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Economic base multipliers: a comparison of ACDS and IMPLAN
Author(s) -
Mulligan Gordon,
Jackson Randall,
Krugh Amanda
Publication year - 2013
Publication title -
regional science policy and practice
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.342
H-Index - 8
ISSN - 1757-7802
DOI - 10.1111/rsp3.12010
Subject(s) - multiplier (economics) , metropolitan area , economic base analysis , economics , human capital , economic impact analysis , base (topology) , econometrics , computer science , microeconomics , macroeconomics , economic growth , mathematics , geography , mathematical analysis , archaeology
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 A rizona C ommunity D ata S et ( 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.