I. Final Quiz: (1/2 hour)

Select TWO of the following questions: (equal weight)

1) Explain a) what the "Leontief Coefficient" represents,
b) how it is derived (in general terms);
c) how it is applied; and
d) what the limitations or assumptions might be when it is applied to analytical situations of your choice.

2) The "proportional" or "product mix" effect in shift/share analysis has something to do with regional economic structure.
a) Explain what this relationship is;
b) what the role of these effects is in shift/share analysis; and
c) what exactly does it mean when this effect turns out to be either positive or negative (even if the differential/regional/local-factor effect has the opposite sign?)

3) Explain the use of the location quotient in (a) economic base and (b) input-output analysis. Briefly argue for and against these procedures. What are the assumptions made when using the L.Q. for these purposes?

Last Assignment (due: December 11) Select 2 of the following tasks:

1) We have learned that localities and regions may experience economic growth on the basis of their exports and the resulting multiplier effects. Yet, we have also learned that (ceteris paribus -- all other things equal) as the region under consideration increases in size, exports decrease in relative importance and the size of multipliers tends to increase. (For the world as a whole, there are no exports anymore which we could multiply by a multiplier). Would your conclusion be that we should scrap the economic base model? Explain your arguments in detail.

2) Another objective of our class was to gain an appreciation for the need to trace linkages and interdependencies and therefore to connect models (which deal only with a limited subset of such linkages) to each other and thereby create larger models. In this spirit, you are asked to suggest a connection between an input-output model and a land use model. Using our Holukuluku model (tables are available online and were distributed as handouts), and assuming that you want to trace the impact of an expected doubling in output of sector 5 (from 5 to 10 million) on the residential real estate market, suggest how you would go about establishing and calculating such impacts, what kind of additional data you would need and what assumptions you would have to make in order to make good use of our (which?) Holukuluku tables? In your argument, make use of some calculations of coefficients which demonstrate that you have understood the basics of input-output analysis (similar to the calculations which we suggested in class).

3) Develop a richly annotated outline for an economic impact analysis of some project associated with your class-related area of interest. In your introduction, identify (among other things you might want to say) the purpose of such an analysis. Then develop a rather detailed categorization of different kinds of economic impacts you feel you could address in such a study and (wherever possible) suggest analytical tools which you would expect to assist you in the analysis and explain their application. Make as much use of existing impact studies you may find (possibly, but not necessarily, including the university-impact study which I urged you to consult).

Please note: