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Farm Prices, Energy Prices and Rural Income in the U.S

Author

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  • Mark Jelavich

    (Northwest Missouri State University)

Abstract

Central place theory and economic base theory are used to specify a model that describes rural personal income in the U.S. OLS regressions using annual 1969-2005 data show that rural income is significantly determined by metropolitan personal income and farm prices, as well as energy prices. The parity index performs slightly better than farm prices in describing rural income.

Suggested Citation

  • Mark Jelavich, 2010. "Farm Prices, Energy Prices and Rural Income in the U.S," Journal of Economic Insight (formerly the Journal of Economics (MVEA)), Missouri Valley Economic Association, vol. 36(1), pages 1-7.
  • Handle: RePEc:mve:journl:v:36:y:2010:i:1:p:1-7
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    More about this item

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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