Employment Multipliers and Functional Types of Communities: Effects of Public Transfer Payments

ABSTRACT The Arizona Community Data Set (ACDS) now contains the results of 40 separate establishment-level, community-wide surveys. These communities can be classified into different functional types, and OLS regression models can be used to explore the relationships among community functions, levels of public transfer payments, and magnitudes of economic base multipliers. The statistical analysis suggests that employment-derived estimates of the base multiplier tend to be biased upward unless transfer payments are specified in the model.