Economic Development Research

Research
Students and faculty at DCRP engage in a variety of research projects. Such projects may be
funded by foundation grants, state or local government agencies, or university research funds.
These projects are often client-oriented, giving students a chance to apply what they learn in
class to real-world situations. Following are some examples of recent research projects.

Education Impacts of New Real Estate Developments
Professor Emil Malizia recently created an application that planners can use in performing
impact analyses that helps them to estimate the size of households and number of school-age
children in new real estate developments. Malizia published articles explaining this work in
Carolina Planning and Planning magazine. He is currently evaluating and updating the
methodology of the Orange County school impact fee and fee schedule and estimating
accurate and equitable impact fees for the county. Ph.D. graduate Robin Howarth and several
masters students assisted with this project. (1997 – articles, 1999 – Orange County)

Dynamics of High Growth Firms
For the past 20 years, state and local governments have promoted small business assistance
programs with the belief that most job increases are generated by small businesses. Professor
Malizia and DCRP Ph.D alumnus Rebecca Winders are assessing the ability of such programs
to facilitate local job growth. In a study funded by the Tennessee Valley Authority Rural Studies
program, Malizia and Winders are studying the employment dynamics of high growth firms and
the location factors that influence these firms. They are also determining the sources of
development finance used by young high-growth firms. Masters students Steve West and
Jessica Leveen are assisting with this project. (1999)

Development Banking in Low-Wealth and Minority Communities
Community development credit unions (CDCUs) finance community-based entrepreneurs and
support community development in low wealth communities. In a study funded by the Ford
Foundation, Professor Malizia found that long-standing attention to member service combined
with more recent concern for community economic development makes CDCUs potent actors
in low wealth areas. The study also revealed that CDCUs have taken prudent risks to fulfill
development banking functions while becoming important institutions that help empower low
wealth communities. Malizia proposed a number of recommendations to increase the
effectiveness of CDCUs. Three masters students assisted with the project. (1997)

Design and Testing of a State and Substate Industry Employment Projections Model
In a project funded by the Employment and Training Administration of the U.S. Department of
Labor, Professor Goldstein developed a set of econometric models that can be used to forecast
detailed 3-digit SIC industry employment at the state and substate levels. The models, in turn,
can be used to develop estimates of future job openings by occupation for planning job training
and vocational education programs.

Economic Impacts of Proposed NCSU Engineering Research Center
Professor Goldstein determined the potential economic impacts on the state economy of the North
Carolina State University’s prospective Engineering Research Center. The purpose of the study
was to estimate the direct and indirect economic impacts of a prospective research center on
economic activity in the state. In addition to estimates of output, earnings, and employment
impacts using an input-output model, Goldstein estimated the likely impacts on labor force
migration, business startup and spin-off activity, and incidence of technological innovation.
The projected was funded by NCSU.

The Effect of Migration on Future Job Openings by Occupation at the State Level
Every state estimates future job openings by occupation at the state and substate levels for the
purposes of career counseling and the planning of job training and education programs and capital
facilities. While these estimates take into account projections of job openings due to economic
growth, occupational mobility, death, retirement, and exits from the labor force, they do not take
into account in-migration or out-migration because of lack of data. In this project, Professor
Goldstein developed a set of models to estimate missing data in order to provide valid estimates
of job openings due to interstate labor force migration by occupation. The U.S. Department of
Labor, Employment and Training Administration funded the study.

Assessment of North Carolina’s Industry and Higher Education Technology Strengths
and Opportunities
Professors Feser, Goldstein, and Luger identified the relative strengths of the state’s institutions of
higher education by academic discipline and by technology area, and identified the technology-based
industry sectors that have comparative and strategic advantages in North Carolina, using a number of
indicators. The outcomes of each of these analyses were then merged to see to what degree the
academic strengths and the industry strengths matched, in order to focus state and private sector
efforts to increase North Carolina’s technological capacity. The North Carolina Board of Science
and Technology and North Carolina Alliance for Competitive Technologies funded the study.
Masters student Ani Nemickas provided research assistance on this project. (1998)

Effects of Government Regulations on Housing Prices in New Jersey and North Carolina
Professor Mike Luger completed a report for Housing New Jersey and the New Jersey Department of
Community Affairs that established the costs of regulations on new housing construction so that the
benefits of these regulations, which accrue both to the home buyer and residents of the larger
neighborhood, could be compared to the costs incurred by housing consumers. The report was co-
written with Art Wells, DCRP Ph.D student Spencer Cowan, and DCRP Ph.D alumnus Ken Temkin. (1998)

Regulation, Tax Policy, and Urban Development
Luger is looking at the history of how regulations and tax policy have affected development in the
Raleigh- Durham metropolitan area. The study is comparing growth patterns and regulations between
older northern and midwestern cities and faster growing southern and western cities. The project team
are attempting to establish relationships between quality of life and development/tax policies in these
areas. (1999)

Worker Displacement and Job Skills
While North Carolina leads the United States in business start-ups and relocations, it is also one
of the leading states for plant closings. The North Carolina Department of Commerce commissioned
a study by Professor Luger to analyze the displaced worker trends in the state and recommend policies
to address identified problems. Using Job Training Partnership Act (JTPA) interventions data, Luger is
determining whether NC workers have the skills and are in the right location to take advantage of new
job opportunities when they are displaced by plant closings in traditional manufacturing facilities. (1999)

Employer Skill Needs and Job Training Requirements
Professor Harvey Goldstein is working with the Durham Regional Economic Development Commission,
Durham Technical Community College, and West End Community Center to match employer skill
needs and neighborhood training needs with job training opportunities in South West Central Durham.
The goals of the project include providing job training for area residents and determining what training
is appropriate based on residents’ skills and interests, employer needs, and available training
opportunities. As part of the project, Professor Goldstein and a team of DCRP students will survey
200 area businesses to identify their current and anticipated needs for labor skills. The project team
will also review, analyze, and summarize existing local and regional employment projections. The
project is part of the Community Outreach Partnership Center (COPC), with a grant from the U.S.
Department of Housing and Urban Development. COPC is working with the community of South
West Central Durham on issues of housing, economic development, youth empowerment, crime
prevention, and job creation. (1999)

Wealth Creation in Low Income Communities
In another COPC project, Professor Emil Malizia is working on building wealth in the community in
collaboration with Self-Help Credit Union, the Durham Community Land Trust, Consumer Credit
Counseling, Good Work, and the Duke Office of Community Affairs. The project seeks to examine
and address some of the root causes of low wealth among families in Southwest Central Durham.
After analyzing residents’ access to and use of credit, Malizia and the project partners will develop
strategies to improve families’ access to credit and capital, with the goal of increasing wealth.
Specific strategies may include creation of individual development accounts to provide targeted
savings for low wealth households and intensive consumer credit counseling. (1999)

Out-migration, Population Decline, and Regional Economic Distress
Unemployment and per capita income are the primary indicators used by the federal government
and many regional agencies to identify communities suffering from significant economic distress.
Professor Edward Feser and Ph.D student Stuart Sweeney are evaluating alternative measures of
distress that take into account population decline associated with severe out-migration. The project
includes an analysis of migration trends across U.S. labor market areas as well as case studies
of economically distressed communities in Wyoming, Montana, North Dakota, Texas, Illinois,
and Indiana. Ph.D student Karen Becker assisted with the project. The U.S. Economic
Development Administration funded the study. (1998)

Identification of Industry Clusters in North Carolina Manufacturing
In a study commissioned by the North Carolina Alliance for Competitive Technologies, Professor
Feser and Dr. Edward Bergman (formerly on the DCRP faculty and now at the Vienna University of
Economics and Business) conducted a comprehensive analysis of interindustry linkages in North
Carolina. The study was designed to provide state policymakers with a guide for better targeting
technology adoption assistance and programs. The initial project was eventually expanded to
include analyses of each of the state’s seven Economic Development Partnership regions.
Four DCRP Ph.D students and five MRP students contributed to the project. (1996-7)

Impact of Tryon Palace on New Bern and its Region
Tryon Palace, located in New Bern, NC, is one of the few colonial historic sites in the state.
In a study commissioned by the North Carolina Division of Cultural Resources, Professor Feser
directed a team of MRP students in an analysis of impact of the Palace on the New Bern economy.
The study included an input-output impact analysis as well as an examination of the influence of the
Palace on historic preservation efforts in New Bern. The project was conducted as an economic
development workshop (PLAN 223). (1998)


	ECONOMIC DEVELOPMENT @ DCRP: ED Home Research People Curriculum Careers Economic Development Semester in Europe Housing, Real Estate, and Community Development FACULTY: Harvey Goldstein Emil Malizia Meenu Tewari Affiliated Faculty VIENNA UNIVERSITY OF ECONOMICS AND BUSINESS Edward Bergman Gunther Meir Herwig Palme Uwe Schubert Walter B. Stoehr Franz Todtling 7.29.07		Research Students and faculty at DCRP engage in a variety of research projects. Such projects may be funded by foundation grants, state or local government agencies, or university research funds. These projects are often client-oriented, giving students a chance to apply what they learn in class to real-world situations. Following are some examples of recent research projects. Education Impacts of New Real Estate Developments Professor Emil Malizia recently created an application that planners can use in performing impact analyses that helps them to estimate the size of households and number of school-age children in new real estate developments. Malizia published articles explaining this work in Carolina Planning and Planning magazine. He is currently evaluating and updating the methodology of the Orange County school impact fee and fee schedule and estimating accurate and equitable impact fees for the county. Ph.D. graduate Robin Howarth and several masters students assisted with this project. (1997 – articles, 1999 – Orange County) Dynamics of High Growth Firms For the past 20 years, state and local governments have promoted small business assistance programs with the belief that most job increases are generated by small businesses. Professor Malizia and DCRP Ph.D alumnus Rebecca Winders are assessing the ability of such programs to facilitate local job growth. In a study funded by the Tennessee Valley Authority Rural Studies program, Malizia and Winders are studying the employment dynamics of high growth firms and the location factors that influence these firms. They are also determining the sources of development finance used by young high-growth firms. Masters students Steve West and Jessica Leveen are assisting with this project. (1999) Development Banking in Low-Wealth and Minority Communities Community development credit unions (CDCUs) finance community-based entrepreneurs and support community development in low wealth communities. In a study funded by the Ford Foundation, Professor Malizia found that long-standing attention to member service combined with more recent concern for community economic development makes CDCUs potent actors in low wealth areas. The study also revealed that CDCUs have taken prudent risks to fulfill development banking functions while becoming important institutions that help empower low wealth communities. Malizia proposed a number of recommendations to increase the effectiveness of CDCUs. Three masters students assisted with the project. (1997) Design and Testing of a State and Substate Industry Employment Projections Model In a project funded by the Employment and Training Administration of the U.S. Department of Labor, Professor Goldstein developed a set of econometric models that can be used to forecast detailed 3-digit SIC industry employment at the state and substate levels. The models, in turn, can be used to develop estimates of future job openings by occupation for planning job training and vocational education programs. Economic Impacts of Proposed NCSU Engineering Research Center Professor Goldstein determined the potential economic impacts on the state economy of the North Carolina State University’s prospective Engineering Research Center. The purpose of the study was to estimate the direct and indirect economic impacts of a prospective research center on economic activity in the state. In addition to estimates of output, earnings, and employment impacts using an input-output model, Goldstein estimated the likely impacts on labor force migration, business startup and spin-off activity, and incidence of technological innovation. The projected was funded by NCSU. The Effect of Migration on Future Job Openings by Occupation at the State Level Every state estimates future job openings by occupation at the state and substate levels for the purposes of career counseling and the planning of job training and education programs and capital facilities. While these estimates take into account projections of job openings due to economic growth, occupational mobility, death, retirement, and exits from the labor force, they do not take into account in-migration or out-migration because of lack of data. In this project, Professor Goldstein developed a set of models to estimate missing data in order to provide valid estimates of job openings due to interstate labor force migration by occupation. The U.S. Department of Labor, Employment and Training Administration funded the study. Assessment of North Carolina’s Industry and Higher Education Technology Strengths and Opportunities Professors Feser, Goldstein, and Luger identified the relative strengths of the state’s institutions of higher education by academic discipline and by technology area, and identified the technology-based industry sectors that have comparative and strategic advantages in North Carolina, using a number of indicators. The outcomes of each of these analyses were then merged to see to what degree the academic strengths and the industry strengths matched, in order to focus state and private sector efforts to increase North Carolina’s technological capacity. The North Carolina Board of Science and Technology and North Carolina Alliance for Competitive Technologies funded the study. Masters student Ani Nemickas provided research assistance on this project. (1998) Effects of Government Regulations on Housing Prices in New Jersey and North Carolina Professor Mike Luger completed a report for Housing New Jersey and the New Jersey Department of Community Affairs that established the costs of regulations on new housing construction so that the benefits of these regulations, which accrue both to the home buyer and residents of the larger neighborhood, could be compared to the costs incurred by housing consumers. The report was co- written with Art Wells, DCRP Ph.D student Spencer Cowan, and DCRP Ph.D alumnus Ken Temkin. (1998) Regulation, Tax Policy, and Urban Development Luger is looking at the history of how regulations and tax policy have affected development in the Raleigh- Durham metropolitan area. The study is comparing growth patterns and regulations between older northern and midwestern cities and faster growing southern and western cities. The project team are attempting to establish relationships between quality of life and development/tax policies in these areas. (1999) Worker Displacement and Job Skills While North Carolina leads the United States in business start-ups and relocations, it is also one of the leading states for plant closings. The North Carolina Department of Commerce commissioned a study by Professor Luger to analyze the displaced worker trends in the state and recommend policies to address identified problems. Using Job Training Partnership Act (JTPA) interventions data, Luger is determining whether NC workers have the skills and are in the right location to take advantage of new job opportunities when they are displaced by plant closings in traditional manufacturing facilities. (1999) Employer Skill Needs and Job Training Requirements Professor Harvey Goldstein is working with the Durham Regional Economic Development Commission, Durham Technical Community College, and West End Community Center to match employer skill needs and neighborhood training needs with job training opportunities in South West Central Durham. The goals of the project include providing job training for area residents and determining what training is appropriate based on residents’ skills and interests, employer needs, and available training opportunities. As part of the project, Professor Goldstein and a team of DCRP students will survey 200 area businesses to identify their current and anticipated needs for labor skills. The project team will also review, analyze, and summarize existing local and regional employment projections. The project is part of the Community Outreach Partnership Center (COPC), with a grant from the U.S. Department of Housing and Urban Development. COPC is working with the community of South West Central Durham on issues of housing, economic development, youth empowerment, crime prevention, and job creation. (1999) Wealth Creation in Low Income Communities In another COPC project, Professor Emil Malizia is working on building wealth in the community in collaboration with Self-Help Credit Union, the Durham Community Land Trust, Consumer Credit Counseling, Good Work, and the Duke Office of Community Affairs. The project seeks to examine and address some of the root causes of low wealth among families in Southwest Central Durham. After analyzing residents’ access to and use of credit, Malizia and the project partners will develop strategies to improve families’ access to credit and capital, with the goal of increasing wealth. Specific strategies may include creation of individual development accounts to provide targeted savings for low wealth households and intensive consumer credit counseling. (1999) Out-migration, Population Decline, and Regional Economic Distress Unemployment and per capita income are the primary indicators used by the federal government and many regional agencies to identify communities suffering from significant economic distress. Professor Edward Feser and Ph.D student Stuart Sweeney are evaluating alternative measures of distress that take into account population decline associated with severe out-migration. The project includes an analysis of migration trends across U.S. labor market areas as well as case studies of economically distressed communities in Wyoming, Montana, North Dakota, Texas, Illinois, and Indiana. Ph.D student Karen Becker assisted with the project. The U.S. Economic Development Administration funded the study. (1998) Identification of Industry Clusters in North Carolina Manufacturing In a study commissioned by the North Carolina Alliance for Competitive Technologies, Professor Feser and Dr. Edward Bergman (formerly on the DCRP faculty and now at the Vienna University of Economics and Business) conducted a comprehensive analysis of interindustry linkages in North Carolina. The study was designed to provide state policymakers with a guide for better targeting technology adoption assistance and programs. The initial project was eventually expanded to include analyses of each of the state’s seven Economic Development Partnership regions. Four DCRP Ph.D students and five MRP students contributed to the project. (1996-7) Impact of Tryon Palace on New Bern and its Region Tryon Palace, located in New Bern, NC, is one of the few colonial historic sites in the state. In a study commissioned by the North Carolina Division of Cultural Resources, Professor Feser directed a team of MRP students in an analysis of impact of the Palace on the New Bern economy. The study included an input-output impact analysis as well as an examination of the influence of the Palace on historic preservation efforts in New Bern. The project was conducted as an economic development workshop (PLAN 223). (1998)