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The Regional Economic Effects Of Military Base Realignments And Closures In Germany

Author

Listed:
  • Alfredo Paloyo
  • Colin Vance
  • Matthias Vorell

Abstract

We identify the causal effect of a reduction in military personnel on a number of socioeconomic indicators within the peripheries of military bases. The base realignments and closures in Germany are used as an exogenous source of variation that allows us to identify the effect of a demand shock on household income, output, unemployment, and tax revenue within a specified buffer 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.

Suggested Citation

  • 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.
  • Handle: RePEc:taf:defpea:v:21:y:2010:i:5-6:p:567-579
    DOI: 10.1080/10242694.2010.524778
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    References listed on IDEAS

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    1. 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.
    2. C J Krizan, 1998. "Localized Effects Of California'S Military Base Realignments: Evidence From Multi-Sector Longitudinal Microdata," Working Papers 98-19, Center for Economic Studies, U.S. Census Bureau.
    3. Jurgen Brauer & John Tepper Marlin, 1992. "Converting Resources from Military to Non-military Uses," Journal of Economic Perspectives, American Economic Association, vol. 6(4), pages 145-164, Fall.
    4. Patrick E. Poppert-super-1 & Henry W. Herzog Jr., 2003. "Force Reduction, Base Closure, and the Indirect Effects of Military Installations on Local Employment Growth," Journal of Regional Science, Wiley Blackwell, vol. 43(3), pages 459-482.
    5. Catherine Hill, 2000. "Measuring Success in the Redevelopment of Former Military Bases: Evidence from a Case Study of the Truman Annex in Key West, Florida," Economic Development Quarterly, , vol. 14(3), pages 267-277, August.
    6. H. Spencer Banzhaf & Randall P. Walsh, 2008. "Do People Vote with Their Feet? An Empirical Test of Tiebout," American Economic Review, American Economic Association, vol. 98(3), pages 843-863, June.
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    Cited by:

    1. repec:taf:defpea:v:29:y:2018:i:4:p:459-473 is not listed on IDEAS
    2. Alfredo Paloyo & Colin Vance & Matthias Vorell, 2014. "Local determinants of crime," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 31(21), pages 625-658, September.
    3. Philipp Breidenbach, 2015. "Expansions of Regional Airports and their Effect on the Local Economy," ERSA conference papers ersa15p1196, European Regional Science Association.
    4. Gathmann, Christina & Helm, Ines & Schönberg, Uta, 2014. "Spillover Effects in Local Labor Markets: Evidence from Mass Layoffs," Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100378, Verein für Socialpolitik / German Economic Association.
    5. 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.

    More about this item

    Keywords

    Armed forces; Base closure; Defense drawdown; Demand shock; Geographic information system; Regional adjustment;

    JEL classification:

    • 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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