THE LOCAL EFFECTS OF LARGE DAM RESERVOIRS: U.S. EXPERIENCE, 1975–1995

Dam construction has been an important component of economic development initiatives in the United States. However, few comprehensive empirical studies examine the effects of such projects on local employment and income. This paper employs quasi-experimental control group methods to examine the effects of large dam reservoirs on county income, earnings, population and employment growth for dams opened in the U.S. during the period 1975–1984. The paper shows that large dam reservoirs have some statistically significant positive effects and tend to stimulate growth. There is considerable variation, however, with dams constructed for flood control purposes and dams further away from markets and large cities having less of an effect.     

New highways as economic development tools: An evaluation using quasi-experimental matching methods

Stimulating economic growth and development in rural and economically lagging regions is the goal of several federal and state highway programs. This paper examines the effectiveness of highway investment as an economic development tool. A quasi-experimental matching method is used to examine the effects of interstate highways on counties which obtained links during the period 1963–1975 or are in close proximity to these newly linked counties. The results show that the beneficiaries of the interstate links in terms of economic growth are interstate counties in close proximity to large cities or having some degree of prior urbanization, such as a city with more than 25,000 residents. Rural interstate and off-interstate counties exhibit few positive effects.