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Halting the Rural Race to the Bottom: An Evolutionary Model of Rural Development to Analyse Neo-endogenous Policies in the EU

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  • Petrick, Martin

Abstract

The article contributes to the understanding of neo-endogenous rural development policies from the perspective of evolutionary game theory. Rural development is modelled as the increasing realisation over time of gains from interaction by rural stakeholders. The model exhibits two dynamically stable equilibria, which depict declining and prospering regions. Neo-endogenous policies are interpreted as stimuli emerging from an external government authority which help decentralised actors to coordinate on the superior of the two equilibria. External intervention may thus be possible and desirable without giving up the autonomy of local decision makers. However, because initial conditions matter, outcomes cannot be planned or engineered from the outside.

Suggested Citation

  • Petrick, Martin, 2011. "Halting the Rural Race to the Bottom: An Evolutionary Model of Rural Development to Analyse Neo-endogenous Policies in the EU," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114764, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae11:114764
    DOI: 10.22004/ag.econ.114764
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    References listed on IDEAS

    as
    1. Magrini, Stefano, 2004. "Regional (di)convergence," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 62, pages 2741-2796, Elsevier.
    2. P. Mueller, 2006. "Entrepreneurship in the Region: Breeding Ground for Nascent Entrepreneurs?," Small Business Economics, Springer, vol. 27(1), pages 41-58, August.
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    More about this item

    Keywords

    Community/Rural/Urban Development;

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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