WNC Index and Report - December Release
Economic activity was flat for December 2005, remaining
unchanged from the previous month’s index of 119.5. The slowdown
corresponded to similar trends at the national level, according to Todd
Cherry, an economist at Appalachian State University. "While regional
economic activity slowed, the employment picture for the region
continued to make gains in December," Cherry said. "The number of jobs
increased, unemployment was lower, and initial claims for unemployment
also are lower." Trends for the entire year also ended on a positive
note. "Regional job growth for 2005 was just under 2 percent, which
translated to about 10,500 new jobs," Cherry said. "There are about
3,500 fewer unemployed people in the WNC workforce than a year ago."
Commercial Apple Cideries in WNC
This study, funded by the Z. Smith Reynolds
Foundation, explores whether hard cider--cider that contains
alcohol--could provide an economic jolt for the region. Hard cider
is making a comeback in the United States with about 30 cideries in
operation, and existing activity in wine and apples may cause commercial
apple cideries to be a viable opportunity for economic development.
For more information, contact Jean-Pierre Courbois.
Wind Energy in WNC
A recent study funded by the NC State Energy
Office sheds light on the primary issues surrounding the potential
development of utility-scale wind energy production in WNC. The
region has highly rated wind resources that could make wind energy a
viable option for energy and development, but the region also presents
many challenges for the future of wind generated energy in WNC. This
study explores the environmental and economic issues regarding wind energy
development in WNC. For more information, contact Todd Cherry.
The WNC Ski Industry
A recent study funded by the NC Ski Areas
Association found that skiers spent $67.7 million combined on skiing,
lodging, meals and on other expenses last season, and the ski industry
had a total economic impact of almost $120 million. "The results
of this survey of spending behavior are significant for two reasons,"
Millsaps said. "One is that the magnitude of the spending is large, and,
the other is the timing of the spending during the winter months when
the number of visitors to the area is small." A total of 544,219 skiers
visited N.C. slopes in 2002-03. They spent an average of $124 a day on
skiing, lodging, meals and other expenses. Spending at area resorts
alone totaled $23.5 million, compared with $5.7 million spent in the
1976-77 season when 338,000 skiers visited the slopes. For more
information, contact Steve Millsaps.
Regional Income Growth and Convergence
This paper empirically tests if U.S.
regional per capita incomes are stochastically converging. We advance
the issue by employing a LM panel unit root test that allows for
region-specific structural breaks in compensating differentials. Both
the number and location of the breaks are endogenously determined for
each region. The results provide compelling evidence that U.S. regional
incomes are conditionally converging. For more information,
contact Mark Strazicich.
The Arts in Watauga County
We study the economic impact of arts in
Watauga County and find people spent almost $6.2 million to attend arts
events during a given year and that they spent an additional $4.9
million on indirect expenses such as restaurants and lodging. It was
also determined that sales revenue projections for the arts were more
than $7.2 million per year while payroll expenses for all 355 arts
organizations and artists was almost $7.5 million. The resident survey
found that 55 percent of respondents were either interested or very
interested in the arts while 34 percent we not interested at all. The
study concluded that the average amount county residents were willing to
pay every year to continue the level of the arts was $15 per taxpayer
for a total value of almost $540,000. For more information,
contact Todd Cherry.
WNC Index and Report - July Release
Western North Carolina’s economy stumbled in
July. It was the first time in 14 months the region’s economy failed to
grow, according to the Western North Carolina Economic Index. The index,
which tracks the level of economic activity in 25 WNC counties, remained
unchanged at 117.8. While the economy was flat in July, the three-month
average growth rate remains strong at a growth rate of 3.2 percent.
The Economic Value of Professional Sports
Using the Contingent Valuation Method, this
paper estimates the value of public goods the National Football League’s
Jaguars produce for Jacksonville, Florida, including the value of
elevating Jacksonville to major league status. It also estimates the
incremental value of public goods potentially produced by a National
Basketball Association team in Jacksonville. The present value of public
goods created by the Jaguars is $25 million or less, far below subsidies
provided to attract the Jaguars. For a basketball team, the figure is
less than $12.7 million. Sports public goods probably cannot justify the
large public expenditures on stadiums and arenas. For more
information, contact John Whitehead.
Regulation and Economic Growth
We investigate the relationship between
federal regulation and macroeconomic performance. We find that
regulation has statistically and economically significant effects on
aggregate output and the factors that produce it - total factor
productivity, physical capital, and labor. The effects are multifaceted
and complex. Regulation changes the way output is produced by changing
the mix of inputs. Changes in regulation and marginal tax rates offer an
explanation for the productivity slowdown of the 1970s. Regulation also
has substantial opportunity costs in the form of foregone output.
For more information, contact John Dawson.
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