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An Assessment Of The Assignment Method In Economic Base Analysis

Author

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  • Gordon F. Mulligan

    (University of Arizona)

  • Alexander C. Vias

    (University of Arizona)

Abstract

Numerous techniques have been devised to make economic base analysis more cost-effective. The simplest of these, the assignment or assumption method, allocates the entire employment (income) of each industry to either the basic or nonbasic sector of the regional economy. Unfortunately, employment data have not been generally available in a form appropriate for evaluation of the assignment method. This paper combines a unique body of survey-generated employment data with OLS regression procedures in providing such an evaluation. Competing values of economic base multipliers, derived from the assignment method and the "correct" benchmark method, are estimated for various types of communities. These estimates, reflecting two rather different interpretations of the economic base logic, are shown to be remarkably similar in size, but not in composition. The study uses the Arizona Community Data Set, a data base covering 47 towns in the U.S. Southwest.

Suggested Citation

  • Gordon F. Mulligan & Alexander C. Vias, 1996. "An Assessment Of The Assignment Method In Economic Base Analysis," The Review of Regional Studies, Southern Regional Science Association, vol. 26(3), pages 265-284, Winter.
    • Handle: RePEc:rre:publsh:v:27:y:1996:i:3:p:265-284
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    References listed on IDEAS

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    1. Steven J. Weiss & Edwin C. Gooding, 1968. "Estimation of Differential Employment Multipliers in a Small Regional Economy," Land Economics, University of Wisconsin Press, vol. 44(2), pages 235-244.
    2. Andrew M. Isserman, 1980. "Estimating Export Activity in a Regional Economy: A Theoretical and Empirical Analysis of Alternative Methods," International Regional Science Review, , vol. 5(2), pages 155-184, August.
    3. James E. McNulty, 1977. "A Test of the Time Dimension in Economic Base Analysis," Land Economics, University of Wisconsin Press, vol. 53(3), pages 359-368.
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    Cited by:

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    2. Reeder, Richard J. & Calhoun, Samuel D., 2001. "Federal Funding in the South: Bringing Home the Bacon, but Where's the Beef?," The Review of Regional Studies, Southern Regional Science Association, vol. 31(1), pages 1-12, Summer.
    3. Vollet, Dominique & Roussel, Veronique & Callois, Jean-Marc, 2005. "Impact of Retirees on Rural Development: Some Observations from the South of France," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 35(2), pages 1-15.
    4. Xiang, Junyi & Liu, Chenhao & Li, Yiming, 2021. "The impact of household real estate and self-employment: Evidence from China," Economic Modelling, Elsevier, vol. 94(C), pages 873-884.
    5. Jean-Paul Bousset & Dominique Vollet, 2003. "Apports de l'analyse des ensembles approximatifs à une application de la méta-analyse en économie régionale. Illustration à partir des modèles de la base économique," Revue d'économie régionale et urbaine, Armand Colin, vol. 0(5), pages 773-798.

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