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

Abstract

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The Importance of Integrating Supply‐Side Factors in Economic Base Models

“…By contrast, classifications based on various local mobility features and amenity endowments are relevant to improving the accuracy and validity of EBMs. Moreover, the use of certain econometric techniques (such as error‐correction models in time‐series data) could provide an even more dynamic character to the models (see notably Droff and Paloyo :390; Lesage ). Thus, contrary to Margarian (), the effect of coordination is not necessarily convergent but could be path‐dependent unequal development.…”

“…These models are still frequently used in regional economics, despite the various critiques leveled over the past 30 years (Kilkenny and Partridge ; Krikelas ; Richardson ). The main issue concerns their inability to improve the estimations' robustness and their lack of adaptability to various regional and sector contexts, e.g., closure of industries, such as defense (Droff and Paloyo ), sustainable management of natural resources in Europe (Guimarães et al ), or tourism and culture in the U.S. (Markusen ; Mulligan, Jackson, and Krugh ).…”

The Economic Effect of Military Facility Contraction: A Naval Case Study

“…As with all existing models, it has both strengths and weaknesses. The input-output technique is effective in defining the sectors most likely to be impacted both directly and indirectly from an economic setback 8 . It is, however, a static model, which by its nature, does not pick up other mitigating factors that might be occurring at the same time.…”