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Reexamining Rural Decline: How Changing Rural Classifications Affect Perceived Growth

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  • Artz, Georgeanne
  • Orazem, Peter

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.

Suggested Citation

  • Artz, Georgeanne & Orazem, Peter, 2006. "Reexamining Rural Decline: How Changing Rural Classifications Affect Perceived Growth," ISU General Staff Papers 200601010800001119, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:200601010800001119
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    References listed on IDEAS

    as
    1. Robert J. Barro & Paul Romer, 1993. "Economic Growth (1992)," NBER Books, National Bureau of Economic Research, Inc, number barr93-1, March.
    2. Glenn Fuguitt & Tim Heaton & Daniel Lichter, 1988. "Monitoring the metropolitanization process," Demography, Springer;Population Association of America (PAA), vol. 25(1), pages 115-128, February.
    3. 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 1072-1085, December.
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    More about this item

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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