Economic Impact Analysis - Other Methods         
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Thompson, E. and A. Chandra. 1997. The Impact of Interstate Highway Construction on Economic Growth. April 17-19, 1997. Memphis: Paper presented at the 36th Meeting of the Southern Regional Science Association

This paper focused on the impact of interstate highways on non-metropolitan counties. Previous studies focused on the impact of highways on both metropolitan and non-metropolitan counties. The authors used a fixed-effects econometric model to examine their hypotheses. The results from the analysis confirm the hypothesis that manufacturing earnings would increase in non-metropolitan counties due to an opening of an interstate highway. The authors rejected the hypothesis that a new interstate would increase total county earnings. The findings indicated that a new highway had different impacts on certain industries. Highway location can lead to a loss in earnings in farming, retail trade and government, while increasing earnings in manufacturing, transportation, communications and public utilities, services and finance, insurance and real estate. Over time the highway can lead to increased earnings for the retail trade. Thus, despite the perception that opening an interstate highway will lead to economic growth, this research suggested that interstate highways would only have a limited impact.

Tooman, L. A. 1997. "Application of the Life-Cycle Model in Tourism." Annals of Tourism Research 24(1):214-234.

The destination life-cycle model was applied to the Smoky Mountain region in order to better understand the economic effects of the tourism industry over time. The model fits the region sufficiently well to be useful in analysis of the evolution of second- and third-order economic impacts. Based on the evidence, tourism as an economic force for development has limitations, but is more likely beneficial if it does not become a dominant sector of the economy. Under conditions where tourism became the dominant economic sector, social welfare indicators failed to show significant improvement. When an emerging tourism industry does not dominate the local economy, economic diversity is maintained, higher levels of local linkages have a greater chance of being established, and fewer inviting signals are emitted to outside investors.

Leatherman, J. C. and D. W. Marcouiller. 1996. "Estimating Tourism's Share of Local Income From Secondary Data Sources." Review of Regional Studies 26(3):317-340. (UW Extension Report 97.4, May 1997)

This paper presents an alternative method for generating county-level estimates of employee compensation attributable to tourism based on secondary data sources. The procedure used principal components and cluster analyses to establish regions matched by tourism structure. The minimum requirements technique was then used to estimate the share of employee compensation attributable to nonlocal demand. The procedure was applied to Wisconsin counties to estimate tourism shares attributable to travelers and recreational homeowners. The principal components analysis showed Wisconsin tourism is driven by variable combinations of three components: urban tourism, outdoor-based activities, and natural parks/specialty tourism. Minimum requirements generated county-level estimates of non-local demand for disaggregated tourism-sensitive business.

Marcouiller, D. W. 1994. Tourism-Related Labor Returns in Northern Wisconsin. Staff Paper 94.1. Madison, WI: Tourism Research and Resources Center, University of Wisconsin-Extension.

Travelers and recreational homeowners are important sources of demand for firms operating in heavily tourism-oriented regions. Returns to labor resources employed in tourism-related firms provides important detail of the economic development implications of tourism development on rural forested regions. This study analyzes employee compensation in two regions of Northern Wisconsin by industry. The export share of these returns to labor resources is identified using a minimum requirements technique. Results indicate that the export shares exceed fifty percent in many important service, real estate, and construction industries within this region.

Kottke, M. 1988. "Estimating the Economic Impacts of Tourism." Annals of Tourism Research 15:122-133.

Linear programming is used to estimate the potential economic impact of tourism growth for three growth scenarios and a benchmark situation in New London County, Connecticut. Linear programming, as compared to input-output models, multiplier, cost-benefit analysis or simple inventory/budget approaches, can be used to answer the question of what would be the most appropriate types of tourism businesses or enterprises for a community. The objective function of model was formulated to maximize gross tourism income. For each scenario, an increase in tourism visits was used in the model to predict gross tourism income, land use and labor. The most efficient mix of new firms was also predicted with the typology of motels, eating/drinking firms, marinas, sport shops and auto service stations.

Dwyer, J. F. and R. D. Espeseth. 1977. Improved Local Planning for Reservoir Orientated Recreation Opportunities. Research Report Urbana, IL: Water Resources Center, University of Illinois.

This report looks at the actual impact of the construction of the Lake Shelbyville reservoir. Prior to construction there were relatively high expectations as to the number of recreationists likely to visit Lake Shelbyville on an annual basis - 4.7 million - who would spend on average $3.4 dollars per day. The Lake had no real discernible impact on county population trends nor income levels and total number of visitors has been approximately 3 million on average. The study uses various indirect measuring techniques to determine weather recreationists of have much economic impact on the surrounding communities. Quarterly tax revenue was used to create location quotients by sector and regression analysis of total monthly sales was conducted. Some minimal impact from recreation activities was detected. In summary, the impacts of recreationists on the local economy is estimated to be between $2 - $4.2 million, which is much less than the $15 million originally predicted.

Phillips, G. D. 1977. Environmental Assessment of the Kickapoo River Impoundment II: An Assessment of Economic Impact. IES Report 91. Madison, WI: Institute for Environmental Studies, University of Wisconsin.

This report empirically examines the impact of the proposed and then terminated Kickapoo River flood control and recreation reservoir project. The report is divided into six parts. Part one analyzes real estate activity in the area of the site using an econometric model. Part two examines the developmental experience of other man-made lakes in the area. Part three uses a qualitative analyses to examine the experience of six villages in the vicinity of the dam. Part four examines the effect on local highways from recreation use. Part five analyzes the impact of land acquisition for the project on the local property tax base, fiscal capacity and current property tax burden. Finally, in part six, alternative development plans are studied to see if they might provide economic benefit to the area. This report offers a methodology that can be used for evaluating projects in advance of construction.

Hannon, J. T. and D. M. Littig. 1971. Regional Economic Impact of Proposed Interstate 57. Madison, WI: Bureau of Policy Planning, Department of Transportation.

This paper analyzed the probable economic impact of a new interstate highway between Milwaukee and Green Bay on the regional economy. The authors used shift-share analysis to evaluate the impacts of the proposed highway. They found that a new interstate highway would have a positive impact on the regional economy, because of the area's strong and diverse manufacturing base, higher rates of growth have been evident along Interstates in Wisconsin, and the highway will provide locational advantages.

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