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What Causes Spatial Variations in Economic Development in the United States?

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  • JunJie Wu
  • Munisamy Gopinath

Abstract

This article examines the causes of spatial disparities in economic development in the United States. A theoretical model is developed to analyze the location decisions of firms and households. An empirical model is estimated to quantify the contribution of alternative factors to spatial variations in wage, employment density, housing price, and land development density. Results suggest that remoteness is a primary cause of spatial disparities in economic development, while natural amenities are a major determinant of housing prices. Despite the dominant role of geography, public investments in infrastructure and human capital development could contribute to economic development in remote areas. Copyright 2008, Oxford University Press.

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File URL: http://hdl.handle.net/10.1111/j.1467-8276.2007.01126.x
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Bibliographic Info

Article provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 90 (2008)
Issue (Month): 2 ()
Pages: 392-408

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Handle: RePEc:oup:ajagec:v:90:y:2008:i:2:p:392-408

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Cited by:
  1. Michael Iacono & David Levinson, 2012. "Rural Highway Expansion and Economic Development: Impacts on Private Earnings and Employment," Working Papers 000101, University of Minnesota: Nexus Research Group.
  2. Maureen Kilkenny, 2010. "Urban/Regional Economics And Rural Development," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 449-470.
  3. Brown, Jason, 2014. "Production of natural gas from shale in local economies: a resource blessing or curse?," Economic Review, Federal Reserve Bank of Kansas City, issue Q I, pages 1-29.
  4. Daniel C. Monchuk & Dermot J. Hayes & John Miranowski, 2008. "Inference Based on Alternative Bootstrapping Methods in Spatial Models with an Application to County Income Growth in the United States," Center for Agricultural and Rural Development (CARD) Publications 08-wp471, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  5. Gordon Mulligan & Mark Partridge & John Carruthers, 2012. "Central place theory and its reemergence in regional science," The Annals of Regional Science, Springer, vol. 48(2), pages 405-431, April.
  6. Berdegué, J. & Jara, B. & Modrego, F., 2012. "Ciudades, territorios y crecimiento inclusivo en Chile," Working papers 103, Rimisp Latin American Center for Rural Development.
  7. Partridge, Mark D. & Rickman, Dan S., 2012. "Integrating regional economic development analysis and land use economics," MPRA Paper 38291, University Library of Munich, Germany.
  8. Waltert, Fabian & Schläpfer, Felix, 2010. "Landscape amenities and local development: A review of migration, regional economic and hedonic pricing studies," Ecological Economics, Elsevier, vol. 70(2), pages 141-152, December.
  9. Arthur Grimes & Sean Hyland, 2013. "Passing the Buck: Impacts of Commodity Price Shocks on Local Outcomes," Working Papers 13_10, Motu Economic and Public Policy Research.
  10. Brown, Jason P. & Pender, John & Wiser, Ryan & Lantz, Eric & Hoen, Ben, 2012. "Ex post analysis of economic impacts from wind power development in U.S. counties," Energy Economics, Elsevier, vol. 34(6), pages 1743-1754.
  11. Michael, Davidsson & Dan S., Rickman, 2012. "U.S. Micropolitan Area Growth: A Spatial Equilibrium Growth Analysis," MPRA Paper 40394, University Library of Munich, Germany.
  12. Elena G. Irwin & Andrew M. Isserman & Maureen Kilkenny & Mark D. Partridge, 2010. "A Century of Research on Rural Development and Regional Issues," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(2), pages 522-553.
  13. Guangqing Chi & David Marcouiller, 2013. "Natural amenities and their effects on migration along the urban–rural continuum," The Annals of Regional Science, Springer, vol. 50(3), pages 861-883, June.
  14. Berdegué, J. & Carriazo, F. & Jara, B. & Modrego, F. & Soloaga, I., 2012. "Ciudades, territorios y crecimiento inclusivo en Latinoamérica: Los casos de Chile, Colombia y México," Working papers 118, Rimisp Latin American Center for Rural Development.

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