Dynamic Nonmetropolitan Export-Base Modeling

Abstract

This paper investigated a time series export-base model of nonmetropolitan Nevada counties. Confirmatory factor analysis was used to bifurcate county employment, and county basic and nonbasic employment were tested for cointegration. Employing the Granger Representation Theorem, an error correction mechanism model was estimated. Error correction mechanism model forecasts were performed and long-run forecasts were evaluated. Given current microcomputer hardware and software, this paper provides a procedure to conduct dynamic rural impact analysis by employing a dynamic export-base model.