Mental Health and Stress Among Army Civilians, Spouses, and Soldiers in a Closing Military Community

When military community closure occurs, it can be challenging for service members and the surrounding community. Given that services and social networks disappear; this is particularly salient in overseas locations. Few studies have systematically assessed the impact of base closure on military community members. In the present study, 743 soldiers, 114 Army civilian employees, and 54 military spouses living in two closing U.S. military communities in Germany were surveyed about transformation stressors, mental health, and factors associated with better adjustment such as individual coping, leadership behaviors, and community cohesion. While individual coping was associated with fewer sleep problems, and individual coping and leadership were associated with less psychological distress, community cohesion generally overrode these effects in the final step of regression models. Thus, while coping and leadership are important, community connection appears to confer benefits to the affected individuals even in the context of base closure.

Real Assets and Capital Structure

We characterize the relation between asset structure and capital structure by exploiting variation in the salability of corporate assets. To establish this link, we distinguish across different assets in firms’ balance sheets (machinery, land, and buildings) and use an instrumental approach that incorporates market conditions for those assets. We also use a natural experiment driving differential increases in the supply of real estate assets across the United States: The Defense Base Closure and Realignment Act of 1990. Consistent with a supply-side view of capital structure, we find that asset redeployability is a main driver of leverage when credit frictions are high.