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Journal of Public Management & Social Policy

Abstract

This article examines the economic impact of declining lake levels on the local economy in six counties near the publically managed Thurmond Reservoir, located along the border of Georgia and South Carolina. A regression analysis of the relationship between lake level elevations and lake front real estate transactions is used in conjunction with an input-output model to estimate the median monthly economic impact of a one-foot increase in lake level in terms of employment, output, disposable income, and net local government revenue on the six counties bordering the lake. Thurmond Lake elevations have a statistically significant impact on regional economic impact activity but the direction and magnitude depend on a variety of factors, including the size and diversity of each county’s economy and the proximity of the commercial centers within each county to the lake.

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