The Army's Local Economic Effects
Mar 8, 2021
This report presents findings on the economic activity supported by total Army spending in each of the 435 congressional districts for fiscal years 2012–2014. Using input/output models, researchers estimated that in FY 2014, the Army directly spent approximately $121 million in the median congressional district (in 2012 dollars), translating into about 4,200 jobs and contributing to $375 million of economic output.
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This report was superseded by a revised, updated edition in early 2021.
This report presents findings on the economic activity supported by total Army spending in each of the 435 congressional districts in fiscal years 2012–2014. To estimate this activity, researchers used district-level input-output (I/O) models and a national-level I/O model known as IMPLAN. Each district-level model is used to estimate the direct, indirect, and induced effects of national-level Army spending that affects a particular district. In this context, direct effects are the total Army spending within a district; indirect and induced effects represent the local economic activity that supports both the direct spending and the in-district demand generated from Army spending outside the district. Indirect effects capture interindustry linkages, while induced effects capture the effects of household incomes.
For each congressional district, this report provides the following estimates:
Results are aggregated by state and the economic activity associated with Army spending is separated by component where applicable.
Preprocessing of Direct Army Spending Data
Alabama—Minnesota (available separately)
Mississippi—Wyoming (available separately)
This research was sponsored by the U.S. Army, G-8, and conducted within the Strategy and Resources Program, a part of the RAND Arroyo Center.
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