THE HOLLOWING-OUT PROCESS IN THE CHICAGO ECONOMY, 1975-2011

The metropolitan economy of Chicago has experienced a significant tran sformation in its economic structure over the past twenty years. Using a method for extraction of input-output tables that has been describe d elsewhere, it has been possible to produce an economic photograph of the changes in the Chicago region, annually, for the period 1975-2011 . This paper explores the nature of these structural changes through e xamination of the changes in the composition of the Leontief multiplie rs and changes in the economic landscapes interpreted through applicat ion of the multiplier product matrix. The resulting picture, at the ni ne-sector level of detail, reveals a hollowing-out process, with intra metropolitan dependence replaced by dependence on sources of supply an d demand outside the region. Furthermore, the analysis reveals a compl ex internal transformation, as dependence on locally sourced manufactu ring inputs is replaced by dependence on local service activities.