ASSESSING THE REGIONAL ECONOMIC IMPACTS OF DEFENSE ACTIVITIES: A SURVEY OF METHODS

Josselin Droff and Alfredo Paloyo

Journal of Economic Surveys, 2015, vol. 29, issue 2, 375-402

Abstract: Defense activities exercised in a specific region may alter the region's economic performance. An accurate assessment of the potential economic impacts of defense activities is a valuable undertaking to enable regional planners to prepare for changes. The variety in the methods (among others, input–output models, economic base models, Keynesian regional multipliers, fixed-effects estimators, and case-study approaches) inspired by geography, sociology, and political science can pose a dilemma. We detail the historical and theoretical background of each method, as well as select exemplary cases where these methods were applied. By examining old and “new” methods, we aim to construct a typology that could be valuable to all stakeholders. In this sense, defense economics can also contribute to the allied social sciences by outlining evaluation methods that may be applicable to other fields.

Date: 2015
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Working Paper: Assessing the regional economic impact of defense activities: a survey of methods (2015)
Working Paper: Assessing the regional economic impact of defense activities: a survey of methods (2014)
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