alfredo R. Paloyo, 2015. "Assessing The Regional Economic Impacts Of Defense Activities: A Survey Of Methods," Journal of Economic Surveys, Wiley Blackwell, vol. 29(2), pages 375-402, April.
    7. Zhang, Haoran, 2023. "Coal busts and urban recovery: Evidence from China," Regional Science and Urban Economics, Elsevier, vol. 101(C).
    8. Jofre-Monseny, Jordi & Sánchez-Vidal, Maria & Viladecans-Marsal, Elisabet, 2015. "Big plant closures and agglomeration economies," LSE Research Online Documents on Economics 64621, London School of Economics and Political Science, LSE Library.
    9. Linda Andersson & Johan Lundberg & Magnus Sjostrom, 2007. "Regional Effects Of Military Base Closures: The Case Of Sweden," Defence and Peace Economics, Taylor & Francis Journals, vol. 18(1), pages 87-97.
    10. Jordi Jofre-Monseny & Maria Sánchez-Vidal & Elisabet Viladecans-Marsal, 2018. "Big plant closures and local employment," Journal of Economic Geography, Oxford University Press, vol. 18(1), pages 163-186.
    11. Lu, Jiajun & Zhu, Yueteng, 2021. "The asymmetric government spending multipliers: Evidence from US regions," Economics Letters, Elsevier, vol. 208(C).
    12. Aragon, Fernando & Rud, Juan, 2009. "The Blessing of Natural Resources: Evidence from a Peruvian Gold Mine," Working Papers 2009-014, Banco Central de Reserva del Perú.
    13. James CUST & Ridwan D. RUSLI, 2014. "The economic spillovers from resource extraction: a partial resource blessing at the subnational level?," Economic Growth Centre Working Paper Series 1402, Nanyang Technological University, School of Social Sciences, Economic Growth Centre.
    14. Alfredo Paloyo & Colin Vance & Matthias Vorell, 2010. "The Regional Economic Effects Of Military Base Realignments And Closures In Germany," Defence and Peace Economics, Taylor & Francis Journals, vol. 21(5-6), pages 567-579.
    15. Dahlberg, Matz & Martén, Linna & Öckert, Björn, 2021. "Who recovers from a job loss? The importance of cognitive and non-cognitive skills," Working Paper Series 2021:2, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    16. David Sorenson & Peter Stenberg, 2015. "The Effect of Military Base Closures on Rural County Economies: An Evaluation of the 1988–1995 Rounds of Cuts," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 21(2), pages 167-187, May.

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