| Abstract: | This paper presents the specification, estimation, validation, and application of a modeling study which analyzes the possible impacts of a resource industry on a state economy. The Commodity Regional Econometric Annual Macro Model of West Virginia (CREAM model) is composed of a commodity model of the West Virginia coal industry and a macroeconometric regional model of the West Virginia state economy. The model describes the detailed interrelationship between the primary commodity sector and the rest of the economy of the region. The CREAM model utilizes the concept of engine of growth at the regional level and shows the impacts of market fluctuations in the demand for and value of coal on the economy of the state. |
