Publications

2002
Cost-Benefit Analysis Using Economic Surpluses: A Case Study of a Televised Event
A., Fleischer, and Felsenstein D. 2002. “Cost-Benefit Analysis Using Economic Surpluses: A Case Study of a Televised Event”. Journal of Cultural Economics 26 (2):139-156. Publisher's VersionAbstract

Economic impact studies based on short-run spending injections and multipliers lack conceptual ties to measures of economic surplus, fail to capture intangible benefits and generally fail to measure costs. In this case study of the Eurovision Song Contest (ESC) held in Israel in 1999, national benefits from the government-financed televising of the ESC are measured as producer surplus (approximated by private sector incremental profits), consumer surplus (measured as the incremental willingness to pay for an event staged at home) and government surplus (linked to national implicit benefits in the form of promotional advertising cost savings). The opportunity costs of diverting resources to this particular televised event are expressly included as an offset to these gross surplus benefits. Despite the conservative approach, the results show moderate social justification for public support of this high profile televised spectacle and suggest that a cost-benefit approach to cultural events can have wider applications.

Do High Technology Agglomerations Encourage Urban Sprawl?
D., Felsenstein. 2002. “Do High Technology Agglomerations Encourage Urban Sprawl?”. Annals of Regional Science 36 (4):663-682. Publisher's VersionAbstract

This paper looks at the impact of high technology employment concentrations on urban sprawl. A methodology for translating spatial employment patterns, into place of residence patterns, is presented. On this basis, the consumption of land at the urban fringe due to both residential and non-residential uses, is estimated. The method is tested empirically using data relating to the two main outer suburban agglomerations of high technology activity in the Chicago metropolitan area. Two counter-factual situations are simulated. The first relates to a spatial counter-factual whereby the high tech concentrations develop in the city of Chicago or within the inner suburbs. The second presents an industry counter-factual that estimates the land consumption impacts arising from the development of an alternative industrial concentration in the same location. The results of the actual and hypothetical cases are compared. They point to a considerable saving in acreage in all alternative scenarios. Some policy implications are highlighted.

Small-Scale Entrepreneurship and Access to Capital in Peripheral Locations: An Empirical Analysis
D., Felsenstein, and Fleischer A. 2002. “Small-Scale Entrepreneurship and Access to Capital in Peripheral Locations: An Empirical Analysis”. Growth and Change 33 (2):196-215. Publisher's VersionAbstract

This paper presents an analysis of a public assistance program for small–scale entrepreneurship in peripheral areas. Public assistance compensates for market inefficiencies where the decision rules of financial institutions discriminate against otherwise viable small firms in capital markets. Lending institutions perceive high risk in providing debt capital when little information is present. Using empirical data from Israel, the determinants of this risk are estimated and the role of location in creating this information asymmetry is stressed. These results empirically establish that (1) location matters in determining the risk profile of the firm, (2) locationally targeted programs can reduce the information asymmetries that make peripheral firms unattractive to lenders, and (3) these programs can also generate positive welfare effects. Finally, there is speculation on the potential role of ICT (information and communications technology) in increasing the visibility of small firms in remote locations and creating a more symmetrical flow of information.

2001
Analyzing Local Growth: Moving Beyond Income and Employment Counts
D., Felsenstein. 2001.“Analyzing Local Growth: Moving Beyond Income and Employment Counts”. Pp. 29-42 in Felsenstein D. and Taylor M. (2001) (eds), Promoting Local Growth: Process, Practices and Policy. Aldershot, UK: Ashgate. Publisher's Version
Gambling on the Border: Casinos, Tourism Development and the Prisoner’s Dilemma
D., Felsenstein, and Freeman D. 2001.“Gambling on the Border: Casinos, Tourism Development and the Prisoner’s Dilemma”. Pp. 95-113 in Krakover S. and Gradus Y. (eds.), Tourism in Frontier Areas. KY: Lexington. Publisher's Version
A ‘Job Chains’ Model for Assessing Employment Creation in Local Labor Markets
J., Persky, and Felsenstein D. 2001.“A ‘Job Chains’ Model for Assessing Employment Creation in Local Labor Markets”. Pp. 173-190 in Felsenstein D., McQuaid R., McCann P. and Shefer D. (2001) (eds), Public Investment and Regional Economic Development. Cheltenham, UK: Edward Elgar. Publisher's Version
National and Regional Economic Impacts of the Silicon Valley
D., Felsenstein. 2001.“National and Regional Economic Impacts of the Silicon Valley”. in idgoli H. (ed.) Encyclopedia of Information Systems. San Diego CA: Academic Press. Publisher's Version
Promoting Local Growth: Process, Practice and Policy
D., Felsenstein, and Taylor M. 2001.Promoting Local Growth: Process, Practice and Policy. Aldershot, UK: Ashgate. Publisher's VersionAbstract

As globalisation increases, much of the economic growth is found at local and regional levels. This monograph features a collection of papers by an international selection of writers which examine the factors promoting this sub-national economic growth. The collection focuses on the new industries that drive this growth, how policy is implemented to facilitate it, and the new forms of governance emerging as a means of regulating this economic activity. Issues considered include: the role of these new industries; income, employment, job creation and training; relationships between global and local forces; and the importance of sub-national governance

Public Investment and Regional Economic Development
D., Felsenstein, McQuaid R., McCann P., and Shefer D. 2001.Public Investment and Regional Economic Development. Cheltenham, UK: Edward Elgar. Publisher's VersionAbstract

The relationship between public investment and regional econimic development is of perennial interest. It is particularly topical now as issues of infrastructre and innovation are high on policy agendas in may countries. Public investment is often viewed as possible method for 'jump-starting' lagging regional economics and also as a requirement for the continued development of more prosperous regions. Public investment and Regional Economic Development provides systematic analysis of the complex relationship betweem public investment and regional economic development.
The authors offer new insights into the key issues of regional growth, and present a broad variety of perspectives ranging from transport and housing infrastructure through to human capital and innovation.

With contributions from leading regional scientists, and each themed section of the book prefaced with an editorial introduction to ensure coherence, this illumination book is sure to offer policymakers new research insights in key issues of regional growth. Academics and researchers of urban and regional planning, geography and economic development will also find the book of great interest.

Estimating the Impacts of Cross-Border Competition: The Case of Gambling in Israel and Egypt
D., Felsenstein, and Freeman D. 2001. “Estimating the Impacts of Cross-Border Competition: The Case of Gambling in Israel and Egypt”. Tourism Management 22 (5):511-521. Publisher's VersionAbstract

This paper presents an empirical estimation of crossborder competition in the casino gambling sector. Informed by the ‘prisoners dilemma’ hypothesis, the paper proceeds to examine various competitive situations likely to arise with the introduction of casino gambling at two tourist locations on opposite sides of the Israeli–Egyptian border. Numerical estimations of the outcomes of three different situations are presented and the impact analysis method is described. The results point to small positive impacts and the volatility of this form of tourism development. The implications of the results point to the limited role of casino gambling in tourism development and the weighty monetary impact of social costs.

2000
D., Felsenstein. 2000.“University-Related Science Parks - 'Seedbeds' or 'Enclaves' of Innovation?”. in Westhead P. and Wright M (eds.), Advances in Entrepreneurship. UK: Edward Elgar. Publisher's Version
The Economic Impacts of a Regional College: The Case of Maale Efraim
D., Freeman, Felsenstein D., and Fleischer A. 2000.“The Economic Impacts of a Regional College: The Case of Maale Efraim”. Pp. 307-325 in Eshel Y. (ed.) Studies of Judea and Samaria, vol. 9. Ariel, Israel: Research Authority, College of Judea and Samaria (Hebrew).
Capital Assistance for Small Firms: Some Implications for Regional Economic Welfare
D., Felsenstein, and Fleischer A. 2000. “Capital Assistance for Small Firms: Some Implications for Regional Economic Welfare”. Geographical Analysis 32 (1):36-49. Publisher's VersionAbstract

This paper analyzes the role of finance capital in regional economic development. A cost-benefit approach is invoked in order to estimate the welfare impacts of a regional loan and guarantee program for small firms in Israel. Program-created employment is treated as a benefit and an employment account that separates net from gross employment, is presented. An estimate of net wage benefits is then derived. This involves adjusting wages across different earnings classes in order to account for the variation in opportunity costs of labor at different levels. The estimation of costs includes the opportunity costs of capital, administration, default, and tax-raising costs. Results point to substantial regional welfare effects. We stress the need to account for changing regional economic structure in this kind of evaluation framework.

Support for Rural Tourism: Does it Make a Difference?
A., Fleischer, and Felsenstein D. 2000. “Support for Rural Tourism: Does it Make a Difference?”. Annals of Tourism Research 27 (4):1007-1024. Publisher's VersionAbstract

The promotion of small-scale tourism is intuitively perceived as a suitable form of economic development for rural areas. However, its impact is controversial and not always obvious. To examine these issues, this paper presents an empirical analysis of public support to small-scale tourism enterprises in rural areas in Israel. Using the tools of cost-effectiveness and cost–benefit analysis, public assistance for this type of activity is shown to be able to generate considerable returns. Methodological issues in this kind of analysis are also discussed and the policy implications arising with respect to the suitability of different forms of tourism activity in rural areas are presented.

1999
Expenditure and Knowledge-Based Regional Impacts Associated with a University; Some Empirical Evidence
D., Felsenstein. 1999.“Expenditure and Knowledge-Based Regional Impacts Associated with a University; Some Empirical Evidence”. Pp. 73-94 in Rietveld P. and Shefer D. (eds), Regional Development in an Age of Structural Economic Change. Aldershot UK: Ashgate. Publisher's Version
Casino Gambling as Local Growth Generation: Playing the Economic Development Game in Reverse?
D., Felsenstein, Littlepage L., and Klacik D. 1999. “Casino Gambling as Local Growth Generation: Playing the Economic Development Game in Reverse?”. Journal of Urban Affairs 21 (4):409-422. Publisher's VersionAbstract

Over the past decade, casino gambling has become increasingly popular as a local economic development strategy. This article makes the case that using gambling as an economic development tool presupposes a rather different economicdevelopment “game” from that traditionally played. While the introduction of gambling into a community might induce the same short-run effects (local jobs and incomes) as the introduction of any other economic development project, the economic development processes at work are very different. This article compares the way the economic development game is traditionally played to the way it is played “in reverse” when casino gambling is used as the tool. The main differences are in the areas of community-corporate relations, fiscal versus economic impacts, market development, the role of government, and the provision of public goods. In light of these differences, distinctions in strategic behavior are drawn. Empirical evidence from Indiana is used to analyze the economic development game as played in the traditional setting of corporate recruitment and in the context of casino gambling. The conclusions point to some of the factors that constrain a community from fully maximizing its negotiating advantage as a resource holder.

Measuring the Employment Impacts of a Regional Small Business Assistance Program
D., Felsenstein, Fleischer A., and Sidi A. 1999. “Measuring the Employment Impacts of a Regional Small Business Assistance Program”. Public Administration Quarterly 23 (3):313-340. Publisher's VersionAbstract

This article presents a relatively simple and transparent accounting-type approach to measuring employment impacts that can be applied by practitioners and policy analysts. This method uses program-generated employment impacts as a starting point and then adjusts these figures to account for the issues outlined in the text. These adjustments are performed using a variety of readily available indices and coefficients that are generated by some of the stock tools of regional analysis. The workings of this approach are then illustrated using data on a regional small business assistance program operating in Israel. The results emphasize the discrepancy between program-declared employment outcomes (gross employment impacts) and those "distilled" from the data on the basis of the procedure outlined below (net employment impacts). The conclusions relate to the need for methods and tools that will give analysts and practitioners the capability for performing rigorous yet straightforward evaluations of public policy.

When is a Cost Really a Benefit? Local Welfare Effects and Employment Creation in the Evaluation of Economic Development Programs
D., Felsenstein, and Persky J. 1999. “When is a Cost Really a Benefit? Local Welfare Effects and Employment Creation in the Evaluation of Economic Development Programs”. Economic Development Quarterly 13 (1):46-54. Publisher's VersionAbstract

This article claims that the local welfare effects of employment generation are often treated inadequately in the evaluation of economic development programs. Opportunity costs of labor are often either ignored or overstated, resulting in misleading indicators of welfare changes. Appropriately accounting for these costs requires recognizing employment creation as a benefit in terms of the chain reaction that it sets off in the local labor market. This article uses the concept of “job chains” and describes the different labor market circumstances in which they are likely to form. The local development of these chains, the impacts of in-migrants on their length, and the likelihood of their completion within the local area are all particularly important economic development issues with public policy implications. The article discusses the empirical estimation of these chains and their implications for evaluating the welfare impacts of alternative economic development projects.

1998
Time-Distance Substitution in Halacha
D., Felsenstein. 1998.“Time-Distance Substitution in Halacha”. Pp. 67-86 in Brodsky H and Mitchell R.(ed), Land and Community; Geography in Jewish Studies. University of Maryland Press. Publisher's Version
Does Gambling Complement the Tourist Industry? Some Empirical Evidence of Import Substitution and Demand Displacement
M., Przybylski, Felsenstein D., Freeman D., and Littlepage L. 1998. “Does Gambling Complement the Tourist Industry? Some Empirical Evidence of Import Substitution and Demand Displacement”. Tourism Economic 4 (3):213-232. Publisher's VersionAbstract

The complementarities between tourism and gambling at the local level are examined empirically from two rather different gambling environments (Indiana, USA and Eilat, Israel) in order to show how gambling acts as an import substitution activity and impacts on existing demand. In both contexts, the sources of demand for gambling, the extent to which these are 'tourist' sources and the question of gambling-generated demand displacing existing tourist demand, are examined. Despite the rather different market and political contexts in Indiana and Israel, the findings on the gambling-tourism relationship and the effect of gambling on local economies, are remarkably consistent. In both cases, gambling is seen to be grounded in import-substitution rather than pure 'export' activity. Additionally, in both cases there is evidence that the introduction of gambling displaces tourist demand. The policy implications of these findings point to the need to differentiate between local and national impacts of gambling and between the local fiscal and local economic development impacts.

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