CICD Working Paper 2018-02

Supplement to Reservation Nonemployer and Employer Establishments

Randall Akee | University of California, Los Angeles
Elton Mykerezi | University of Minnesota
Richard M. Todd | Vice President and Advisor to the CICD

Published April 30, 2018

Abstract
In a closely related working paper called “Reservation Nonemployer and Employer Establishments: Data from U.S. Census Longitudinal Business Databases,” Akee, Mykerezi, and Todd (2018) describe the nonemployer segment of the reservation economy, in terms of per capita nonemployer establishment counts and the per capita revenue generated by reservation nonemployer establishments, as compared to the economy of nearby county areas. Regressions that relate these two per capita outcomes (number of establishments and revenue) to population level, a reservation dummy variable, and in some cases additional control variables are used to show how reservation versus county differences vary with the level of population. The statistical significance of these differences is assessed by computing distributions of reservation versus county outcomes based on multiple random draws of reservation and county regression equation coefficients, using the estimated variance-covariance matrices of the regression coefficients. However, Akee, Mykerezi, and Todd 2018 do not give full documentation of either their estimated coefficients and variance-covariance matrices or the reservation versus county differences in establishment and job numbers. This supplement to their work provides a more complete list of their regression results as well as a complete graphical summary of how the reservation-versus-county differences in nonemployer establishment numbers and revenue implied by these regressions vary with population levels.


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