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The regional economic effects of military base realignments and closures in Germany

Journal Article


Abstract


  • We identify the causal effect of a reduction in military personnel on a number of socioeconomic indicators within the peripheries of military bases. The base realignments and closures in Germany are used as an exogenous source of variation that allows us to identify the effect of a demand shock on household income, output, unemployment, and tax revenue within a specified buffer zone around each base. The analysis covers 298 communities for the period 2003-2007. Consistent with evidence found elsewhere, we find that these base adjustments have only a marginal impact on the local community in which the bases are located.

UOW Authors


  •   Paloyo, Alfredo
  •   Vance, Colin (external author)
  •   Vorell, Matthias (external author)

Publication Date


  • 2010

Geographic Focus


Citation


  • Paloyo, A. R., Vance, C. & Vorell, M. (2010). The regional economic effects of military base realignments and closures in Germany. Defence and Peace Economics, 21 (5), 567-579.

Scopus Eid


  • 2-s2.0-78650245599

Ro Metadata Url


  • http://ro.uow.edu.au/buspapers/233

Has Global Citation Frequency


Number Of Pages


  • 12

Start Page


  • 567

End Page


  • 579

Volume


  • 21

Issue


  • 5

Place Of Publication


  • United Kingdom

Abstract


  • We identify the causal effect of a reduction in military personnel on a number of socioeconomic indicators within the peripheries of military bases. The base realignments and closures in Germany are used as an exogenous source of variation that allows us to identify the effect of a demand shock on household income, output, unemployment, and tax revenue within a specified buffer zone around each base. The analysis covers 298 communities for the period 2003-2007. Consistent with evidence found elsewhere, we find that these base adjustments have only a marginal impact on the local community in which the bases are located.

UOW Authors


  •   Paloyo, Alfredo
  •   Vance, Colin (external author)
  •   Vorell, Matthias (external author)

Publication Date


  • 2010

Geographic Focus


Citation


  • Paloyo, A. R., Vance, C. & Vorell, M. (2010). The regional economic effects of military base realignments and closures in Germany. Defence and Peace Economics, 21 (5), 567-579.

Scopus Eid


  • 2-s2.0-78650245599

Ro Metadata Url


  • http://ro.uow.edu.au/buspapers/233

Has Global Citation Frequency


Number Of Pages


  • 12

Start Page


  • 567

End Page


  • 579

Volume


  • 21

Issue


  • 5

Place Of Publication


  • United Kingdom