UP504 • Economic Analysis last modified: Wednesday, March 26, 2008 4:40 PM

Dates: March 24, 26

Overview

We spend two sessions examining several common tools and measures of local economic analysis:

• economic base analysis (multiplier)
• location quotients
• cost-benefit analysis
• gravity model [simple version]
• [time permitting]: shift-share analysis

Downloadable resources

basic Excel tools for planning analysis (Excel file)

also: two excel files on shift share: Michigan/South Carolina/US file • California

Readings

North, Douglass C. "Location Theory and Regional Economic Growth." Journal of Political Economy, Vol. 63, No. 3, June 1955, pp. 243-258. [electronic reserves]

Power, Thomas Michael. "Thinking About the Local Economy," in Lost Landscapes and Failed Economies: The Search for a Value of Place. Washington, D.C., Covelo, CA Island Press, 1996, pp. 7-28. [electronic reserves] (a challenge to traditional approaches to local economics)

Tiebout, Charles M. "Exports and Regional Economic Growth." Journal of Political Economy, Vol. 64, No. 2, April 1956, pp. 160-164. [electronic reserves]

The Web Book of Regional Science, Regional Research Institute, West Virginia University, including:

• Edgar M. Hoover and Frank Giarratani, An Introduction to Regional Economics [a classic text, updated]. see Appendix 12-1 The Shift-Share Analysis of Components of Regional Activity Growth. (The Web Book of Regional Science, Regional Research Institute, West Virginia University).
• Edward M. Bergman and Edward J. Feser, Industrial and Regional Clusters: Concepts and Comparative Applications: (section on Location Quotients)
• William A. Schaffer, Regional Impact Models. see Chapter 2: Regional Models of Income Determination: Simple Economic-Base Theory (on multipliers and location quotients)
  
  

See also:

Doeringer, Peter B., and David G. Terkla "Business Strategy and Cross-Industry Clusters." Economic Development Quarterly, Vol. 9, No. 3, 1995, pp. 225-237. [electronic reserves]

Felsenstein, Daniel, and Joseph Persky. "When Is a Cost Really a Benefit? Local Welfare Effects and Employment Creation in the Evaluation of Economic Development Programs." Economic Development Quarterly, Vol. 13, No. 1, February 1999, pp. 46-54. [electronic reserves]

Isserman, Andrew and Terance Rephann. "The Economic Effects of the Appalachian Regional Commission: An Empirical Assessment of 26 Years of Regional Development Planning." Journal of the American Planning Association, Vol. 61, No. 3, Summer 1995, [electronic reserves]

Tiebout, Charles M. "A Pure Theory of Local Expenditures." Journal of Political Economy, Vol. 64, No. 5, October 1956, pp. 416-424. [electronic reserves]

Nelson, Arthur C. "Prosperity or Blight? A Question of Major League Stadia Locations." Economic Development Quarterly, Vol. 15, No. 3, August 2001, pp. 255-265. [electronic reserves]

Shift & Share Analysis (Prof. Günter Krumme web site, Dept. of Geography, University of Washington).