The Regional Economic Effects of Military Base Realignments and Closures in Germany
AbstractWithin the context of the current political discussion over base realignments and closures (BRACs) in Germany, this study provides policy guidance by examining the economic consequences to the surrounding community. We identify the causal effect of a reduction in military personnel on a number of socioeconomic indicators within the peripheries of military bases. The BRACs within the German armed forces is used an exogenous source of variation that allows for the estimation of the causal effect of a particular demand shock on household income, output, unemployment, and tax revenue within a specified buff er zone around each base. The analysis covers 298 communities for the period 2003–2007. Consistent with evidence found elsewhere, we find that these base adjustments have only a marginal impact on the local community in which the bases are located.
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Bibliographic InfoPaper provided by Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen in its series Ruhr Economic Papers with number 0181.
Length: 21 pages
Date of creation: Apr 2010
Date of revision:
Other versions of this item:
- 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.
- H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
- K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
- R19 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Other
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