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Reexamining Rural Decline: How Changing Rural Classifications Affect Perceived Growth

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Author Info
Artz, Georgeanne M.
Orazem, Peter

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Abstract

This article illustrates the commonly overlooked sample selection problem inherent in using rural classification methods that change over time due to population changes. Since fast growing rural areas grow out of their rural status, using recent rural definitions excludes the most successful places from the analysis. Average economic performance of the areas remaining rural significantly understates true rural performance. We illustrate this problem using one rural classification system, rural-urban continuum codes. Choice of code vintage alters conclusions regarding the relative speed of rural and urban growth and can mislead researchers regarding magnitudes and signs of factors believed to influence growth.

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File URL: http://economy.okstate.edu/rrs/abstract.asp?article=76
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Publisher Info
Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 12224.

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Date of creation: 05 Jan 2005
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Publication status: Published in The Review of Regional Studies, Fall 2006, Vol. 36, No. 2, pp. 163-191.
Handle: RePEc:isu:genres:12224

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Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
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Web page: http://www.econ.iastate.edu
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Related research
Keywords: Beale codes; growth; urban; rural; sorting; reclassification; population; income; employment; wages;

Find related papers by JEL classification:
R0 - Urban, Rural, and Regional Economics - - General

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  1. Baumol, William J, 1986. "Productivity Growth, Convergence, and Welfare: What the Long-run Data Show," American Economic Review, American Economic Association, vol. 76(5), pages 1072-85, December. [Downloadable!] (restricted)
  2. Robert J. Barro & Paul Romer, 1993. "Economic Growth," NBER Books, National Bureau of Economic Research, Inc, number barr93-1.
    Other versions:
    • Robert J. Barro & Paul M. Romer, 1991. "Economic Growth," NBER Books, National Bureau of Economic Research, Inc, number barr91-1.
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