Brief Summary of Minutes of Annual Meeting

Given budget constraints and the inability for many Project members to afford to travel to Napa Valley for the WRSA meetings in 2009, only 7 project members could attend the NE-1029 meeting. Each of the members discussed their current line of research. There seemed to be a current theme that research interests focused on broadband, Going Local, local public finance, and health. There was also discussion of having a Special Proceedings at Agricultural and Resource Economics Review. This will be decided at the 2010 meetings.

Within the last year the team of researchers associated with NE-1029 has conducted research across a broad array of topics related to the projects four objectives. There have been several important forms of cross-state cooperation as evident in this body of research. A large share of research activities and outputs were conducted collaboratively across states. The most relevant example is the recent publication of Targeting Regional Economic Development. A book edited by three Project members introduces analytical tools for promoting economic development not by random industrial attraction but by exploring the potential for certain industries in certain areas. (Deller, Goetz, and Harris, 2009). Many Project members contributed articles to this book (Deller, Barkley, Woodward, Gabe, Davis, Harris, Johnson, Goetz, Shields). These models can be employed within a region to help communities identify industries that might be well-suited for location. In addition, researchers in Kentucky, Nevada, Arizona, Idaho, Utah, and Hawaii are jointly developing the Community Business Matching Model, a modeling strategy that matches the wants of a community with the needs of businesses. Another important type of cross-state cooperation is the sharing of research methods and data sharing across the states (Stenberg, 2008, Renkow, and Morris). In the last year, many Project members investigated the use and impact of access to broadband. During calendar year 2008, NE-1029 members made progress on all four of the projects objectives. Accomplishments are presented by objective below. Objective 1: To better understand the emerging opportunities and threats to the economic structure of non-metropolitan communities arising from forces that change the size or structure of rural markets. We focus on broadband, biofuels and renewable energy, and health care. NE-1029 researchers examined the value of broadband on rural economies. These studies focused on both farm and rural internet use. Research findings suggested that rural businesses are successfully using e-commerce to expand markets and reduce costs. Other work conducted by NE-1011 members in Ohio focused on the evolution of housing, population and employment patterns in various states. These studies explored the changing nature of population dynamics, land use, and mobility patterns in various states, as well as the attendant implications for local and state policy. Several NE-1029 researchers investigated the impacts of the biofuel boom on rural communities. While previous research has focused on corn-based ethanol in the Midwest focused researchers in Kentucky and North Dakota focused on alternative biostocks such as switchgrass, woody plants, and agricultural residue. Other Project members looked more at the impact of policy on the ethanol and renewable energy markets. Other work under this objective focused on the effects of the creative economy of the United States, finding that the positive impacts associated with the creative sectors is largely confined to urban areas. Researchers in Kentucky have continued to study the impact of gambling on the horse industry. Finally, research was conducted on the effects of local economic instability on rural business location. This work suggested that businesses are attracted to areas with high short-term and seasonal stability; that annual fluctuations in local employment are not a significant deterrent to new business activity; and that service businesses are particularly sensitive to local employment fluctuations. Objective 2: To determine the root causes of changes in rural labor markets, the employment and demographic growth that are likely to occur in the future, and the degree to which these factors are modified by workforce development policies. Research by NE-1029 members focused on a variety of rural labor market issues. Researchers in Ohio studied the diversity of economic outcomes in metropolitan areas from recent immigration. The study found that the largest impact to be increased net out-migration of natives in the more remote rural counties. Dramatically less out-migration of natives occurred in manufacturing-dependent counties, which also experienced reduced employment rates suggesting greater job queuing. Immigration was positively associated with net migration in persistently high-poverty counties. Resarchers in Idaho explored the wage divergence between Idaho wage earners and the national wage averages. The study found that mining and lumber and wood products manufacturing sectors play a minor role at best in explaining wage divergence in Idaho between 2001 and 2005. More important sectors in widening-wage-gap process in Idaho are computer and electronics products manufacturing as well as heavy and civil engineering construction. Objective 3: To understand the effects of public policy on rural areas and rural industries. Several NE-1029 researchers investigated local and state public finance issues. Researchers in Missouri, Wisconsin, Maine, and Michigan focused on changing levels of fiscal stress, how municipalities are responding to those changes, and the nature of state-local fiscal relationships. An important element of that work examines how tax and expenditure limitations influence economic growth and development. Research completed by Project members from Wisconsin and Missouri constructed a set of indices that capture the characteristics state and local tax and expenditure limitations (TEL) for a panel of the 50 U.S. states for the period 1969 to 2005. Then, they used the panel data to estimate a set of economic growth models to explore the relationship between TELs and economic performance. Other work by NE-1029 members examined specific types of government investments and policies. Research was conducted on the impacts of federal, state and local investments in biofuels and renewable energy. In addition, other research looked at changing education finance policy and local government spending. Objective 4: To identify community characteristics associated with viable and healthy rural communities and investigate policy alternatives to enhance these characteristics. Within the last 5 years, there has been tremendous focus on the local foods movement as well as other promoting other locally owned enterprises, particularly agri-tourism as a way for a rural community to become more sustainable. NE-1029 group members have recognized the need for research in this area but have also realized that its almost too soon to determine the effectiveness of this economic strategy for small rural communities. The research thus far has focused on a case by case basis. For example, there has been work done on the economic on the role of agritourism in Western States. In addition, some have also looked at the economic impact of farmers markets. It is expected the research will become more robust and more policy specific within the next few years.

Chokie, Menghis and Mark D. Partridge. Poverty Dynamics in Canadian Communities: A Place-Based Approach. Growth and Change, 39 (June 2008, 2): 313-340. Davis, Alison and Thomas R. Harris, The Use of Double Hurdles Models: An Application to Nevada" in Targeting Regional Economic Development, editors Stephan Goetz, Steven Deller and Thomas Harris, March 2009. Deller, Steven C., Victor Lledo and David Marcouiller "Modeling Regional Economic Growth with a Focus on Amenities" Review of Urban & Regional Development Studies 20(2008) Deller, Steven "Community Economic Development." in, ed. The Encyclopedia of Rural America. Grey Publishing, 2008. Fortenbery, Randall T. and Steven Deller "Understanding Community Impacts: A Tool for Evaluating Externalities from Local Bio-Fuels Production" Journal of Extension 46(2008) Goetz, Stephan, Steve Deller, Thomas Harris, and Alison Davis. "What Have We Learned?" in Targeting Regional Economic Development, editors Stephan Goetz, Steven Deller and Thomas Harris, March 2009. Gabe, Todd M., Local Economic Instability and Business Location: The Case of Maine. Land Economics, forthcoming. Gabe, Todd M., Local Economic Instability and Business Location: The Case of Maine. Land Economics, forthcoming. Goetz, Stephan, G., Deller, Steven C. and Harris, Thomas. (eds). Targeted Regional Economic Development, 2009. Hughes, David. Rural-Urban Economic Linkages: Implications for Industry Targeting Recommendations. in S. Goetz, S. Deller, and T. Harris (eds.) Targeting Regional Economic Development, Philadelphia: Taylor & Francis (Forthcoming, 2008). Hughes, David W. Cheryl Brown, Stacey Miller, and Tom McConnell. Evaluating the Economic Impact of Farmers Markets Using an Opportunity Cost Framework. Journal of Agricultural and Applied Economics. 2008 40(1): 253-265. Kanlaya Jintanakul, Daniel Otto Factors Affecting Hospital Choice for Rural Iowa Residents, Review of Regional Studies , Forthcoming Kriesel, Warren, Craig Landry and Andrew Keeler. Coastal Erosion Management from a Community Economics Perspective: The Feasibility and Efficiency of User Fees. Journal of Agricultural and Resource Economics. 37(2): 376-88. Partridge, Mark D., Dan S. Rickman, and Kamar Ali (2008) Recent Immigration and Economic Outcomes in Rural America. American Journal of Agricultural Economics, 90 (December, 5): 1326-1333. Partridge, Mark D., Dan S. Rickman, Kamar Ali and M. Rose Olfert. (2008). Lost in Space: Population Dynamics in the American Hinterlands and Small Cities. Journal of Economic Geography. 8 (November, 6): 727-757. Partridge, Mark D. and Dan S. Rickman. Place-Based Policy and Rural Poverty: Insight from the Urban Spatial Mismatch Literature. Cambridge Journal of Regions, Economy and Society, 1 (2008, 1): 131-156. Partridge, Mark D. and Dan S. Rickman. Does a Rising Tide Lift All Metropolitan Boats? Assessing Poverty Dynamics by Metropolitan Size and County Type, Growth and Change, 39 (June 2008, 2): 283-312 Partridge, Mark D., Dan S. Rickman, Kamar Ali and M. Rose Olfert. The Geographic Diversity of U.S. Nonmetropolitan Growth Dynamics: A Geographically Weighted Regression Approach. Land Economics, 84 (May 2008,2): 241-266. Partridge, Mark D. and Dan S. Rickman. Distance from Urban Agglomeration Economies and Rural Poverty. Journal of Regional Science, 48 (May 2008, 2): 285-310. Partridge, Mark D. and Dan S. Rickman. CGE Modeling for Regional Economic Development Analysis. Regional Studies, (February 5, 2008, Online) Partridge, Mark D., Dan S. Rickman, Kamar Ali and M. Rose Olfert. Employment Growth in the American Urban Hierarchy: Long Live Distance. Berkeley Journal of MacroeconomicsContributions. 8 (2008, Issue 1). Available at: http://www.bepress.com/bejm/vol8/iss1/art10. Skidmore, Mark and Craig Maher, Changing Education Finance Policy, School Referenda Activity and Success Rates: Evidence from Wisconsin, Public Finance Review, Vol. 36, No. 4, 2008 Skidmore, Mark and Mehmet Tosun, Do New Lottery Games Stimulate Retail Activity? Evidence from West Virginia, Journal of Regional Analysis and Policy, Vol. 38, No. 2, 2008. Skidmore, Mark and Steve Deller, Is Local Government Spending Converging? Eastern Economic Journal, Vol. 34, No. 1, 2008. Stenberg, P.L., M. Morehart, S. Vogel,V. Breneman, J. Cromartie, D. Brown, D. Broadband Internet's Value for Rural America, Economic Research Report, ERR-78, U.S. Department of Agriculture, August 2009. Stenberg, P.L., Rural Digital Economy, ERS Briefing Room. Stenberg, P.L. and M. Morehart. "Characteristics of Farm and Rural Internet Use in the United States," in Yogesh Dwivedi, et al (eds.), Handbook of Research on Global Diffusion, Idea Group, Inc., 2008, pp. 395-406. Thilmany, Dawn, J. Wilson and P. Watson, The Role of Agritourism in Western States: Place-Specific and Policy Factors Influencing Recreational Income for Producers. Forthcoming, Review of Regional Studies.