Economic Impact of Retirement Migration

Abstract

The applied research reported in this article focuses on the economic impact of retirement migration on a small rural state. A hypothetical policy designed to increase the number of retirees entering the state of Maine is analyzed using the regional economic modeling system, Regional Economic Models, Inc. (REMI). By comparing the simulated impact of the policy to a baseline projection, implicit economic multipliers that can be used for future policy analysis are generated. Based on the REMI simulation, the impact of retirement migration on the regional economy can be substantial. Additional descriptive information suggests that the short-run impact of retirement migration is significant and warrants serious consideration. © 1995, Sage Publications. All rights reserved.