MULTIPLE LABOR GROUPS AND THEIR EFFECTS ON SMALL CITY AND TOWN SAMS AND CGE MODELS

Walter Schwarm and Harvey Cutler

Review of Urban & Regional Development Studies, 2005, vol. 17, issue 2, 162-176

Abstract: This paper extends Schwarm and Cutler (2003) by incorporating three labor groups while using their methods to source data and provide an organizational framework that allows effective and straightforward creation of social accounting matrices (SAMs) and regional computable general equilibrium (CGE) models. While CGE models typically describe relatively large geographical areas and are therefore not able to capture the uniqueness of individual cities or towns within the region, our model allows simulations of small cities and towns that highlight regional similarities or differences. The differing effects of both an increase in manufacturing and a change in the sales tax are examined to demonstrate the insights and regional characteristics that such methods allow a researcher to obtain.

Date: 2005
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