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Disaggregate Economic Base Multipliers in Small Communities

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  • A C Vias
  • G F Mulligan

Abstract

Economic base analysis is frequently used to describe employment profiles and to predict project-related impacts in small communities. Considerable evidence suggests, however, that economic base multipliers should be estimated from survey data and not from shortcut methods. In this paper two competing versions of the economic base model are developed and then these two models are estimated by use of the Arizona community data set. In both cases, marginal multiplier estimates, controlled for transfer payments, are generated for ten individual sectors in five different types of communities. Results from these two disaggregate economic base models are assessed and then compared with results provided earlier by more aggregate models. The better of these two new models closely resembles the popular input—output model.

Suggested Citation

  • A C Vias & G F Mulligan, 1997. "Disaggregate Economic Base Multipliers in Small Communities," Environment and Planning A, , vol. 29(6), pages 955-974, June.
  • Handle: RePEc:sae:envira:v:29:y:1997:i:6:p:955-974
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    Cited by:

    1. Banerjee, Swagata (Ban) & Harris, Thomas R., 2001. "A Disaggregated Time-Series Analysis Of Export-Base Models: A Case Study On Elko County Of Nevada," 2001 Annual meeting, August 5-8, Chicago, IL 20640, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Gordon F. Mulligan, 2008. "A New Shortcut Method for Estimating Economic Base Multipliers," Regional Science Policy & Practice, Wiley Blackwell, vol. 1(1), pages 67-84, November.
    3. Gordon Mulligan, 2010. "Revisiting interindustry employment requirements in nonmetropolitan economies," Letters in Spatial and Resource Sciences, Springer, vol. 3(2), pages 61-70, July.
    4. Mulligan, Gordon F., 2000. "Town Specialization and the Relationships Between Occupation Employment and Industry Employment," The Review of Regional Studies, Southern Regional Science Association, vol. 30(3), pages 239-258, Winter.
    5. Stanley, Denise L., 2003. "The Economic Impact of Mariculture on a Small Regional Economy," World Development, Elsevier, vol. 31(1), pages 191-210, January.
    6. Carole Doucet, 2004. "Espaces ruraux, espaces périphériques ? Les perspectives de développement économique associées au vignoble de Bordeaux," Post-Print hal-01201062, HAL.
    7. Biles, James J., 2003. "Using Spatial Econometric Techniques to Estimate Spatial Multipliers: An Assessment of Regional Economic Policy in Yucatan, Mexico," The Review of Regional Studies, Southern Regional Science Association, vol. 33(2), pages 121-141.
    8. Joseph Cullen & Price V. Fishback, 2006. "Did Big Government's Largesse Help the Locals? The Implications of WWII Spending for Local Economic Activity, 1939-1958," NBER Working Papers 12801, National Bureau of Economic Research, Inc.
    9. Doucet, Carole, 2004. "Espaces ruraux, espaces périphériques ? Les perspectives de développement économique associées au vignoble de Bordeaux," Cahiers d'Economie et de Sociologie Rurales (CESR), INRA (French National Institute for Agricultural Research), vol. 70.
    10. Peter G. McGregor & Eric P. McVittie & J. Kim Swales & Ya Ping Yin, 2000. "The Neoclassical Economic Base Multiplier," Journal of Regional Science, Wiley Blackwell, vol. 40(1), pages 1-31.
    11. Carole Doucet, 2004. "Espaces ruraux, espaces périphériques ? Les perspectives de développement économique associées au vignoble de Bordeaux," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 70, pages 49-76.

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