Economic Competitiveness of Washington, DC and the Region

June 01, 2008

Funding:  District of Columbia Office of Revenue Analysis

Summary:  Our project asked what affects the economic competitiveness of the District of Columbia and why business establishments locate (or do not locate) in the District.  To answer these questions, our analysis considered the factors that affect the overall regional economy and the factors that affect the District given the state or nature of the regional economy.  The project created a profile of the overall District economy as it relates to both the Washington metropolitan regional economy and the national economy.   We also produced a set of statistical models that predict economic performance for the region, and then for the District, that take into account the wide-range of factors that we know affect the economy, such as the nature of the local labor market, land costs, energy costs, taxation, transportation infrastructure, and so on. These models will give us the capacity to predict how changes in local conditions – including policy changes in areas such as taxation, education of the labor force, and business regulation – are likely to affect future economic performance.