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Assessing the Regional Economic Impacts of Defense Activities – A Survey of Methods

Author

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  • Droff, Josselin
  • Paloyo, Alfredo R.

Abstract

Defense activities exercised in a specific region may alter the region's economic performances. An accurate assessment of the potential economic impacts of defense activities within a specific area is therefore a valuable undertaking, especially for regional planners who may want to prepare for changes. The variety in the methodological landscape, counting, among others, input-output models, economic base models, Keynesian regional multipliers, fixed-effects estimators, and casestudy approaches inspired by geography, sociology, or political science may pose a dilemma. In this paper, we detail the historical and theoretical background of each method, as well as select exemplary cases where these methods were successfully or inappropriately applied. By examining old and 'new' methods based on the extant literature in regional economics, we aim to construct a methodological typology that could be extremely valuable to all stakeholders.

Suggested Citation

  • Droff, Josselin & Paloyo, Alfredo R., 2013. "Assessing the Regional Economic Impacts of Defense Activities – A Survey of Methods," Ruhr Economic Papers 417, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    • Handle: RePEc:zbw:rwirep:417
    DOI: 10.4419/86788472
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    Cited by:

    1. Strazzera, Elisabetta & Meleddu, Daniela & Atzori, Rossella, 2022. "A hybrid choice modelling approach to estimate the trade-off between perceived environmental risks and economic benefits," Ecological Economics, Elsevier, vol. 196(C).
    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.
    3. Gert-Jan Hospers, 2025. "Serving the Region? The Role of the Defense Sector in Europe’s Regional Development," EconPol Forum, CESifo, vol. 26(04), pages 68-75, October.
    4. Dramane, Abdoulaye, . "The Nexus between Military Spending, Tax Revenues and Economic Growth in the G5 Sahel Countries," African Journal of Economic Review, African Journal of Economic Review, vol. 10(2).
    5. Muhammad Azam & Faisal Khan & Khalid Zaman & Amran Md. Rasli, 2016. "Military Expenditures and Unemployment Nexus for Selected South Asian Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(3), pages 1103-1117, July.
    6. Jean-Bernard Marsat & Boris Kokou & Jacques Veslot & Etienne Polge, 2024. "Tourist frequentation and its economic effects: challenges for the policies of management and valorization of natural heritage sites [La fréquentation touristique et ses effets économiques : des en," Post-Print hal-04796161, HAL.
    7. Bechara, Peggy & Eilers, Lea & Paloyo, Alfredo R., 2015. "In Good Company – Neighborhood Quality and Female Employment," Ruhr Economic Papers 535, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    8. Lea Eilers & Alfredo R. Paloyo & Peggy Bechara, 2022. "The effect of peer employment and neighborhood characteristics on individual employment," Empirical Economics, Springer, vol. 62(4), pages 1885-1908, April.

    More about this item

    Keywords

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    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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