Select 3:
1. Under what conditions would you recommend using a cut-off point
different from one when the location quotient is used to identify the
economic base of a region? Give one specific example for which you would
then identify whether the cut-off point of "1" would underestimate or overestimate the
basic activities of the region.
.
2. The regional employment multiplier would increase or decrease
or be unaffected if we were to switch the region for which would calculate
such a multiplier from King County to Washington State or from the Puget
Sound Area to the Pacific Northwest, i.e. increase the size of the region?
Why?
[However, one could make the argument, of course, that there is a tendency that not "all things are equal". For example, one could argue that different regions contain different economic activities with employees at different earning levels. Thus, per employee, more money is likely to be spent in the local economy generating more local employment. Thus, as you aggregate economic activities and households to larger regions, it may happen that you "dilute" the larger employment multipliers of a small region with the lower multipliers of the additional areas and thereby reduce the aggregate multiplier. However, it is unlikely this effect can outweigh the "regional increase effect" for very long.]
Please note that the local employment multiplier (total employment
per
basic employee) tend to respond differently to increased income than the
local income multiplier (total income per dollar of basic income),
since the employment effect (additional non-basic workers generated by the
total locally spent income of one basic worker) may still be substantial
even if the "pcl" is relatively small (see Microsoft's local impacts
e.g. in Redmond WA).
.
3. Would you expect the "pcl" component of a local income multiplier to be
larger or smaller (or be the same) in a high-per-capita income region
compared with a low per-capita-income region? Why?
.
4. Identify and define one index or measure in network analysis. Also
describe what this index measures.