Return
to Syllabi -- Community Economic Network Home Page Instructor:
David S. Kraybill
340 Agricultural Administration Building, Department of Agricultural Economics
Ohio State University - - - - - - Phone: 292-8721; E-mail: KRAYBILL.1@OSU.EDU
Time: Monday and Wednesday, 1-3 p.m.
Classroom: Room 102, Kottman Hall
Office Hrs: By appointment
Credit Hrs: 4 credits
Scope:
This objective of this course is to use economic theory to explain the growth of sub-national regions. Students will gain a thorough understanding of long-standing and recent theories of regional growth. Strengths and deficiencies of existing theories will be examined. The ability of government policies to influence regional growth will be assessed, and criteria for public intervention in regional economies will be reviewed. The course will place particular emphasis on the economic growth problems of rural regions.
Grading:
Student performance in the course will be based upon a research replication project (20 percent), an original research paper (40 percent), and a final exam (40 percent). Research replication project: the student will either (a) obtain the data from the author of a published paper and attempt to replicate the empirical results or (b) implement the method of a published paper using a new dataset. The final product will be a written summary (around 15-20 pages, double-spaced) describing the paper to be replicated, the methods actually used by the student, and the results obtained. Original research paper: the student will write a research paper suitable for submission to an academic journal in regional economics. The paper must include empirical analysis and will address the following: problem identification, description of relevant theory, description of empirical methods to be used, description of data used in the analysis, presentation and interpretation of results, policy implications, and conclusions. The original research paper may be an extension of the model and method in the research replication paper. Final exam: will cover the readings and lectures.
Readings:
Required readings should be completed before the lecture for which they are assigned. All readings are on reserve in the agricultural library.
Statement on Academic Misconduct: Academic misconduct of any kind will not be acceptable. To resolve any doubt about what activities constitute academic misconduct and what procedures are followed, consult the instructor. Faculty Rule 333-5-54 will be followed in cases of academic misconduct -- "Each instructor shall report to the Committee on Academic Misconduct all instances of what he or she believes may be academic misconduct."
I. Introduction
*Krugman, Paul. "The Rise Fall and Rise of Development Economics," in Development, Geography and Economic Theory. Cambridge, Mass.: MIT Press, 1995, pp. 1-29.
*Krugman, Paul. "Geography Lost and Found," Chapter 2 in Development, Geography and Economic Theory. Cambridge, Mass.: MIT Press, 1995, pp. 31-65.
Richardson, Harry W. "Regions and Nations Compared." Regional Economics. Urbana, Illinois: University of Illinois Press, 1979, pp. 25-29.
Robert J. Barro and Xavier Sala-i-Martin. "A Brief History of Modern Growth Theory," in Economic Growth. New York: McGraw-Hill, 1995, pp. 9-13.
*Bartik, Timothy J. "Boon or Boondoggle? The Debate Over State and Local Economic Development Policies," in Who Benefits from State and Local Economic Development Policies? Kalamazoo, Michigan: W.E. Upjohn Institute for Employment Research, 1991, pp. 1-16.
*Kusmin, Lorin D. "Factors Associated with The Growth of Local and Regional Economies: A Review of Selected Empirical Literature". Agriculture and Rural Economy Division, Economic Research Service, U.S. Department of Agriculture, Staff Report No. AGES 9405, 1994.
II. Nonspatial Theories of Regional Growth
A. Export Base Theory and Extensions
*Richardson, Harry W. "Export Base Models," in Regional Economic Growth Theory. London: MacMillan, 1973, pp. 16-22.
Krikelas, Andrew C. "Why Regions Grow: A Review of Research on the Economic Base Model." Economic Review, Federal Reserve Bank of Atlanta, July/August, 1992, pp. 16-29.
*North, Douglas C. "Location Theory and Regional Economic Growth." Journal of Political Economy, Vol. 63, No. 3, 1955, pp. 243-258.
*Tiebout, Charles M. "Exports and Regional Economic Growth." Journal of Political Economy, Vol. 64, No. 2, 1956, pp. 160-168. Includes "Discussion" by Douglas C. North.
Kraybill, David S. and Jeffrey H. Dorfman. "A Dynamic Intersectoral Model of Regional Growth." Journal of Regional Science. Vol. 32, No. 1, 1992, pp. 1-17
Conway, Richard S., Jr. "The Process of Regional Economic Growth: An Analysis with an Interindustry Econometric Model." Paper presented at annual meeting of Regional Science Association International, Cincinnati, Ohio, 1995.
B. Neoclassical Theory and Extensions
*Richardson, Harry W. "Neoclassical Models." Regional Growth Theory. London, MacMillan, 1973, pp. 22-29.
*Borts, George H. "The Equalization of Returns and Regional Economic Growth." American Economic Review, Vol. 50, 1960, pp. 319-347.
Borts, George H. "Growth and Capital Movements Among United States Regions in the Postwar Period," in Essays in Regional Economics, edited by John F. Kain and John R. Meyer. Cambridge, Mass.: Harvard University Press, 1971, pp. 189-217.
Lande, Paul S. and Peter Gordon. "Regional Growth in the United States: A Re-examination of the Neoclassical Model." Journal of Regional Science, Vol. 17, No. 1, 1977, pp. 61-69.
*Robert J. Barro and Xavier Sala-i-Martin. "Growth Models with Exogenous Savings Rates (The Solow-Swan Model)," in Economic Growth. New York: McGraw-Hill, 1995, pp. 14-38.
Robert J. Barro and Xavier Sala-i-Martin. "Empirical Analysis of Regional Data Sets," in Economic Growth. New York: McGraw-Hill, 1995, pp. 382-393, 401-404, 410-413.
*Bishop, John A., John P. Formby, and Paul D. Thistle. "Convergence and Divergence of Regional Income Distributions and Welfare." Review of Economics and Statistics, Vol. 76, No. 1, 1994, pp. 228-235.
III. Spatial Theories of Regional Growth
A. Growth Pole Theory
*Perroux Francois. "The Pole of Development's New Place in a General Theory of Economic Activity." In Regional Economic Development, eds. Benjamin Higgins and Donald J. Savoie, Boston, Unwin Hyman, 1988, pp. 48-76.
B. Agglomeration Economies
*Blair, John P. "Agglomeration Economies." Local Economic Development: Analysis and Practice. Thousand Oaks: Sage Publications, 1995, pp. 95-104.
*Krugman, Paul. "Center and Periphery," in Geography and Trade. Cambridge, Mass.: MIT Press, 1991, pp. 1-34.
*Krugman, Paul. "Localization," in Geography and Trade. Cambridge, Mass.: MIT Press, 1991, pp. 35-67.
Rotemberg and Garth Saloner. "Competition and Human Capital Accumulation: A Theory of Interregional Specialization and Trade." Working Paper No. 3228, National Bureau of Economic Research, 1990.
Helsey, Robert W. and William C. Strange. "Agglomeration Economies and Urban Capital Markets." Journal of Urban Economics, Vol. 29, 1991, pp. 96-112.
Selting, Anne, Christopher Allanach, and Scott Loveridge. "The Role of Agglomeration Economies in Firm Location: A Review of the Literature." Staff Paper P94-14, Department of Agricultural and Applied Economics, University of Minnesota, 1994.
C. Central Place Theory
*Blair, John P. "Market Areas and Economic Development Strategies." Local Economic Development: Analysis and Practice. Thousand Oaks: Sage Publications, 1995, pp. 66-94.
D. Cumulative Causation Theory
*Richardson, Harry W. "Cumulative Causation Models." Regional Growth Theory. London, MacMillan, 1973, pp. 29-34.
Kaldor, Nicholas. "Equilibrium Theory and Growth Theory," in Economics and Human Welfare: Essays in Honor of Tibor Scitovsky. New York: Academic Press, 1979, pp. 273-291.
*Kaldor, Nicholas. "The Case for Regional Policies." Scottish Journal of Political Economy, November, 1970, pp. 337-348.
*Dixon, R. and A.P. Thirlwall. "A Model of Regional Growth Rates Differences Along Kaldorian Lines." Oxford Economic Papers, Vol. 27, No. 2, 1975, pp. 201-214.
Chambers, Robert G. and Ramon E. Lopez. "Microeconomic Foundations of Mrydal's Circular Causation Theory." Mimeo, Department of Agricultural and Resource Economics, University of Maryland, 1987.
E. Increasing Returns and Endogenous Growth Theories
*Robert J. Barro and Xavier Sala-i-Martin. "Models of Endogenous Growth," in Economic Growth. New York: McGraw-Hill, 1995, pp. 38-42.
*Tallman, Ellis W. and Ping Wang. "Human Capital Investment and Economic Growth: New Routes in Theory Address Old Questions." Economic Review, Federal Reserve Bank of Atlanta, Vol. 77, No. 5, 1992, pp. 1-12.
*Romer, Paul M., Gene R. Grossman and Elhanan Helpman, Robert M. Solow, and Howard Pack. Symposium on "New Growth Theory." Journal of Economic Perspectives, Vol. 8, No. 1, 1994, pp. 3-72.
Kilpatrick, Henry E., Jr., Roger R. Stough, and Kingsley E. Haynes. "Dynamic Increasing Returns and Economic Growth: Issues and Considerations." Paper presented at annual meeting of Regional Science Association International, Cincinnati, Ohio, 1995.
Krugman, Paul. "Increasing Returns and Economic Geography." Journal of Political Economy, Vol. 99, 1991, pp. 483-99.
*Krugman, Paul. "Appendix" in Development, Geography and Economic Theory. Cambridge, Mass.: MIT Press, 1995, pp. 89-108.
Lucas, Robert E. "On the Mechanics of Economic Development." Journal of Monetary Economics, Vol. 22, 1988, pp. 3-42.
*Hulten, Charles R. and Robert M. Schwab. "Endogenous Growth, Public Capital, and the Convergence of Regional Manufacturing Growth." National Bureau of Economic Research, Working Paper No. 4538, 1993.
Barro, Robert J. and Xavier Sala-i-Martin. "Public Finance in Models of Economic Growth." Review of Economic Studies, Vol. 59, No. 4, 1992, pp. 645-661.
IV. Institutional and Neo-institutional Approaches
A. Organizations and Credible Commitment
*North, Douglas. "Institutions and Credible Commitment." Journal of Institutional and Theoretical Economics, Vol. 149, No. 1, 1993, pp. 11-23.
*Kraybill, David S. and Bruce A. Weber. "Institutional Change and Economic Development in Rural America." American Journal of Agricultural Economics, Vol. 77, No. 4, 1995, forthcoming.
Wood, A. "Organizing for Local Economic Development: Local Economic Development Networks and Prospecting for Industry." Environment and Planning A, Vol. 25, No. 11, 1993, pp. 1649-1661.
Francis Fukuyama. "The Idea of Trust: The Improbable Power of Culture in the Making of Economic Society," in Trust: The Social Virtues and the Creation of Prosperity. New York: The Free Press, 1995, pp. 1-67.
*Hansen, Niles. "Competition, Trust, and Reciprocity in the Development of Innovative Regional Mileux." Papers in Regional Science, Vol. 76, No. 2, 1992, pp. 95-105.
*Coffey, William J. and Mario Polese. "The Concept of Local Development: A Stages Model of Endogenous Regional Growth." Paper of the Regional Science Association, Vol. 55, 1984, pp. 1-12.
B. Incentives and Contracts
*Bardhan, Pranab. "The New Institutional Economics and Development Theory." In Gerald M. Meier, Leading Issues in Economic Development. Oxford: Oxford University Press, 1995, pp. 103-106.
V. The Public Sector as a Factor in Regional Growth
A. Criteria for Government Intervention
Scitovsky, T. "Two Concepts of External Economies." Journal of Political Economy, Vol. 62, 1954, pp. 143-151.
Boadway, Robin W. and David E. Wildasin. "Market Failure and the Rationale for Government Intervention," in Public Sector Economics. Boston: Little, Brown, and Company, 1984, pp. 55-73.
*Bartik, T.J. "The Market Failure Approach to Regional Economic Development." Economic Development Quarterly, Vol. 4, No. 4, 1990, pp. 361-370.
*Stiglitz, Joseph E. "Markets, Market Failures, and Development." American Economic Review, Vol. 79, No. 2, 1989, pp. 197-203.
Bromley, Daniel W. "Rural Development for Whom: A Market Failure Approach." Staff Paper Series 51, Department of Agricultural Economics, University of Wisconsin, 1972.
*Bartik, Timothy J. "Jobs, Productivity, and Local Economic Development: What Implications Does Economic Research Have for the Role of Government?" National Tax Journal, Vol. 47, No. 4, 1994.
Haveman, Robert. "Evaluating Public Expenditures under Conditions of Unemployment," in Public Expenditures and Policy Analysis, 3rd edition, edited by Haveman and Margolis. Boston: Houghton Mifflin, 1983, Chapter 9.
B. Taxes and Tax Abatements
*Phillips, Joseph M. and Ernest P. Goss. "The Effects of State and Local Taxes on Economic Development: A Meta-Analysis." Southern Economic Journal, Vol. 62, No. 2, October, 1995.
Baum, Donald N. "The Economic Effects of State and Local Business Incentives." Land Economics, Vol. 63, No. 4, 1987, pp. 348-360.
Oechssler, Jörg. "The City vs. Firm Subsidy Game." Regional Science and Urban Economics, Vol. 24, 1994, pp. 391-407.
*Papke, Leslie E. "Tax Policy and Urban Development: Evidence from the Indiana Enterprise Zone Program." Journal of Public Economics, Vol. 54, 1994, pp. 37-49.
Rufolo, Anthony M. and J. O'Shea Gumusoglu. "Literature Review of Business Development Tax Incentives." Mimeo, 1995, Oregon Department of Economic Development.
C. Public Infrastructure and Services
Andrews, Kim and James Swanson. "Does Public Infrastructure Affect Regional Performance?" Growth and Change, Vol. 26, No. 2, 1995, pp. 204-216.
Dalenberg, Douglas, Mark Partridge, and Dan S. Rickman. "Public Infrastructure: Pork or Jobs Creator?" Paper presented at annual meeting of Southern Regional Science Association, San Antonio, Texas, 1995.
*Crihfield, John B. and Martin P.H. Panggabean. "Is Public Infrastructure Productive? A Metropolitan Perspective Using New Capital Stock Estimates." Regional Science and Urban Economics, Vol. 25, 1995, pp. 607-630.
*Evans, Paul and Georgios Karras. "Are Government Activities Productive? Evidence from a Panel of U.S. States." Review of Economics and Statistics, Vol. 76, No. 1, 1994, pp. 1-11.
D. Intergovernmental Competition
*Richardson, Harry W. "Competitive Versus Generative Growth." Regional Growth Theory, London, MacMillan, 1973, pp. 86-88.
*Oates, Wallace E. and Robert M. Schwab. "Economic Competition Among Jurisdictions: Efficiency Enhancing or Distortion Inducing?" Journal of Public Economics, Vol. 35, 1988, pp. 333-354.
*Bartik, Timothy J. "Is State and Local Economic Development Policy a Zero-Sum Game?" in Who Benefits from State and Local Economic Development Policies? Kalamazoo, Michigan: W.E. Upjohn Institute for Employment Research, 1991, pp. 187-204.
VI. Labor Supply and Population as Factors in Regional Growth
A. Amenities
*Gottlieb, Paul D. "Amenities as an Economic Development Tool: Is There Enough Evidence?" Economic Development Quarterly, Vol. 8, No. 3, 1994, pp. 270-285.
Garofalo, Gasper A. and Devinder M. Malhotra. "Effect of Environmental Regulations on State-Level Manufacturing Capital Formation." Journal of Regional Science, Vol. 35, No. 2, 1995, pp. 201-216.
*Bolton, Roger. " 'Place Prosperity versus People Prosperity' Revisited: An Old Issue with a New Angle." Urban Studies, Vol. 29, No. 2, 1992, pp. 185-203.
B. Education
*Killian, Molly S. and Timothy S. Parker. "Education and Local Employment Growth in a Changing Economy." Education and Rural Economic Development: Strategies for the 1990s. Agriculture and Rural Economy Division, Economic Research Service, U.S. Department of Agriculture. ERS Staff Report No. AGES 9153, 1991, pp. 91-121.
Swaim and Ruy A. Texeira. "Education and Training Policy: Skill Upgrading Options for the Rural Workforce." Education and Rural Economic Development: Strategies for the 1990s. Agriculture and Rural Economy Division, Economic Research Service, U.S. Department of Agriculture. ERS Staff Report No. AGES 9153, 1991, pp. 122-162.
Kraybill, David S., Michael J. Yoder, and Kevin T. McNamara. "Employer Size, Human Capital, and Rural Wages: Implications for Southern Rural Development." Southern Journal of Agricultural Economics, Vol. 23, No. 2, 1991, pp. 85-94.
C. Migration
Greenwood, Michael J. and Gary L Hunt. "Migration and Employment Change: Empirical Evidence on the Spatial and Temporal Dimensions of the Linkage." Journal of Regional Science 26(1986): 223-234.
*Greenwood, Michael J., Gary L. Hunt, Dan S. Rickman, and George I. Treyz. "Migration, Regional Equilibrium, and the Estimation of Compensating Differentials." American Economic Review, Vol. 81, 1991, pp. 1382-1390.
*Blanchard, Olivier J. and Lawrence Katz. "Regional Evolutions." Brookings Papers on Economic Activity, 1, 1992, pp. 1-75.
VII. Growth of Rural Regions
Economic Research Service, "Understanding Rural America." United States Department of Agriculture, Agriculture Information Bulletin No. 710, 1995.
Fuguitt, Glenn V. "Population Change in Nonmetropolitan America," in The Changing American Countryside: Rural People and Places, edited by Emery N. Castle. Lawrence, Kansas: University of Kansas Press, 1995, pp. 77-100.
Goetz, Stephan J. and David L. Debertin. "Rural Population Decline in the 1980s: Impacts of Farm Structure and Federal Farm Programs." American Journal of Agricultural Economics, Vol. 78, No. 3, 1996, pp. 517-529.
*Weber, Bruce A. "Extractive Industries and Rural-Urban Economic Interdependence," in The Changing American Countryside: Rural People and Places, edited by Emery N. Castle. Lawrence, Kansas: University of Kansas Press, 1995, pp. 155-179.
*Drabenstott, Mark and Tim R. Smith. "Finding Rural Success: The New Rural Economic Landscape and its Implications," in The Changing American Countryside: Rural People and Places, edited by Emery N. Castle. Lawrence, Kansas: University of Kansas Press, 1995, pp. 180-196.
*Kilkenny, Maureen. "Transport Costs and Rural Development." Working Paper 95-WP 133, Center for Agricultural and Rural Development, Iowa State University, 1995.
Webb, Darin, Mellie L. Warner, James C. Hite, and William A. Ward. "Asset Fixity, Space, and Rural Development: An Empirical Test and Implications." Paper presented an annual meeting of the American Agricultural Economics Association, Indianapolis, Indiana, 1995.
*Hansen, Niles. "Factories in Danish Fields: How High-Wage, Flexible Production Has Succeeded in Peripheral Jutland." International Regional Science Review, Vol. 14, No. 2, 1991, pp. 109-32.
*Rephann, Terance J. and Andrew M. Isserman. "Highways and Rural Economic Development: Evidence from Quasi-Experimental Studies." Research Paper 9312, Regional Research Institute, West Virginia University, 1993.
Howland, Marie. "Applying Theory to Practice in Rural Economies," Chapter 3 in Theories of Local Economic Development, edited by Richard D. Bingham and Robert Meier.
Reeder, Richard J. Rural Enterprise Zones In Theory and Practice: An Assessment of Their Development Potential. Agriculture and Rural Economy Division, Economic Research Service, U.S. Department of Agriculture, Staff Report No. AGES 9905, 1993.
VIII. Evaluation of Regional Policy
*Bartik, Timothy J. "Better Evaluation Is Needed for Economic Development Programs to Thrive." Economic Development Quarterly, Vol. 8, No. 2, 1994, pp. 99-106.
*Bartik, Timothy J. "Can State and Local Policies Affect Economic Development," in Who Benefits from State and Local Economic Development Policies? Kalamazoo, Michigan: W.E. Upjohn Institute for Employment Research, 1991, pp. 17-63.
*Courant, Paul N, "How Would You Know a Good Economic Development Policy If You Tripped Over One? Hint: Don't Just Count Jobs." National Tax Journal, Vol. 47, No. 4, 1994.
*Richardson, Harry. "A Review of Techniques for Regional Policy Analysis." In Regional Economic Development, eds. Benjamin Higgins and Donald J. Savoie, Boston, Unwin Hyman, 1988, pp. 142-168.
Hamilton, Joel R., Norman K. Whittlesey, M. Henry Robison, and John Ellis. "Economic Impacts, Value Added, and Benefits in Regional Project Analysis." American Journal of Agricultural Economics, Vol. 73, No. 2, 1991, pp. 334-344.
Mansoorian, Arman and Gordon M. Myers. "Comparing Government Objectives for Economies with Mobile Populations." Mimeo, Department of Economics, York University, 1993.
Borts, George H. "Criteria for the Evaluation of Regional Development Programs," in Regional Accounts for Policy Decisions, edited by Werner Z. Hirsch. Baltimore: Johns Hopkins University Press, 1966.
Boadway, Robin and Frank Flatters. "The Efficiency Basis for Regional Employment Policy." Canadian Journal of Economics, Vol. 14, No. 1, 1981, pp. 58-77.
Isserman, Andrew M. and John Merrifield. "The Use of Control Group in Evaluating Regional Economic Policy." Regional Science and Urban Economics, Vol. 12, 1982, pp. 43-58.
Hatry, Harry P., Mark Fall, Thomas O. Singer, and E. Blaine Liner. Monitoring the Outcomes of Economic Development Programs: A Manual. Washington, D.C.: The Urban Institute, 1990.
IX. Conclusion
*Krugman, Paul. "Models and Metaphors," in Development, Geography and Economic Theory. Cambridge, Mass.: MIT Press, 1995, pp. 67-88.