I apologize for sending so many updates.

I was able to get the feature I desire by adding the following to the top of the exported LaTeX and replacing "itemize" with "packed_item". 

\newenvironment{packed_item}{
\begin{itemize}
  \setlength{\itemsep}{1pt}
  \setlength{\parskip}{0pt}
  \setlength{\parsep}{0pt}
}{\end{itemize}}

It would be preferable by far to be able to get this effect straightaway in exported pdfs. 

But I think I need to  change my mode of outlining or else find  a way to reduce the spacing in sectioning-based outlines in the exported LaTeX.  Perhaps a macro to convert from ** based outlines to plain list (-) outlines. 


Alan