november 6, 2003prof. andrew isserman university of illinois enhancing economic opportunities in...
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November 6, 2003 Prof. Andrew IssermanUniversity of Illinois
Enhancing Economic Opportunities in Rural Areas
Education, Research, and Extension
November 6, 2003 Prof. Andrew IssermanUniversity of Illinois
My Home Away from Home
• Community Economic Analysis: A How-To Manual
• Community Economics: Economic Structure and Change in Smaller Communities 60%
November 6, 2003 Prof. Andrew IssermanUniversity of Illinois
A Parallel Universe
• Agricultural Economics
• Regional Science / Regional Economics
“Strong potential exists for a growing relationship between agricultural economics and regional science.
Regional scientists, particularly regional economists, might have no closer kin than agricultural economists, and the marriage of regional, resource, environmental, and rural development economics could be a very fruitful one.”
November 6, 2003 Prof. Andrew IssermanUniversity of Illinois
Journal Structure
Current Journal Name Citations Cit%
AM J AGR ECON 35,283 60%
J AGR ECON 4,242 7%
AUST J AGR RESOUR EC 3,165 5%
J AGR RESOUR ECON 2,956 5%
CAN J AGR ECON 2,730 5%
J AGR APPL EC 1,893 3%
EUR REV AGRIC ECON 1,780 3%
November 6, 2003 Prof. Andrew IssermanUniversity of Illinois
Journal Structure
Current Journal Name Citations Cit%
INDIAN J AGR ECON 1,348 2%
REV AGR EC 1,306 2%
J AGR EC RES 1,231 2%
AGR ECON 1,121 2%
AGR RESOURCE EC REV 1,001 2%
IRISH J AGR EC RURAL 108 .2%
November 6, 2003 Prof. Andrew IssermanUniversity of Illinois
Journal Structure—RS
Current Journal Name Citations Cit%
Journal of Regional Science 11,589 38%
Papers in Regional Science 6,937 22%
Regional Science and Urban Economics
6,066 20%
International Regional Science Review
2,668 9%
Annals of Regional Science 1,837 6%
Review of Regional Studies 706 3%
November 6, 2003 Prof. Andrew IssermanUniversity of Illinois
Journal Structure—RS
Current Journal Name Citations Cit%
Revue d'Economie Rég et Urb 330 1%
J of Regional Analysis and Policy 233 .8%
Canadian J of Regional Science 162 .5%
Rev of Urb and Reg Dev Studies 139 .5%
Studies in Regional Science 131 .4%
(NE) Regional Science Review 47 .2%
Indian J of Regional Science 21 .1%
November 6, 2003 Prof. Andrew IssermanUniversity of Illinois
Most Cited Papers in Ag Econ
AUTHOR TITLE CitsYear
HANEMANN, WM WELFARE EVALUATIONS IN CONTINGENT VALUATION EXPERIMENTS WITH DISCRETE RESPONSES
2971984
HANEMANN, M; LOOMIS, J; KANNINEN, B
STATISTICAL EFFICIENCY OF DOUBLE-BOUNDED DICHOTOMOUS CHOICE CONTINGENT VALUATION
1271991
GARDNER, B EFFICIENT REDISTRIBUTION THROUGH COMMODITY-MARKETS
911983
November 6, 2003 Prof. Andrew IssermanUniversity of Illinois
Most Cited Papers in Ag Econ
AUTHOR TITLE CitsYear
MCCONNELL, KE AN ECONOMIC-MODEL OF SOIL CONSERVATION
771983
SHUMWAY, CR SUPPLY, DEMAND, AND TECHNOLOGY IN A MULTIPRODUCT INDUSTRY - TEXAS FIELD CROPS
721983
EALES, JS; UNNEVEHR, LJ
DEMAND FOR BEEF AND CHICKEN PRODUCTS - SEPARABILITY AND STRUCTURAL-CHANGE
701988
November 6, 2003 Prof. Andrew IssermanUniversity of Illinois
Most Cited Papers in Ag Econ
AUTHOR TITLE CitsYear
MCFADDEN, D CONTINGENT VALUATION AND SOCIAL CHOICE
701994
BALL, VE OUTPUT, INPUT, AND PRODUCTIVITY-MEASUREMENT IN UNITED-STATES AGRICULTURE, 1948-79
661985
BOWKER, JM; STOLL, JR
USE OF DICHOTOMOUS CHOICE NONMARKET METHODS TO VALUE THE WHOOPING CRANE RESOURCE
641988
November 6, 2003 Prof. Andrew IssermanUniversity of Illinois
Most Cited Papers in Ag Econ
AUTHOR TITLE CitsYear
ANTLE, JM ECONOMETRIC ESTIMATION OF PRODUCERS RISK ATTITUDES
641987
MOREY, ER; ROWE, RD; WATSON, M
A REPEATED NESTED-LOGIT MODEL OF ATLANTIC SALMON FISHING
601993
RAHM, MR; HUFFMAN, WE
THE ADOPTION OF REDUCED TILLAGE - THE ROLE OF HUMAN-CAPITAL AND OTHER VARIABLES
601984
November 6, 2003 Prof. Andrew IssermanUniversity of Illinois
Enhancing Opportunities in Rural Areas?
1. UNDOCUMENTED MEXICO-UNITED-STATES MIGRATION AND THE RETURNS TO HOUSEHOLDS IN RURAL MEXICO
2. DO ROADS CAUSE DEFORESTATION? USING SATELLITE IMAGES IN ECONOMETRIC ANALYSIS OF LAND USE
3. FARM DIVERSIFICATION AND RURAL-DEVELOPMENT4. THE VILLAGE AGAINST THE CENTER - RESOURCE DEPLETION IN
SOUTH-ASIA5. OFF-FARM LABOR-MARKET ENTRY AND EXIT6. MIGRATION TO THE UNITED-STATES AND MEXICAN RURAL-
DEVELOPMENT - A CASE-STUDY7. ECONOMIC-IMPACTS, VALUE ADDED, AND BENEFITS IN
REGIONAL PROJECT ANALYSIS8. RURAL-URBAN EFFECTS OF TERMINATING FARM SUBSIDIES9. LOCAL ECONOMIC-CONDITIONS AND WAGE LABOR DECISIONS
OF FARM AND RURAL NONFARM COUPLES9 of 500 most cited articles, 13-38 cits
November 6, 2003 Prof. Andrew IssermanUniversity of Illinois
Most Cited Papers in JRS
Author TI CitsYear
GREENWOOD, MJ HUMAN MIGRATION - THEORY, MODELS, AND EMPIRICAL-STUDIES
1441985
CARLINO, GA; MILLS, ES
THE DETERMINANTS OF COUNTY GROWTH
771987
RICHARDSON HW INPUT-OUTPUT AND ECONOMIC BASE MULTIPLIERS – LOOKING BACKWARD AND FORWARD
641985
November 6, 2003 Prof. Andrew IssermanUniversity of Illinois
Enhancing Opportunities in Rural Areas
1. THE CONTRIBUTION OF PUBLICLY PROVIDED INPUTS TO STATES ECONOMIES
2. DO PRODUCER SERVICES INDUCE REGIONAL ECONOMIC-DEVELOPMENT
3. THE DETERMINANTS OF 1963-77 REGIONAL MANUFACTURING GROWTH - WHY THE SOUTH AND WEST GROW
4. A MONOPOLISTIC COMPETITION MODEL OF SPATIAL AGGLOMERATION - DIFFERENTIATED PRODUCT APPROACH
5. WHAT ATTRACTS FOREIGN MULTINATIONAL-CORPORATIONS - EVIDENCE FROM BRANCH PLANT LOCATION IN THE UNITED-STATES
6. TAX COMPETITION WITH INTERREGIONAL DIFFERENCES IN FACTOR ENDOWMENTS
7. SERVICE EXPORTS AND REGIONAL GROWTH IN THE POSTINDUSTRIAL ERA
8. MIGRATION WITH A COMPOSITE AMENITY - THE ROLE OF RENTS9. TECHNOLOGY AND REGIONAL-DEVELOPMENT - A SURVEY
12 of 25 most cited articles, 40-144 cits
November 6, 2003 Prof. Andrew IssermanUniversity of Illinois
Implications/Assumptions
Regional Science community is a natural ally• Substantive, theoretical, and
methodological links to issues of importance to Rural America
• Common pedigree and training in Economics
• Applied, data-intensive• “Economics plus” ®
November 6, 2003 Prof. Andrew IssermanUniversity of Illinois
Key Quests in Rural Research—Theory
What do we want from rural development theory?1. Theory that describes and helps us understand
the world that is2. Theory that helps us predict how the world will
change3. Theory that helps us learn how we can change
the world4. Theory that allows us to measure the outcomes
of policies, programs, and plans
November 6, 2003 Prof. Andrew IssermanUniversity of Illinois
Theory We Need Follows from the Things We Do
We need theories that help us1. Inform debates about federal rural development
policy2. Identify fruitful community development strategies
and appropriate and effective state policies3. Evaluate the outcomes for rural folks and
businesses of private sector decisions, public programs, and technological changes
4. Understand the prospects of rural economic activities
November 6, 2003 Prof. Andrew IssermanUniversity of Illinois
Theory We Need Follows from the Things We Do (cont.)
5. Predict the consequences of infrastructure investment, trade agreements, health care finance, welfare reform, and more
6. Understand the distributional consequences of rural growth or decline
7. Understand whether we are working with or against market forces and whether we are attempting to correct anti-rural biases in policies or striving to create rural biases
8. Identify when the rural condition is the result of market failure, market efficiency, or government intervention
9. Create empirical models that allow us to measure all these things
November 6, 2003 Prof. Andrew IssermanUniversity of Illinois
Key Quests in Research—Subject
World view—location, place, and interaction in space matter
• Location of people: migration, housing, immigration
• Location of economic activity:economic development, agglomeration, advantage, clusters
• Interaction in space: transportation, land use, public finance, education, labor markets, poverty, communication and utilities, environment
=> Public policy on national, state, local, and international levels
November 6, 2003 Prof. Andrew IssermanUniversity of Illinois
Key Quests in Research—Methods
• Spatial analysis, modeling, and econometrics
• Policy and project evaluation• Impact assessment• Forecasting• Optimization
– Favorite methods Nobel Laureates:Klein, Leontief, Stone, McFadden
November 6, 2003 Prof. Andrew IssermanUniversity of Illinois
Sample Current Issues in Extension and Outreach
• Economic and fiscal impacts of agriculture, airports, colleges of veterinary medicine, community colleges, Wal-Marts, locks and dams, Jones Act, environmental restoration, strip mining, casino gambling, land use change, urban agriculture, home gardening, sports stadiums
• Feasibility and market potential for veterinary services, bio-energy, biotechnology, livestock, jails, military base conversions
• Public policy for land use, transportation, public finance, schools, economic development
November 6, 2003 Prof. Andrew IssermanUniversity of Illinois
Obstacles and Opportunities in Education
• Rural economics does not exist– Urban economics– Regional economics
• Rural economics can and should exist– Issue-driven like early urban economics– Aggressively rurally obsessed in the interpretation,
extension, and synthesis of• Regional economic development, location and land
economics, resource economics, transportation economics• Education, health, housing, poverty
November 6, 2003 Prof. Andrew IssermanUniversity of Illinois
Allies Who Care—Research Funders
• National Science Foundation, NIH, NCI, CDC• Economic Development Administration and
Appalachian Regional Commission• Many, many federal agencies• World Bank, OECD, EU, and other international
organizations• Foundations and other organizations—people,
places, rural, stewardship, quality of life, economic and social opportunity, education“Beyond Agriculture”
November 6, 2003 Prof. Andrew IssermanUniversity of Illinois
Allies—Extension
• The people in counties who feel– a lack of economic opportunity or – overwhelmed by opportunity and opportunists
• The organizations and foundations who fund research
• State legislators and local governments, business groups, and other organizations
November 6, 2003 Prof. Andrew IssermanUniversity of Illinois
Allies—Education
• The many teaching departments – who teach related courses for any minor or
specialization related to rural economics– who provide part of the “economics plus” ®
• Finance• Business management• Marketing• Policy analysis• Law
November 6, 2003 Prof. Andrew IssermanUniversity of Illinois
Regional/Rural Economics
A luxury you cannot afford?
November 6, 2003 Prof. Andrew IssermanUniversity of Illinois
Regional/Rural Economics
A luxury you cannot afford to be without?
November 6, 2003 Prof. Andrew IssermanUniversity of Illinois
Producers Care
• RURAL economic development• RURAL land and water economics• RURAL education and health economics• RURAL transportation and communication
economics• RURAL public finance• RURAL commercial and public facility
location
November 6, 2003 Prof. Andrew IssermanUniversity of Illinois
Gardner/Illinois Farm Bureau Chair
• We seek a colleague who has the intellectual curiosity, flexibility, and interest to study the wide range of local, state, national, and international policy issues when they are important to agriculture and rural economies, for example, public finance and local government, environment, income support and stability, biotechnology, trade, transportation, energy, education, and immigration.
November 6, 2003 Prof. Andrew IssermanUniversity of Illinois
Priorities to Action A
• Provide input to hiring decisions in government agencies by signaling what areas are important for our profession
• Listen to government agencies to learn what areas are important for our society
November 6, 2003 Prof. Andrew IssermanUniversity of Illinois
Priorities to Action B
• Increase funding opportunities through national grants to support economics research and education
• Take full advantage of the many funding opportunities available to support economics research and education
• Make clear the important scholarly and societal issues that we can address and how
November 6, 2003 Prof. Andrew IssermanUniversity of Illinois
Priorities to Action C
• Communicate to policy makers and stakeholders the importance of economics research, extension, and education
• Listen and be responsive to policy makers and stakeholders when they tell us of the importance of new economics research, extension, and education
November 6, 2003 Prof. Andrew IssermanUniversity of Illinois
Priorities to Action D
• Identify opportunities to collaborate with other disciplines and professional societies
• We have natural allies and decades of constructive interaction with them
November 6, 2003 Prof. Andrew IssermanUniversity of Illinois
Enhancing Economic Opportunities in Rural Areas—Priorities & Action
• Woeful capacity constraint– Research: numbers and
knowledge<2% solution is not
good enough– Teaching: virtually
non-existent– Extension: big job, few
people, incomplete teams
• First action priority if we are serious– Build capacity– Develop theory– Embrace and lead
allies– Exploit synergies:
agriculturalresourceregional and spatial
November 6, 2003 Prof. Andrew IssermanUniversity of Illinois
Are You Serious about Rural Area Opportunities?
• Will you hire to match the goal?• Will you seek to achieve critical mass?• Would you embrace regional/rural economics if
money were available—or is ag and resources already a bit much?
• Will you add rural America to traditions of (1) farm and home and (2) international?
• Will you take responsibility for rural folks or only folks as producers and food consumers?
November 6, 2003 Prof. Andrew IssermanUniversity of Illinois
Bad Things Happen When You Leave Rural Economics to Others
• Rural America defined nonsensically, the residual– Makes us look backwards and see “economic
opportunities in rural areas” all wrong• Data are poor.
– No data for “economic opportunity” in Rural America
– Gives us over a million metropolitan farmers– Grand Canyon is not rural– Hides fact that much of rural America is fastest
growing part of the nation and economically strong
November 6, 2003 Prof. Andrew IssermanUniversity of Illinois
Outside Core Based Statistical Areas
What proportion of the U.S. population lives in Rural America in 2000?
Answers:
1. 55 million people, or 19%
2. 59 million people, or 21%
3. 39 million people, or 14%
4. 7 million people, or 2 %
5. 89 million people, or 32%
November 6, 2003 Prof. Andrew IssermanUniversity of Illinois
Andy’s Rural America—Urban America as the Residual
November 6, 2003 Prof. Andrew IssermanUniversity of Illinois
Poverty Rate, 2000—Policy Categories, Calls for Action
November 6, 2003 Prof. Andrew IssermanUniversity of Illinois
How Much Effort to Enhancing Opportunity in this Rural Region
• Practice what we preach abroad?– Use the period of government support (or oil
revenues, etc.)
To build a sustainable economy that can compete in world markets
• Is the C-FARE community interested in creating this outcome?
• Is this truly a priority for action?