Modeling the Economic Impacts of Large Deployments on Local Communities
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The Global War on Terrorism has required the large scale deployment of active-duty troops to support operations in Afghanistan and Iraq. This thesis presents an economic analysis of the impacts these deployments have had on local communities as measured by changes in local retail sales. County level data from Colorado, Kansas, North Carolina, and Tennessee were combined with open source deployment information to construct panel models. Panel model analysis is a form of regression that combines cross-sectional and time-series dimensions. Seasonality and general economic conditions were also inc...
The Global War on Terrorism has required the large scale deployment of active-duty troops to support operations in Afghanistan and Iraq. This thesis presents an economic analysis of the impacts these deployments have had on local communities as measured by changes in local retail sales. County level data from Colorado, Kansas, North Carolina, and Tennessee were combined with open source deployment information to construct panel models. Panel model analysis is a form of regression that combines cross-sectional and time-series dimensions. Seasonality and general economic conditions were also incorporated into the model. The goal of this research is to provide an empirical model to community leaders and federal agencies that addresses the potential effects of continued deployments. The results of this research have demonstrated that the deployment of brigade size units decrease the level of retail sales in a county by 0.3 percent, which leads to losses in local governmental revenue.
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