# Proposed Redefinition of the BEA Economic Areas

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URL: https://www.frixlaw.com/law-library/documents/fr%3A94-27471

## Record

- **Collection:** Federal Register
- **Document type:** Uncategorized Document
- **Published:** November 7, 1994

## Text

DEPARTMENT OF COMMERCE

Bureau of Economic Analysis
[Docket No. 941005-4305]

Proposed Redefinition of the BEA Economic Areas

AGENCY: Bureau of Economic Analysis (BEA), Commerce.

ACTION: Notice of proposed changes and request for comments.

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SUMMARY: In a previous notice in the Federal Register (56 FR 13049,
March 9, 1993), BEA announced its ``Intent to Revise the Boundaries of
the BEA Economic Areas'' and presented the procedures used to define
the current economic areas. This notice presents for public comment a
proposed redefinition of the economic areas, which reduces their number
from 183 to 174. Any additional changes to the proposed economic areas
will be based largely on the comments received. The resulting new
economic areas, along with a summary of the comments received, will be
presented in a later notice. At that time, the new economic areas will
supersede the current 183 BEA economic areas.

DATES: Persons who wish to comment on the proposed redefinition of the
BEA economic areas should do so in writing no later than December 22,
1994.

ADDRESSES: Written comments should be submitted to Kenneth Johnson,
U.S. Department of Commerce, Bureau of Economic Analysis BE-61,
Regional Economic Analysis Division, Washington, DC 20230; fax (202)
606-5321. Comments also may be sent by electronic mail on the Internet
to Kenneth Johnson at [email protected].

FOR FURTHER INFORMATION CONTACT:
Kenneth Johnson, (202) 606-9219; fax (202) 606-5321.

SUPPLEMENTARY INFORMATION:

Part I: Background

Under authority granted in 15 U.S.C. 175 et seq., BEA develops and
presents geographically detailed economic data and facilitates regional
economic analysis. As part of this obligation, BEA defined the 183
current economic areas in 1977. The economic areas cover the entire
nation. The redefinition now underway is necessary to maintain the
analytical usefulness of the areas in light of the substantial changes
in area commuting patterns shown by the 1990 Census of Population.
Each economic area consists of one or more economic nodes--
metropolitan areas or similar areas that serve as centers of economic
activity--and the surrounding counties that are economically related to
the nodes. (Metropolitan areas include metropolitan statistical areas
(MSA's), primary metropolitan statistical areas (PMSA's), and New
England county metropolitan areas (NECMA's).) Commuting patterns are
the main factor used in determining the economic relationships among
counties. The economic-area definition procedure requires that, as far
as possible, each area include both the place-of-work and the place-of-
residence of its labor force.
For some analyses, government agencies and businesses need data
that are more geographically detailed than economic-area data.
Government agencies often use relatively small areas for design of
their program regulations or implementation of their licensing
programs. Businesses need such detail for determining plant locations
and for defining sales and marketing territories. BEA is responding to
these needs as part of the economic-area redefinition by first defining
a set of 348 ``Component Economic Areas'' (CEA's) and then using these
as building blocks for redefining the larger economic areas.
Each CEA consists of a single economic node and the surrounding
counties that are economically related to the node. Of the nodes, 90
percent are metropolitan, and 10 percent are nonmetropolitan. Each
metropolitan area is the node of a different CEA; with minor
exceptions, the nonmetropolitan nodes are nonmetropolitan counties
where newspapers widely read in these areas are published.
In general, the procedure to redefine the economic areas is similar
to that used to define the current economic areas. First, nodes are
identified. Then, non-nodal counties are assigned to nodes, mainly
based on commuting patterns and on newspaper circulation. A procedural
difference is that now node identification and the assignment to nodes
of non-nodal counties are done in a more systematic way and at a more
geographically detailed level. The procedure results in the definition
of 348 CEA's; these are then aggregated to form 174 BEA economic areas.

Part II: Detailed Procedures

I. Identification of Nodes

With the exception of New England MSA's, each metropoltan area in
the nation is identified as a node of a CEA. Metropolitan areas consist
of 240 MSA's, 59 PMSA's, and 11 NECMA's. Thus, metropolitan areas serve
as nodes for 310 of the 348 CEA's.
Each of 38 nonmetropolitan counties is identified as a node of a
CEA in parts of the nation remote from metropolitan areas.
Identification of most of the nonmetropolitan nodes follows a four-part
process. First, analysis of commuting patterns for the nation's 2,305
nonmetropolitan counties shows that 1,112 of these are not closely
related to metropolitan areas. Second, analysis of newspaper
publication data for the 1,112 counties shows that 130 of these are
locations of newspapers whose circulations are recorded by the Audit
Bureau of Circulations, an organization whose membership includes
approximately 98% of U.S. newspaper circulation. Third, further
analysis of newspaper circulation and of population for the 130
counties shows that 68 of these have populations of more than 50,000,
or are locations of newspapers widely read in at least five counties,
or both. Fourth, a preliminary test attempting to use all 68 of these
counties as CEA nodes shows that only 35 of these qualify as nodes of
CEA's that contain at least five counties. These 35 counties are
identified as nonmetropolitan nodes.
The CEA associated with each of the 35 nonmetropolitan nodal
counties selected by the four-step process is named for the city in
which the county's major newspaper is published. The cities are:
Flagstaff, AZ; Jonesboro, AR; Idaho Falls, ID; Twin Falls, ID; Quincy,
IL; Manhattan, KS; Paducah, KY; Bowling Green, KY; Salisbury, MD;
Traverse City, MI; Marquette, MI; Mankato, MN; Worthington, MN;
Hattiesburg, MS (identified by the Office of Management and Budget as a
new MSA as of July 1, 1994); Meridian, MS; Tupelo, MS; Greenville, MS;
Missoula, MT; Butte, MT; Grand Island, NE; North Platte, NE; Norfolk,
NE; Scottsbluff, NE; Lebanon, NH; Hobbs, NM; Farmington, NM; Minot, ND;
Pendleton, OR; Aberdeen SD; Watertown, SD; Cookeville, TN; Lufkin, TX;
Staunton, VA; Clarksburg, WV; and Bluefield, WV.
Three CEA's, each of which consists of a group of closely related
nonmetropolitan counties in very remote parts of the country, do not
have newspaper-based nodes. These CEA's are named by their locations
and include a 7-county group defined by the Alaskan panhandle, a 13-
county group in northern Michigan, and an 11-county group in western
Oklahoma. The county containing the largest city in each of these areas
is the node for the CEA.

2. Assignment of Non-Nodal Counties to Nodes

Of the nation's 3,141 counties, 836 counties are in metropolitan
nodes and 38 counties are nonmetropolitan nodes. Each of the remaining
2,267 non-nodal counties is analyzed to determine the node to which it
is most closely related. The initial assignment of about 75 percent of
the non-nodal counties is based on journey-to-work data from the 1990
Census of Population. These counties are assigned to nodes based on
their largest county-to-county commuting flows. In many instances, the
association between a county and a particular node is based, not on
direct commuting ties to a nodal county, but on commuting ties to a
non-nodal county that is tied to the node. The initial assignment of
most of the other non-nodal counties is based on newspaper circulation
data. These counties are assigned to nodes based on the locations of
the regional newspapers that are most widely read in these counties. In
all cases, contiguity of a non-nodal county to a node or to another
non-nodal county already assigned to the node is required before the
initial assignment is made. The initial assignment of a few of the non-
nodal counties requires special procedures. These usually apply in
counties with very small populations or unusual contiguity problems.
The initial assignments of non-nodal counties are based on the
strongest county-to-county relationships; these need not reflect the
strongest county-to-CEA relationships. Following the initial
definitions of the CEA's, 373 counties are reassigned to ensure that,
to the extent possible, each county is assigned to the CEA with which
it has the strongest commuting ties. (Six counties do not meet this
objective because they are not contiguous with the CEA's to which they
have the most commuting.)

3. Aggregation to Economic Areas

The 348 CEA's are used as building blocks for the proposed 174 BEA
economic areas. CEA's are aggregated so that (1) as far as possible,
the labor force of each resulting economic area works and resides in
that area and (2) each resulting economic area is large enough
economically to be part of BEA's local-area economic projections
program. In general, aggregation to economic areas has two parts. In
the first part, the 59 CEA's with PMSA's as nodes are combined into 17
economic areas corresponding to the 17 consolidated metropolitan
statistical areas (CMSA's) that comprise the PMSA's. (A CMSA is an MSA
that has more than 1 million residents and is subdivided into two or
more PMSA's.) In the second part of the aggregation, each of 141 CEA's
that do not meet size and commuting criteria is combined with the CEA
to which it has the most commuting.

Part III: Map and List of the Proposed 174 BEA Economic Areas

Codes from 1 to 174 are assigned to the proposed economic areas in
approximate geographic order, beginning with 1 in northern Maine,
continuing south to Florida, then north to the Great Lakes, and
continuing in a serpentine pattern to the West Coast. With the
exception of three special-node areas (Alaskan Panhandle, Western
Oklahoma, and Northern Michigan), each economic area is named for the
node of its largest CEA. The following list provides economic-area
codes and names. Economic-area boundaries and codes are shown on the
map following the list.

------------------------------------------------------------------------
EA
Code Name
------------------------------------------------------------------------
001... Bangor, ME
002... Portland, ME
003... Boston-Worcester-Lawrence-Lowell-Brockton, MA-NH
004... Burlington, VT
005... Albany-Schenectady-Troy, NY
006... Syracuse, NY
007... Rochester, NY
008... Buffalo-Niagara Falls, NY
009... State College, PA
010... @New York-No. New Jersey-Long Island, NY-NJ-CT-PA (CMSA-70)
011... Harrisburg-Lebanon-Carlisle, PA
012... @Philadelphia-Wilmington-Atlantic City, PA-NJ-DE-MD (CMSA-77)
013... @Washington-Baltimore, DC-MD-VA-WV (CMSA-97)
014... *Salisbury, MD
015... Richmond-Petersburg, VA
016... *Staunton, VA
017... Roanoke, VA
018... Greensboro-Winston-Salem-High Point, NC
019... Raleigh-Durham-Chapel Hill, NC
020... Norfolk-Virginia Beach-Newport News, VA-NC
021... Greenville, NC
022... Fayetteville, NC
023... Charlotte-Gastonia-Rock Hill, NC-SC
024... Columbia, SC
025... Wilmington, NC
026... Charleston-North Charleston, SC
027... Augusta-Aiken, GA-SC
028... Savannah, GA
029... Jacksonville, FL
030... Orlando, FL
031... @Miami-Fort Lauderdale, FL (CMSA-56)
032... Fort Myers-Cape Coral, FL
033... Sarasota-Bradenton, FL
034... Tampa-St. Petersburg-Clearwater, FL
035... Tallahassee, FL
036... Dothan, AL
037... Albany, GA
038... Macon, GA
039... Columbus, GA-AL
040... Atlanta, GA
041... Greenville-Spartanburg-Anderson, SC
042... Asheville, NC
043... Chattanooga, TN-GA
044... Knoxville, TN
045... Johnson City-Kingsport-Bristol, TN-VA
046... Hickory-Morganton, NC
047... Lexington, KY
048... Charleston, WV
049... @Cincinnati-Hamilton, OH-KY-IN (CMSA-21)
050... Dayton-Springfield, OH
051... Columbus, OH
052... Wheeling, WV-OH
053... Pittsburgh, PA
054... Erie, PA
055... @Cleveland-Akron, OH (CMSA-28)
056... Toledo, OH
057... @Detroit-Ann Arbor-Flint, MI (CMSA-35)
058... *Northern Michigan, MI
059... Green Bay, WI
060... Appleton-Oshkosh-Neenah, WI
061... *Traverse City, MI
062... Grand Rapids-Muskegon-Holland, MI
063... @Milwaukee-Racine, WI (CMSA-63)
064... @Chicago-Gary-Kenosha, IL-IN-WI (CMSA-14)
065... Elkhart-Goshen, IN
066... Fort Wayne, IN
067... Indianapolis, IN
068... Champaign-Urbana, IL
069... Evansville-Henderson, IN-KY
070... Louisville, KY-IN
071... Nashville, TN
072... *Paducah, KY
073... Memphis, TN-AR-MS
074... Huntsville, AL
075... *Tupelo, MS
076... *Greenville, MS
077... Jackson, MS
078... Birmingham, AL
079... Montgomery, AL
080... Mobile, AL
081... Pensacola, FL
082... Biloxi-Gulfport-Pascagoula, MS
083... New Orleans, LA
084... Baton Rouge, LA
085... Lafayette, LA
086... Lake Charles, LA
087... Beaumont-Port Arthur, TX
088... Shreveport-Bossier City, LA
089... Monroe, LA
090... Little Rock-North Little Rock, AR
091... Fort Smith, AR-OK
092... Fayetteville-Springdale-Rogers, AR
093... Joplin, MO
094... Springfield, MO
095... *Jonesboro, AR
096... St. Louis, MO-IL
097... Springfield, IL
098... Columbia, MO
099... Kansas City, MO-KS
100... Des Moines, IA
101... Peoria-Pekin, IL
102... Davenport-Moline-Rock Island, IA-IL
103... Cedar Rapids, IA
104... Madison, WI
105... La Crosse, WI-MN
106... Rochester, MN
107... Minneapolis-St. Paul, MN-WI
108... Wausau, WI
109... Duluth-Superior, MN-WI
110... Grand Forks, ND-MN
111... *Minot, ND
112... Bismarck, ND
113... Fargo-Moorhead, ND-MN
114... *Aberdeen, SD
115... Rapid City, SD
116... Sioux Falls, SD
117... Sioux City, IA-NE
118... Omaha, NE-IA
119... Lincoln, NE
120... *Grand Island, NE
121... *North Platte, NE
122... Wichita, KS
123... Topeka, KS
124... Tulsa, OK
125... Oklahoma City, OK
126... *Western Oklahoma, OK
127... @Dallas-Fort Worth, TX (CMSA-31)
128... Abilene, TX
129... San Angelo, TX
130... Austin-San Marcos, TX
131... @Houston-Galveston-Brazoria, TX (CMSA-42)
132... Corpus Christi, TX
133... McAllen-Edinburg-Mission, TX
134... San Antonio, TX
135... Odessa-Midland, TX
136... *Hobbs, NM
137... Lubbock, TX
138... Amarillo, TX
139... Santa Fe, NM
140... Pueblo, CO
141... @Denver-Boulder-Greeley, CO (CMSA-34)
142... *Scottsbluff, NE
143... Casper, WY
144... Billings, MT
145... Great Falls, MT
146... *Missoula, MT
147... Spokane, WA
148... *Butte, MT
149... *Idaho Falls, ID
150... *Twin Falls, ID
151... Boise City, ID
152... Reno, NV
153... Salt Lake City-Ogden, UT
154... Las Vegas, NV-AZ
155... *Flagstaff, AZ
156... *Farmington, NM
157... Albuquerque, NM
158... El Paso, TX
159... Phoenix-Mesa, AZ
160... Tucson, AZ
161... @Los Angeles-Riverside-Orange County, CA (CMSA-49)
162... San Diego, CA
163... Fresno, CA
164... @San Francisco-Oakland-San Jose, CA (CMSA-84)
165... @Sacramento-Yolo, CA (CMSA-82)
166... Redding, CA
167... Eugene-Springfield, OR
168... @Portland-Salem, OR-WA (CMSA-79)
169... *Pendleton, OR
170... Richland-Kennewick-Pasco, WA
171... @Seattle-Tacoma-Bremerton, WA (CMSA-91)
172... *Alaskan Panhandle, AK
173... Anchorage, AK
174... Honolulu, HI
------------------------------------------------------------------------
The ``*'' denotes a nonmetropolitan-node name, the ``@'' denotes a CMSA
name; all other names are MSA's or NECMA's.

BILLING CODE 3510-06-M

TN07NO94.003

BILLING CODE 3510-06-C

Part IV: Availability of Additional Information

The text for this Notice and a detailed data file with county, CEA,
and economic-area codes is available, for downloading only, from the
New England Electronic Economic Data Center. Connect to the Data
Center's Internet node at neeedc.umesbs.maine.edu using the anonymous
FTP (username=``anonymous'' with no password) and ``get'' the binary
file EADATA.EXE from the node's root directory. (Do not use GOPHER or
MOSAIC Internet technologies at this node.) This file decompresses into
self-explanatory text files when the DOS command EADATA is used. Counts
of the number of counties in each CEA and economic area and of the
number of CEA's in each economic area are included to assist in
understanding and evaluating the proposed economic areas. The file
EADATA.EXE also is available through the Commerce Department's Economic
Bulletin Board (EBB). First-time users of the EBB may access it with
their personal computer and modem by dialing (202) 482-3870 and
following instructions. The user's cost is an annual fee of $45 and
per-minute connect charges, which vary by time of day; users will be
billed by the Department of Commerce. (The EBB is also available
through the Internet.) A hard-copy listing of the records in the
detailed data file is available for public review at the U.S.
Department of Commerce, Bureau of Economic Analysis, Public Information
Office, Room 1026, 1441 L Street, NW., Washington, DC. The hours of
availability are 8:30 a.m. to noon and 1:00 p.m. to 5:00 p.m. Monday
through Friday.

Part V: Summary of Comments and Responses

In the previous Federal Register Notice (56 FR, 13049, March 9,
1993) interested persons were invited to provide comments regarding
methodology for the economic area definitions. Two formal comments were
received. One suggested that greater clarity in the explanation of the
means by which nodes for the economic areas are selected would be
useful; a description of the selection process is included above. The
second comment specifically requested that the two-county region
defined by Nassau and Suffolk counties in New York be treated as
separate from the New York MSA in the redefinition procedures. Nassau-
Suffolk is a separate PMSA in the larger CMSA surrounding New York, so
it is treated separately in defining the CEA's. However, no counties
other than Nassau and Suffolk are in the Nassau-Suffolk CEA, and it was
grouped with other CEA's to form its economic area.

Public Review Procedure

All comments received in response to this notice will be available
for public inspection at the U.S. Department of Commerce, Bureau of
Economic Analysis, Public Information Office, Room 1026, 1441 L Street,
NW., Washington, DC. Hours of availability are 8:30 a.m. to noon and
1:00 p.m. to 5:00 p.m. Monday through Friday. A summary of the comments
and the set of final BEA economic areas will appear in a Federal
Register notice in early 1995.
Carol S. Carson,
Director.
[FR Doc. 94-27471 Filed 11-4-94; 8:45 am]
BILLING CODE 3510-06-M

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A94-27471. Public record. Not legal advice.