The Park Place Economist


The purpose of this study is to look at this apparent increase in demand for fire protection services in the theoretical framework of derived demand. The theory of derived demand tells us that the demand for labor in a certain field is determined by the demand for the goods or services produced by that labor (Freeman, 1972). More specifically, we should expect to see a shift to the right of the demand curve for fire protection services since September Eleventh. This should lead to greater employment levels and higher wages in the labor market for fire fighters.