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Economic Base Multipliers: A Comparison of ACDS and IMPLAN

Author

Listed:
  • Gordon Mulligan

    (University of Arizona, School of Geography and Development)

  • Randall Jackson

    (Regional Research Institute, West Virginia University)

  • Amanda Krugh

    (USDA Rural Development)

Abstract

Many local and regional practitioners still use the single multiplier version of economic (export) base analysis in project assessments. However, dependable estimates of this multiplier require that the division of total activity into its export (basic) and local (non-basic) components be reasonably accurate across all industries. This paper compares the economic base multiplier that is generated by a shortcut approach, one calibrated by the Arizona Community Data Set (ACDS), with that generated by the popular IMPLAN input-output model. The comparison is made across 577 micropolitan (all non-metropolitan) US counties in the year 2000. Although the two approaches are not at all similar they generate comparable economic base multipliers. Moreover, various regional attributes, like human capital and specialization, affect the two multiplier estimates in much the same way.

Suggested Citation

  • Gordon Mulligan & Randall Jackson & Amanda Krugh, 2012. "Economic Base Multipliers: A Comparison of ACDS and IMPLAN," Working Papers Research Paper 2012-02, Regional Research Institute, West Virginia University.
    • Handle: RePEc:rri:wpaper:2012rp02
    DOI: 10.1111/rsp3.12010
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    Cited by:

    1. Oriane Lafuente-Sampietro, 2021. "The multiplier effect of convertible local currencies : case study on two French schemes," Working Papers halshs-03324625, HAL.
    2. Dudensing, Rebekka & Guerrero, Bridget & Amosson, Steve, 2019. "Evaluating the Accuracy of Regional Economic Impact Estimates: Considering a 2013 Beef Plant Closure in Texas," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 49(1), May.
    3. Gkouzos, Andreas, 2022. "The efficiency of basic economic branches in Greek regions: Evidence from Data Envelopment Analysis," MPRA Paper 112310, University Library of Munich, Germany.

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    More about this item

    Keywords

    economic base multiplier; ACDS; IMPLAN; micropolitan; regional features;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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