Steven C. Deller

Rethinking Community Economic Development

In this article, the authors present arguments for a more interdisciplinary approach to community economic development. Building an alternative paradigm that includes six elements—resources, markets, institutions, society, decision making, and space—they rethink the framework that links economic theory to the practice of community economic development. Major attention is paid to the integration of economic and noneconomic factors in the practice of community economic development. In the end, the goal of this new paradigm is to more directly link the practice of community economic development to its solid interdisciplinary theoretical foundation.

PUBLIC INFRASTRUCTURE IN ECONOMIC DEVELOPMENT AND GROWTH: EVIDENCE FROM RURAL MANUFACTURERS

The role of public infrastructure in economic development and growth is examined and reported here. Specific attention is paid to the importance of infrastructure to small rural manufacturing firms in upper New England and Wisconsin. Study results suggest that while infrastructure is important to small manufacturing firms, other community attributes such as overall community attitudes toward change and the underlying forces of firm start-ups are more important. While adequate investments in infrastructure may be necessary for economic development and growth, it is not sufficient.

Amenities and Rural Appalachia Economic Growth

Patterns of economic growth in rural Appalachia are examined with a focus on natural and built amenities. While the literature is clear that rural areas endowed with scenic beauty, lakes, forests, and wildlife, among other natural amenities, and coupled with built amenities such as golf courses, are experiencing robust economic growth. It is not clear if these patterns extend to rural Appalachia. In this applied research study we use data for rural U. S. counties. We estimate an augmented Carlino-Mills growth model with specific attention to growth patterns of Appalachia. We also build on the empirical modeling by adopting a Bayesian Modeling Average (BMA) approach to address the problem of model specification. We find that while there are some commonalities across the whole of the United States, the country is sufficiently heterogeneous that impact of amenities or other policy variables may be significantly different depending on where one is within the country. Our results suggest that while non-metropolitan Appalachia tends to follow national trends, there are sufficient differences that warrant special attention.

Rethinking Highway Effects on Population Change

Little systematic work has been undertaken to explain highway impacts on population change. In this study, the authors review the literature in regional economics and demographics in an attempt to shed light on the mechanisms by which investments in highway infrastructure influence population change. First, they categorize the indirect causal paths by which highways influence population change at the county and municipal levels. Then they propose a spatio-temporal approach to revisit highway effects on population change from the stage of highway development and areal characteristics specifically. Finally, it is concluded that at the county and municipal levels, the effect of highways on population change varies from preconstruction to postconstruction periods and across urban, suburban, and rural areas.

Microenterprises and economic growth: a panel study of the US states 1977–1997

In this study, we examine the role of microenterprises in US economic growth. Using a panel of the 48 lower US states from 1977 to 1997, we estimate an expanded Carlino–Mills type model of growth. Microenterprises are defined as having between one and four employees. Results suggest that a higher share of goods producing firms that are microenterprises tend to be associated with lower levels of population, employment and income growth, while a higher share of service producing firms classified as micro are associated with higher levels of growth. These results suggest that care must be taken when promoting microenterprises as a major engine of economic growth.

Recreational housing and local government finance.

Abstract One of the important aspects of community development planning for tourism involves the assessment of benefits and costs associated with touristic activities to local units of government. The primary objective of this study was to identify the impact of recreational housing development on the financial position of local governments within a rural setting. Using census data for Wisconsin counties, a “holistic” type model of fiscal impact is specified and estimated. Results suggest that recreational housing development just pays for itself in terms of the ability of local governments to generate revenues when compared to the demands placed on services, as measured by expenditures.

Tax and Expenditure Limitations and State Credit Ratings

The impact of state tax and expenditure limitations (TELs) on bond credit ratings is estimated using an incomplete (or unbalanced) panel from the US states from 1973 to 2005. Three indices of the restrictiveness of TELs are used. Both Moody’s and Standard and Poor’s bond credit ratings are used and the outcomes compared. The results are consistent with previous work; more restrictive revenue TELs are associated with lower credit ratings while expenditure TELs are generally associated with higher credit ratings. TELs restricting both revenues and expenditures are negatively associated with Moody’ ratings, but not with those of Standard and Poor’s. Contrary to previous studies, the authors find limited differences in the fiscal and economic variables that influence the ratings of the two agencies.

Comparing the Impacts of Retiree versus Working-Age Families on a Small Rural Region: An Application of the Wisconsin Economic Impact Modeling System

The Wisconsin Economic Impact Modeling System, a conjoined input-output/econometric model of Wisconsin counties, is used to simulate the economic and fiscal impact of two alternative residential development patterns. Under the first scenario, the impact of migrating retirees on a small tri-county region in northern Wisconsin is examined. Under the second scenario, the impact of the migration of younger families with children is examined. A comparison-contrast between the two scenarios demonstrates that the characteristics of the migrating household can have a significant impact on the nature of the impacts.

Public-Private Partnerships and Cooperative Agreements in Municipal Service Delivery

Abstract This study uses quantitative and qualitative survey data on the use of public-private partnership in provision and production of public services by municipalities in predominantly rural New Hampshire (USA). Descriptive analysis suggests that town officials are less satisfied with the quality of privatized services, suggesting that privatization involves some tradeoff between costs and quality. These results differ from the experiences of large metropolitan areas and suggest that conclusions of previous research do not necessarily generalize to the challenges faced by small rural communities. Statistical analysis confirms that available fiscal health, geography, and voting patterns are linked to privatization decisions.

The Measurement of a Community's Retail Market

Methods of assessing the market population serviced by a communitys retail sector are described and empirically compared. The more popular method derived from Reillys Law is used to compute market populations for fifty-seven Maine communities. The method of trade area analysis is also used to estimate market populations for the same communities. The results suggest that, on average, the two methods of determining market population are statistically equivalent. Reillys method, however, computed larger market populations for smaller communities than did the trade area analysis method.