Sub-Regional Impact Multipliers: Income Spread Effects from a Major Defense Installation

The principal intraregional mechanisms for income spread effects are work force commuting and procurement purchasing of major economic activities. A framework is articulated for estimating total income which accrues to peripheral communities from a specific income source. The relationship between generated community income and total direct regional income attributable to the activity define a sub-regional impact multiplier. Key elements in the framework include a gravity model formulation for replicating commuting patterns and community trade multipliers for estimating indirect income effects. A case study of the Badger Army Ammunition Plant provides an indication of the spatial extent of spread effects while focusing on the influence of urban size and distance variables which characterize the peripheral nonmetropolitan and metropolitan communities.