IDEAS home Printed from https://ideas.repec.org/p/wiw/wiwrsa/ersa10p840.html
   My bibliography  Save this paper

The regional effects of military base realignments and closures

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 periphery of the military base. The base realignments and closures (BRACs) within the German armed forces is 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 crime rates within a specified buffer zone around each base. The analysis covers 129 communities for the period 2003-2007. Consistent with evidence found elsewhere, we find that these base adjustments have a marginal impact on the local community in which the bases are located. Within the context of the current political discussion over BRACs in Germany, this study provides policy guidance by examining the costs and benefits to the surrounding community. It also gives an indication of how quickly a local economy can adjust to an exogenous reduction in demand. The data on crime were obtained from the Criminal Statistics of the German Police. Other socioeconomic variables are drawn from the federal and state statistical offices of Germany. The data are recorded at the level of the Kreis (NUTS 3). The data on military bases, closures, and core personnel were taken from the Deployment Concept of the Federal Armed Forces of Germany 2004. This includes a variable that spatially situates the base at the Gemeinde level (LAU 2/NUTS 5). To incorporate the information from the home and surrounding Kreise, we use a Geographic Information System (GIS) application to draw a circular buffer around the centroid of the selected Gemeinde. The area of the buffer's overlap with each of the Kreise contained therein is calculated and then divided by the total area of the buffer. This quotient is used to construct a weighted sum of the information in each of the surrounding Kreise for the variables used in the analysis. One advantage of this approach is that, by adjusting the size of the buffer, it allows us to readily test the robustness of the results according to the scale of the analysis.

Suggested Citation

  • Alfredo Paloyo & Colin Vance & Matthias Vorell, 2011. "The regional effects of military base realignments and closures," ERSA conference papers ersa10p840, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa10p840
    as

    Download full text from publisher

    File URL: http://www-sre.wu.ac.at/ersa/ersaconfs/ersa10/ERSA2010finalpaper840.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    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. 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.
    3. 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.
    4. 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.
    5. 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.
    Full references (including those not matched with items on IDEAS)

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa10p840. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier). General contact details of provider: http://www.ersa.org .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.