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Sample Selection in Appalachian Research

Author

Listed:
  • Douglas, Stratford M.

    (West Virginia University)

  • Walker, Anne

    (West Virginia University)

Abstract

The Appalachian Regional Commission’s definition of the Appalachian region is the one used most often by researchers, politicians, and the popular press. The uncritical use of this definition of Appalachia raises issues of both selection bias and excess heterogeneity in regression analysis of Appalachian income and growth. The ARC was created as part of President Johnson’s war on poverty, and the geographical extent of its purview has been driven by politics and by the geography of poverty, neither of which is exogenous. It is well known that the use of endogenous variables to choose a sample creates bias and inconsistency in estimation of regression coefficients. To identify the counties that belong to the Appalachian region exogenously we use an algorithm based on three criteria: topography, contiguity, and prevalence of slavery in the 1860 census. We apply our sample to growth regressions using data from 1970 to 2008, addressing the question of the existence of a resource curse from coal extraction. For this model we find strong evidence of excess heterogeneity, but not bias.

Suggested Citation

  • Douglas, Stratford M. & Walker, Anne, 2012. "Sample Selection in Appalachian Research," The Review of Regional Studies, Southern Regional Science Association, vol. 42(2), pages 143-159, Summer.
  • Handle: RePEc:rre:publsh:v:42:y:2012:i:2:p:143-159
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    References listed on IDEAS

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    1. Francesco Caselli & Guy Michaels, 2013. "Do Oil Windfalls Improve Living Standards? Evidence from Brazil," American Economic Journal: Applied Economics, American Economic Association, vol. 5(1), pages 208-238, January.
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    3. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    4. Guy Michaels, 2011. "The Long Term Consequences of Resource‐Based Specialisation," Economic Journal, Royal Economic Society, vol. 121(551), pages 31-57, March.
    5. B. James Deaton & Ekaterina Niman, 2012. "An empirical examination of the relationship between mining employment and poverty in the Appalachian region," Applied Economics, Taylor & Francis Journals, vol. 44(3), pages 303-312, January.
    6. Mark D. Partridge & Michael R. Betz & Linda Lobao, 2013. "Natural Resource Curse and Poverty in Appalachian America," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(2), pages 449-456.
    7. James, Alex & Aadland, David, 2011. "The curse of natural resources: An empirical investigation of U.S. counties," Resource and Energy Economics, Elsevier, vol. 33(2), pages 440-453, May.
    8. Higgins, Matthew J. & Levy, Daniel & Young, Andrew T., 2006. "Growth and Convergence across the United States: Evidence from County-Level Data," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 88(4), pages 671-681.
    9. Edward B. Barbier, 2005. "Natural Resource-Based Economic Development in History," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 6(3), pages 103-152, July.
    10. Papyrakis, Elissaios & Gerlagh, Reyer, 2007. "Resource abundance and economic growth in the United States," European Economic Review, Elsevier, vol. 51(4), pages 1011-1039, May.
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    Cited by:

    1. Munasib, Abdul & Rickman, Dan S., 2015. "Regional economic impacts of the shale gas and tight oil boom: A synthetic control analysis," Regional Science and Urban Economics, Elsevier, vol. 50(C), pages 1-17.
    2. Betz, Michael R. & Partridge, Mark D. & Farren, Michael & Lobao, Linda, 2015. "Coal mining, economic development, and the natural resources curse," Energy Economics, Elsevier, vol. 50(C), pages 105-116.
    3. Eric Bowen & Christiadi & John Deskins & Brian Lego, 2018. "An Overview of the Coal Economy in Appalachia," Working Papers Research Paper 2018-02, Regional Research Institute, West Virginia University.

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    More about this item

    Keywords

    sample selection; regionas; resource curse;
    All these keywords.

    JEL classification:

    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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