Accounting for Municipal Economic Development

Abstract

Local economic development analysis typically emphasizes the metropolitan area, rather than municipalities, because it is the basic economic space, but it is not a strong unit of local government. Brief reference is made here to parallel research published elsewhere on a coordinated metropolitan development model and then focus shifts to a municipal model that evaluates the position, prospects, and potential of a given piece of space within the local economy. Three basic municipal economic roles—on occasion alternatives, complementary, or sequential—are itentified: (1) a site for export production contrasting goods and services), (2) a center for metropolitan trade and services (for business or households), and (3) as a preferred place of residence (for high or low income households). The central city of Cleveland is compared to its metropoltan area, using readily available Census data for the 32 largest metropolitan areas and their central cities. Other Census data on the age distribution of housing and residential relocation between central cities and suburbs (disaggregated by occupation, education, and income) are examined as additional examples of the kind of data that can and will be integrated into this three-path muncipal model. The ultimate objective is to link that metropolitan (economic) model and this municipal (policy) model into a broad decision-making framework for local economic development policy and planning.