The Role of Microenterprises in Economic Growth: A Panel Study of Wisconsin Counties 1977 to 1997

In this study I examine the role of microenterprises (firms with between one and four employees) in Wisconsin economic growth. Using a panel of Wisconsin counties from 1977 to 1997 I estimate an expanded Carlino-Mills type model of growth. Results suggest that nearly 50 percent of all businesses in Wisconsin are microenterprises and this share is relatively stable over time. Results also indicate that a higher percentage of businesses classified as microenterprises tend to be associated with counties with lower population levels, slower population growth, but higher levels of employment and income growth. Results also vary by type of industry. These results suggest that care must be taken when promoting microenterprises as a major engine of economic growth: results vary by measure of economic growth as well as type of industry.

Wisconsin and the Agricultural Economy

In this applied research project I attempt to explore general trends within the Wisconsin agricultural sectors as they relate to the larger Wisconsin economy. Using two metrics of economic activity, income and jobs, I explore recent historical trends. In essence, the analysis finds that production agriculture went through a significant downward phase that has appeared to stabilize over the most recent period. Income from agriculture has become increasingly unstable adding significant uncertainity to the industry. Agricultural processing, however, remains a strong source of income and employment growth. While production agriculture appears to have stabilized and food processing has grown, the rest of the state's economy has grown at a much greater clip, meaning that agriculture as a percent of the Wisconsin economy has declined over time. In addition to the historical analysis a detailed economic impact assessment was undertaken using the most recent data available; 2000. I examine on-farm dairy production and processing, farm production broadly defined and agricultural processing broadly defined. In addition, I examine the role of horticulture, a small but growing part of Wisconsin's agricultural economy. In general, farm production is a modest contributor to the the Wisconsin economy, but food processing is a more significant part of the economy.

A Trade Area Analysis of Wisconsin Counties: Updated for 2010

For updated Trade Area Analysis (TAA) of Wisconsin counties we use the sales tax data as reported by the Wisconsin Department of Revenue for 2010. Only those counties that have elected to collect the optional county sales tax are included in the analysis. Because sales tax data are used one must keep in mind that the analysis focuses only on taxable sales and may not reflect the total level of activity in the county. Using Pull Factors and measures of Surplus and Leakage the relative strengths, and weaknesses, of local retail and service markets are identified. Changes in Pull Factors from 2005 to 2010 are provided to gain insights into growing and declining sectors. Finally, an update of simple Wisconsin retail market thresholds estimates (i.e., number of customers required to support an establishment) is also provided.

The Economic Impact of Milk Production on the Wisconsin Economy

The intent of this study is to introduce and report a new method for assessing the economic impact of milk production on the Wisconsin economy. Previous agricultural impact studies have used methods with inherent lags in the timing of the relevant data. In addition, previous studies treated dairy farms as a single entity and did not separate out milk production. Dairy farms are multi-product firms producing milk, cull cows for meat as well as crops. This study focuses on just milk production. By using current annual data from the Wisconsin Agricultural Statistics a more timely analysis is provided. In addition an annual moving average of production levels is used to minimize the role of yearly fluctuate.

Trade Area Analysis of Select Wisconsin Counties: Update for 1999

The development of a community's retail market should be an integral part of the community development process. Some, however, might argue that the retail sector develops naturally following other types of economic development such as growth in the manufacturing sector or an influx of tourists. To a degree this is true. Several factors, however, may prevent this process from being completely efficient.

An Updated Trade Area Analysis of Wisconsin Counties for 2006

The intent of this functional research project is to apply the tools of Trade Area Analysis (TAA) to retail and service sales data for Wisconsin Counties. For this analysis we use the sales tax data as reported by the Wisconsin Department of Revenue for 2006, the most current year the data are available. Only those counties that have elected to collect the optional county sales tax are included in the analysis. Through Pull Factors and measures of Surplus and Leakage the relative strengths, and weaknesses, of local retail and service markets are identified.

Growth and Fiscal Health in Wisconsin Cities

The intent of the applied research reported in this paper is to examine the relationship between growth and the fiscal health of a subset of local governments (incorporated cities) over the last decade. While any number of researchers has raised this question, the literature has tended to focus on larger urban areas during economic downturns. Ladd's (1994) most recent research looking at the fiscal effects of growth has become perhaps the most influential in this line of work. Ladd's research, however, is limited in that she focused on per capita spending, a variable of interest in itself and because it can be conceptually linked to service quality and tax burden. While the data used in her analysis do not reflect a period of economic downturn, the data are for large counties from across the U.S. The analysis presented in this paper is intended to explore of the impact of growth on the fiscal health of smaller local governments. Annual data for Wisconsin cities from 1991 to 1998 are analyzed in this study. Six measures are used to capture different aspects of fiscal health. Changes in these measures in relation to changes in population, property values, and income are evaluated through a series of tests of subsample equivalence and regression analysis.

Crime and the Quality of Life in Wisconsin Counties

The impact of crime on the local quality of life of a region is examined. Using the methods suggested by Roback (1982) hedonic pricing analysis is used to examine the effects of eight categories of crime on property values and wages. The hedonic results are then used to calculate the implicit prices of the various types of crime. Prices are computed for both urban and rural areas reflecting differences in lifestyle and the corresponding impact of crime. As expected, crime has a measurable negative cost and lowers overall quality of life in a region and the level of impact varies significantly by type of crime.

Local Government Taxing, Spending and Economic Growth: New Evidence for Wisconsin

Wisconsin is generally viewed as a high tax state. Depending on how one measures tax burdens, Wisconsin's rankings range from either the top five, or right in the middle of the national average. While these rankings have always been a source of discussion in Wisconsin, the state's current budget deficit, and the proposed solutions, has renewed the public debate about Wisconsin's fiscal policies with a vengeance. Accusations of duplication of services, higher costs inherent to the small scale of operation and a general tendency to be "big spenders" have created a firestorm of controversy. Further, a range of business support organizations has renewed yet again the call for tax reductions in the name of economic growth. In this applied research study we again ask the fundamental question "are Wisconsin local taxes too high" but we address the research question from a slightly different direction. Rather than looking at local property values and corresponding tax generating abilities, we measure the influence of local spending and taxation decisions on local economic growth. If local spending and taxation levels are indeed too high, we should see a dampening affect on local economic growth rates.