faces a problem. If its economic base is concentrated in sectors that are growing, then it is in good shape. Methodologically, economic base analysis views the region as if it were a small nation and uses notions of relative and comparative advantage from international trade theory (Charles Tiebout 1963). In a sense, the activity is macroeconomics "written small", and it has not been of much interest to urban economists in recent years because it does not get at within-city relationships. The analysis usually takes US growth patterns as a given. The fates of regions are determined by trends in the national economy. Assumptions As H. Craig Davis points out, there are a number of assumptions on which economic base analysis is conducted. These include (1) that exports are the sole source of economic growth (investment, government spending, and household consumption are ignored); (2) that the export industry is homogeneous (i.e., that an increase or decrease of one export does not affect another); (3) the constancy of the export/service ratio; (4) that there is no inter-regional feedback; and (5) that there is a pool of underutilized resources. References Quintero, James. 2007. Regional Economic Development: An Economic Base Study and Shift and Shares Analysis of Hays County, Texas. Applied Research Project. Texas State University. http://ecommons.txstate.edu/arp/259/ Regional economics History of economic thought