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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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    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.
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    5. Patrick E. Poppert & 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, August.
    6. 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.
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    Cited by:

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    2. 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.
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    4. Camerin, Federico & Gastaldi, Francesco, 2018. "Italian military real estate assets re-use issues and opportunities in three capital cities," Land Use Policy, Elsevier, vol. 78(C), pages 672-681.
    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.
    6. Marzena Piotrowska-Trybull & Maria Jablonska-Woloszyn, 2020. "Assessment of Services Rendered by a Public Organization to the Citizen: The Perspective of Security in Peacetime," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 623-637.
    7. Brau, Rinaldo & Statzu, Vania, 2017. "The economic enhancement of military sites and landscapes: what are the lessons of international practice?," MPRA Paper 98570, University Library of Munich, Germany.
    8. José R. García & Joaquín Murillo & Jordi Suriñach & Esther Vayá, 2018. "Economic impact of the ministry of defence’s budget: methodological design and results for the Spanish economy," Defence and Peace Economics, Taylor & Francis Journals, vol. 29(4), pages 459-473, June.
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    More about this item

    Keywords

    Armed forces; Base closure; Defense drawdown; Demand shock; Geographic information system; Regional adjustment;
    All these keywords.

    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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