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Accession Number:
AD0478900
Title:
METHODOLOGY FOR INDUSTRY IMPACT ANALYSIS. VOLUME 1. METHODOLOGY AND SUMMARY RESULTS
Descriptive Note:
Technical paper,
Corporate Author:
RESEARCH ANALYSIS CORP MCLEAN VA
Report Date:
1966-03-01
Pagination or Media Count:
39.0
Abstract:
RACs participation in the Economic Impact Project, consists of a series of studies designed to determine the impact of the defense program on the economy. The ultimate objective of the project is to improve the capability of the Department of Defense DOD in appraising the economic effects of changes in military programs and force structure. This report presents an account of the research effort during the first phase of study, which was completed in December 1964. Concerned primarily with the development of a methodology for measuring industry impact, rough estimates for FY63-69 were prepared, identifying a wide range of industries that participate in the defense effort. The research was organized in terms of major budget categories. In the area of procurement to which primary attention was devoted, a model was developed for specialized military equipment, including techniques for studying a series of prototypes in depth, utilizing component information and contract sources. In this connection information was sought that would allow the quantification of in-house effort by contractors in order to approximate value-added distributions. Generally, the tracing efforts were successful to second- and third-tier suppliers of prime contractors responsible for the delivery of major end-items such as aircraft, missiles, ships, and tanks. The value-added data also served as a basis for estimating employment from Census industry-wide employmentvalue-added ratios.
Distribution Statement:
APPROVED FOR PUBLIC RELEASE
