Syllabus

Rural Resource and Community Development

AGEC 4503

Instructor:

Dr. David W. Hughes
Rm. 181 Agricultural Administration Building
Office Phone: 388-2721
E-mail: XP2965@LSUVM.SNCC.LSU.EDU

Course Description:

Characteristics of developed and undeveloped rural areas; analysis of economic and related problems and potential for development; public policy issues concerning rural development.

Prerequisites: AGEC 2003 or equivalent (an introductory course in microeconomic theory).

Course Objectives:

  1. Increased students understanding and awareness of economic conditions for rural areas and communities in the United States and in Louisiana.
  2. Further develop student understanding of the basic concepts of economic theory.
  3. Introduce student to regional growth theory and concepts of space in economic analysis as related to rural areas and communities.
  4. Introduce student to factors that influence firm location decisions as related to rural areas and communities.
  5. Introduce student to problems of and prospects for rural communities in the provision of public services.
  6. Develop the ability of students to critically evaluate public policy issues concerning rural communities, agriculture and natural resource use.
  7. Develop student familiarity with computer based analytical techniques and software.

A collection of readings and handouts will form the reading material for the class.

 

Course Outline

I. Introduction

A. Organization of the course

1. Explanation of Student Project (Rural Parish Report)

2. Explanation of Class Discussion Sessions

3. Topics to be Covered and other Items

4. Assignment of Rural Parish

B. Communities and Rural Areas

1. What is a community? Chapter 1 Shaffer

2. What is development? Handout 1, Chapter 1 Shaffer Wall Street Journal, Why Our Towns Are Dying Charlotte Observer, Tide of Newcomers Raises Rural Hackles

3. What is a rural area?

Class Discussion (CD) 1: What is Development? (Read H.O. 1, Wall Street Journal & Charlotte Observer)

4. The Changing Nature of Rural Areas in the U.S. and in Louisiana

a. The USDA rural county types:

Handout 2
The Economist, "Telecommunications in Rural Kansas."

Wall Street Journal, "Many Rural Regions are Growing Again."

Drabenstott and Smith, "Regional Variation in the U.S. Rural Economy: Implications for Rural Policy in the 1990s." pages 1-8

Deavers, "Rural America: Lagging Growth and High Poverty...Do We Care?" Choices (2nd Quarter 1989)

Maps from Redman and Rowley and GAO

b. Changing Structure of US Agribusiness

    Handout 3

    Gale and Henderson, "Where Have All the Farmers Gone?" Choices (4th Quarter 1991)

    Reimund and Petrulis, "Dim Prospects for Agricultural Employment." Choices (4th Quarter1987).

    Barkema, Drabenstott and Stanley, "Processing Food in Farm States: An Economic Development Strategy for the 1990s." Kansas Federal Reserve, Economic Review. Aug. 1990

    Joint Industry Project on ECR. "ECR 1994 Progress Report." The Research Dept., Food Marketing Institute, Washington, DC. 1995. Pages 1-3, 9-14, 84-93.

    Kurt Salmon Associates, Inc. "Efficient Consumer Response, Enhancing Consumer Value in the Grocery Industry." Research Dept., Washington, DC., 1993. Pages 1-24.

c. Sustainable Agriculture and Rural Development

CD 2: The Implications of Sustainable Agriculture for Rural Economic Development (Read Ikerd, Byrd)

Ikerd, "Sustainable Rural Community Development." Paper Presented at An. Meetings of Assoc. of Agr. Econs., August 1991, Manhattan KS.

Bird, "The Rural Heartland in the Nineties: A New Way of Life or Lagging Earnings." Choices (2nd Quarter 1990), and, Bird, "Virtual Large Farms and Exurban Communities: Keys to Sustainable Agriculture." Choices (3rd Quarter 1992)

d. Changing Structure of Louisiana Rural Parishes

Chapman and Christy, "Structural Changes in the Sugar Industry." Louisiana Rural Economist (LRE).

Hughes and Harrison. "The Changing Contribution of Louisiana Agribusiness at the Parish Level." Louisiana Agriculture (LA).

Maps from Redman and Rowley

CD 3: Examine the question: What is the past and current economic structure of rural America or what is wrong and what is right about this T-shirt?

Version 1 Due: Facts about and Analysis of the Economic Structure of Your Rural Louisiana Parish

 

II. Growth of Rural Regions

A. Basic concept in the growth of rural areas

1. Introduction to Input-Output Analysis

a. Basics of Input-Output (I-O) Analysis: Handout 4
b. Introduction to IMPLAN (Computer Lab)
c. Forward and Backward Linkages in an I-O

2. Income, product, and resource flows in an economy

Gordon Macroeconomics, pages 30-31,
Handout 5,
Dairymen's Digest, "New Database Measures Ag Value."

3. Concept of a Multiplier and Impact Analysis

a. Input-Output Analysis

Handout 6,
Hughes, "Multiplier Analysis of Agriculture in Louisiana's Economy." LA.

Lab Assignment 1 Due

b. Economic Base Theory,

Handout 7,

Darling, "Understanding Your Community's Economy." CD Community Development Series, Cooperative Extension Service, Kansas State University, Manhattan.

Shaffer p. 27-35; p. 256-273

Henning, Hughes, and Truxillo. "An Application of Export Base Theory to Measure the Economic Impact Tourism in Rural Louisiana Parishes." Southwest Economic Review.

4. Shift-Share Analysis

Handout 8,

Hughes and Banks, "A Shift-Share Analysis of the Louisiana Food Processing Industry From 1977 to 1987". LRE.

Lab Assignment 2 Due

B. Why Rural Regions and Communities Grow or Decline

1. General Theories: Neoclassical Growth Theory Pros and Cons, Handout 9, Shaffer p. 12-25

1st Hour Exam (A List of Potential Discussion Questions will be provided)

Version 2 of Rural Parish Paper Due: Theoretical Explanation of Economic Structure of Your Rural Louisiana Parish

2. Concepts of Economic Space

a. Location Theory with an Emphasis on Agribusiness

1. Spatial Markets from the input side, Kohls and Uhl pages 94-97, Handout 10

2. Spatial Markets from the output side, Handout 11, Greenhut pages 140 -156.

Lab Assignment 3 Due: Location of the Agricultural Processing Plant: A Simulation Approach.

3. Impact on Local Economies
Sumners, " Small Towns Beware: Industry Can Be Costly.", Planning. Shaffer, pages 236-242

CD 4: Greedy Fat Cat Developers versus No Growth Bleeding Heart Environmentalist or Should a new plant be allowed to locate in your rural community? (All the Location Theory Readings)

b. Central Place Theory
Handout 12, Shaffer Chapter 6
Darling and Tan. "Retail Trade Patterns of Rural Kansans." Choices (2nd Quarter 1990).

c. Product cycle Theory: Handout 13

Version 4 of Rural Parish Paper Due: Theoretical Explanation of Economic Structure of Your Rural Louisiana Parish

 

III Role of government

A. Justification for Providing Public Services in Rural Areas

1. Public Goods Theory, Handout 14

2. Externalities, Cramer and Jensen p. 402-405

3. Distributional Concerns

B. Problems in the Provision of Public Services in Rural Areas

1. Education as an Example
Ch.1 McGranahan, Introduction. from "Education and Rural Economic Development." UDSA-ERS.

2. "The Funding Issues, Reeder on Rural Governments Facing New Fiscal Strains." Choices (4th Quarter 1987)

Report: Theoretical Explanation of Economic Structure of Your Rural Louisiana Parish due May 3rd

CD 5: Why is rural America the way it is?

 

Grading:

Undergraduate -

38 % exams (final will be cumulative)

test 1 and test 2 each 14%
Final Exam: 10%

30 % Economic Structure Report

16 % class attendance and discussion

16 % Homework

All graduate students in economics or agricultural economics and Ph.D. students in all fields will be expected to answer an extra question on each test. All graduates students will expected to write a paper on an appropriate topic of 10 to 20 double spaced, typed pages in length.

Graduate -

40 % Exams (final will be cumulative)

test 1 and test 2 each 15%
Final Exam: 10%

20 % Economic Structure Report

20 % Paper

10 % Class attendance and discussion

10 % Homework

 

Grading Scale

A = 100-90

B = 80-89

C = 70-79

D = 60-69

F = Below 60

Discussion grade will be divided between the number of discussion sessions that are actually held and a overall class discussion grade. Each student will be allowed one drop for their discussion grade.

Class Attendance and Behavior:

Class attendance along with proper classroom behavior is expected. I reserve the right to hold pop quizzes (written or oral) as warranted with appropriate adjustments in grading policy. Cheating will be prosecuted to the fullest extent of the law.

Homework:

Due by 5:00 P.M. on the due date. Grade will drop by 5% for every day late (weekends count as a single day) to a minimum of 70%. Assignments will be accepted till the Friday (at 5:00 P.M.) of closed week (i.e., the last day of class). Students with on time assignments only, who received a grade of less than 70%, have the option of reworking their assignment once to raise their grade on the assignment up to 70%. The policy also applies to the various versions of the rural parish report.

Tests:

Makeup tests will not be given except under extraordinary conditions. Students must notify me before the test if they are unable to take the exam.

 

Review Sessions:

I am willing to hold a minimum of one and possibly two review sessions priors to exams.

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