PPM
PPPM 446/546 - PROJECT 2 (with Addendum)
NAME: ______________________
To use this worksheet, click on the “Enable Editing” box at the top.
Project 2 consists of nine questions. Type in your answer within the boundaries of each text box. (Note: Place your cursor inside each text box and left click before typing in your answer.)
Data to answer Questions 1-4 can be found in Tables 6.5 and 6.6 at the end of Chapter 6 and information about each question can be found in the Project 2 Addendum, pages 4-5.
Grading: The point value for each component is indicated, and there is a total of 18 points possible for completing the project.
Suggestion: For the next three questions, you may find it helpful to set up an Excel worksheet that correctly calculates all of the values that are given in the textbook.1 Then, simply change the values on the worksheet to get the answers to the questions.
Question 1 (2 parts, 1 point each) (see addendum, item I. page 4):
In West Central Georgia, what would the proportional shift in Manufacturing (NAICS 31-33) be if the national average growth rate had been .12 from 1998 to 2006?
What would the % proportional shift have been at this national average growth rate (as depicted in Table 6.6)?NOTE
NOTE: This has to be calculated, since the value in Table 6.6 reflects a national average growth rate of 8.0%.
Question 2 (2 parts, 1 point each):
In West Central Georgia, what would the % differential shift in Manufacturing (NAICS 31-33) be if base year employment had been 25,000?
What does this shift level tell you about the condition of the regional manufacturing sector?
Question 3 (2 parts, 1 point each):
In West Central Georgia, what would the Location Quotient (LQ) for Manufacturing (NAICS 31-33) be if its 2006 employment had been 35,000 instead of 29,535?Note
What does this number tell you?
Note: Remember: Total employment will also change.
3322
Question 4 (4 points):
Can an economic sector have an LQ greater than 1.0 if its proportion of employment in the local economy is lower than the average proportion of employment of all of its sectors? Why or why not?
Question 5 (2 points):
In your own words drawing from the text and the lecture, why is commute time an important local economic indicator?
Question 6 (1 point):
In your own words drawing from the text and the lecture, what is meant by “workforce housing” and why is it an important consideration in the economic profile of a community?
Question 7 (3 points):
In your own words drawing from the text and the lecture, identify three types of information you would include in an economic profile to characterize the “higher education resources” that would be of interest to a large business that is considering locating in a community. Include a brief statement of why you think each would be important.
Question 8 (1 point):
Use the American Factfinder2 website to find the number of Wholesale sector (NAICS 42) employees there were in the economic place of Eugene, Oregon in 2007:
Question 9 (1 point):
Use the SOCDS2 website to find the 2000 unemployment rate of Junction City, Oregon (a suburb of Eugene):
_______________
2 See the posted document, “American Factfinder and SOCDS procedural protocols” for instructions about navigating the American Factfinder and SOCDS websites. The two Project 2 demo videos may also be helpful.
PROJECT 2 ADDENDUM
Proportional shift:
It is important to keep the terminology straight: change in a sector of an economy is referred to as “industry growth rate” whereas change in an entire economy is referred to as “average growth rate.”
The numbers in the equation need to be their actual values as numbers, i.e., if they are a percentage, they need to be entered as a proportion, or .01 for 1.0%.
Since the proportional shift measures change over time, it starts with the beginning, or base year, employment value.
The formula explained on page 175 of the text will calculate the actual number of jobs. However, to make it possible to compare sectors, this value should be reported as a percentage (as it was done in Table 6.6).
When interpreting proportional shift, keep in mind that it calculates the growth that is occurring in that sector independent of general growth in the economy. In so doing, it also automatically accounts for the fact that an employment decrease in a sector also had to offset any growth in the national economy. When expressed as a percentage, this is the total percentage decline of a sector that is imbedded in a national economy. So, a sector that declined by 5% in a national economy that grew by 5% is deemed to have had an effective decline of 10% since it didn't benefit from the 5% national growth that occurred.
Differential shift:
As with proportional shift, the terminology needs to be kept straight: change in a sector of an economy is referred to as “industry growth rate” whereas change in an entire economy is referred to as “average growth rate.”
Also as with proportional shift, the numbers in the equation need to be their actual values as numbers, i.e., if they are a percentage, they need to be entered as a proportion, or .01 for 1.0%.
As with proportional shift, the formula explained on page 175 of the text will calculate the actual number of jobs. However, to make it possible to compare sectors, this value should be converted to percentage (as shown in Table 6.6).
When interpreting differential shift, keep in mind that it calculates the growth that is occurring in the local sector independent of the growth that is occurring in that sector nationally. In so doing, it also automatically accounts for the fact that a local employment increase also encompasses employment growth that occurred at a national level. So, a local increase of 10% in a sector that increased by 5% nationally had an effective local increase of 5% since it is assumed to have benefitted from the 5% growth in national employment growth.
Location quotient:
Here are two key conceptual components for LQ:
It is a comparison of a local employment proportion with the employment proportion of a larger region, such as the state or nation.
The proportion is always how much of total employment is made up of a particular sector (in this case, the manufacturing sector, or NAICS 31-33).
Remember, if employment in a sector of a local economy is changed, total employment will also change.
1For a review of basic Excel commands, see the “Excel Basic Commands Review” attachment to this module. The informational website, “Excel Tutorials,” may also be useful.
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