Digital Commons Network^™

Grand Rapids Economic Forecast 2006, Hari Singh, Nancy Boese

Seidman Business Review

Our latest survey forecast for the greater Grand Rapids economy (Kent, Ottawa, Muskegon, and Allegan Counties) was conducted in November 2005.

• Business Confidence has suffered a marginal decline and is expected to be flat for 2006

• Employment growth is expected to be very modest, at best 0.5% for 2006

• Overall sales are expected to grow at a rate comparable to last year, around 3% for 2006

• Exports continue to be a bright spot; expected growth is 5% for 2006

West Michigan-Grand Rapids Commercial Real Estate Review And Forecast, Matt Abraham

Seidman Business Review

West Michigan has endured and persevered through a considerable economic hardship throughout the past several years. Despite the odds, even the most troubled sectors of the commercial real estate industry have slowly recovered and are showing signs of further growth in the coming year. The following article will give a depiction of how the market has performed and where the recent trends are heading in the coming year. All information is based on a compilation of data collected for each division of commercial real estate for the 2005 year.

How School Quality Impacts Housing Values: Some Regional Evidence, John W. Reifel

Seidman Business Review

Most consumer goods have to stand the test of the market; firms that price too high or produce goods of a quality that is too low generally fair poorly. One might think that the goods and services supplied by local governments avoid the market test because governments can force us to pay for them through our taxes. But Charles Tiebout, in an influential article published in 1956, showed how local public goods and services, such as public schools, police, and local environmental quality, also have to withstand the rigors of the market.

West Michigan Stock Returns, Gregg Dimkoff

Seidman Business Review

Stocks of companies based in West Michigan usually outperform the national market indexes. That happened again in 2005, sort of. Table 1 below shows that West Michigan stocks outperformed both the Dow Jones Industrial Average and the NASDAQ Composite Index but fell short of the S&P 500 Index.

How Economically Literate Are You?, Amber Brown

Seidman Business Review

How much do Americans know about economics? Recent surveys point out that the answer to this question is “not nearly enough.” Results have illustrated gaps in understanding of even the most basic of economics principles. The lack of understanding isn’t limited to the general public; even current and former economics students have done poorly answering questions that check their general knowledge.

The Cost-Benefits Of Ocean Vessel Shipping In The Great Lakes: Value To Industry Vs. Environmental Damage, John C. Taylor

Seidman Business Review

The Great Lakes - St. Lawrence Seaway Maritime System, depicted in Figure 1, has been extremely important to the development of the North American mid-continent and continues to play a vital role in the West Michigan economy. The System allows ocean vessels to carry freight between the Lakes states and overseas destinations, and also allows for movement of goods on laker vessels both wholly within the Lakes and between the Lakes and eastern ports such as Montreal and Quebec City. However, the System’s overall importance to the region’s economy has been reduced, and the nature of the contribution has moved …

Free Trade With Thailand - A New Threat For Michigan?, Simons Gerry

Seidman Business Review

In 2003, President Bush announced that the U.S. would enter into trade negotiations with Thailand for a possible U.S.- Thailand Free Trade Agreement (UST-FTA). This is part of the President’s desire to develop closer economic ties with the 10 ASEAN countries (Association of Southeast Asian Nations). The fifth round of negotiations for this FTA was completed in September 2005. The U.S. trade representatives hope to finalize the details of the agreement in early 2006, after which it would need to go to Congress to be ratified.

Health Savings Accounts: A New Approach To Control Rising Health Insurance Premiums, Jeff S. Rubleski

Seidman Business Review

Health Savings Accounts (HSAs) are a hot topic in the employee benefits arena, as employers of all sizes look for ways to control the relentless rise of health insurance costs. HSAs fall under the category of “Consumer-Directed” healthcare plans, which are designed to involve the consumer more in the financing and decision-making process related to the use of healthcare services. Figure 1 shows the average increase in health insurance premiums, workers’ earnings, and overall inflation from 1988 through 2005. In recent years, health insurance premiums have exceeded the rise in workers’ earnings and overall inflation by a wide margin.