兰德-The-Armys-Local-Economic-Effects_-Appendix-B,-Volume-II_-Mississippi-Through-Wyoming_447页_26mb

The Army's Local Economic Effects: Summary

Core Content

This document presents an empirical analysis of how Army spending affects local economies in the states of Mississippi and Missouri, focusing on economic output, employment, and the broader economic effects across different congressional districts. The findings are part of a larger report commissioned by the U.S. Army Quadrennial Defense Review Office to understand the economic impacts of budget changes on Army communities.

Main Report Overview

The report is structured to provide detailed economic effects of Army spending at the district and state level. It explains the methodology and terminology used in the analysis, including the use of input-output models and data sources. The analysis includes both direct and indirect economic effects, and the results are presented in 2012 dollars due to inflation adjustments.

Key Concepts

• All Army Direct Spending: This is the primary input into the economic models and includes all spending on procurement, personnel (including Regular Army, Army National Guard (ARNG), and U.S. Army Reserve (USAR)), and civilian and retiree payments within a region.
• Additional Economic Output: This represents the estimated economic activity supported by Army-generated demand, including indirect and induced effects from both in and out-of-region spending.
• Army-Driven Economic Output: The sum of all Army direct spending assumed to stay in the district and the additional economic output.
• All Army Direct Employment: Total number of individuals employed by the Army, including military and civilian personnel, but not retirees or survivors.
• Additional Employment: Non-Army employment associated with additional economic output, derived from IMPLAN data.
• All Army Personnel and Additional Employment: Total employment supported by Army spending, including direct and indirect jobs.

Methodology and Limitations

• The output multiplier ratio, which is used to estimate economic impact, may overestimate the local impact due to the inclusion of both in-region and out-of-region Army spending.
• Subcontracting can lead to discrepancies between Army direct spending and the change in final demand within a district.
• The analysis does not include employment data from Army spending in other regions, and individuals who have multiple residences are counted in each district, which may affect accuracy.

Key Findings for Mississippi

• FY 2012:

  • Total Army Direct Spending: $1,474,559,860
  • Total Additional Economic Output: $4,159,641,969
  • Total Army-Driven Economic Output: $5,634,201,829
  • Total Army Direct Employment: 19,952
  • Total Additional Employment: 41,818
  • Total All Army Personnel and Additional Employment: 61,770

• FY 2013:

  • Total Army Direct Spending: $1,302,781,544
  • Total Additional Economic Output: $3,437,715,854
  • Total Army-Driven Economic Output: $4,740,497,397
  • Total Army Direct Employment: 19,428
  • Total Additional Employment: 32,786
  • Total All Army Personnel and Additional Employment: 52,214

• FY 2014:

  • Total Army Direct Spending: $1,026,484,219
  • Total Additional Economic Output: $2,573,782,289
  • Total Army-Driven Economic Output: $3,600,266,508
  • Total Army Direct Employment: 18,326
  • Total Additional Employment: 23,629
  • Total All Army Personnel and Additional Employment: 41,955

The economic effects are broken down by congressional districts, with detailed tables and maps provided for each. For example, in FY 2014, District 2 had the highest Army-Driven Economic Output at $1,662,530,225.

Key Findings for Missouri

• FY 2014:
  • Total Army Direct Spending: $2,297,333,400
  • Total Additional Economic Output: $4,516,123,388
  • Total Army-Driven Economic Output: $6,813,456,788
  • Total Army Direct Employment: 49,991
  • Total Additional Employment: 37,713
  • Total All Army Personnel and Additional Employment: 87,704

The economic effects are also broken down by congressional districts, with detailed tables provided for each.

Summary of Economic Impact

The report highlights the significant economic contributions of the Army to local communities, including direct spending, additional economic output, and employment effects. The analysis is crucial for informing budget decisions and understanding the broader economic implications of Army spending.