THE IMPACT OF LOCAL LABOR MARKET CONDITIONS ON THE OFF-FARM EARNINGS OF FARM OPERATORS

Local labor market characteristics are theoretically relevant to the determination of off-farm earnings of farm operators, but the empirical analysis of these effects has been hindered by a lack of appropriate data. This study employs the new census public use micro-data sample, PUMS-D, to investigate the effect of local labor market characteristics on off-farm earnings of farm operators. The PUMS-D data allow local characteristics to be defined on a labor market area basis, rather than on a political boundary basis. For a sample of Georgia farm operators, local labor market size, unemployment rates, and industrial structure were found to have significant impacts on off-farm employment and earnings.Labor and Human Capital,

ON- AND OFF-FARM DIVERSIFICATION

The present paper brings together two strands of literature by analysing the interrelationship between on-farm and off-farm diversification econometrically. Estimation results from simultaneous bivariate probit models suggest that on-farm and off-farm diversification decisions are closely related. The degree of diversification is significantly lower for farms where the farm operator works off-the farm. On the other hand, the probability of entering into the off-farm labour market declines with the degree of diversification in farm production.Farm Management,

TAX INCENTIVES: AN EFFECTIVE DEVELOPMENT STRATEGY FOR RURAL COMMUNITIES?

As national and local economies become more globalized, many rural areas are going to find it more difficult to compete for private capital investments. A traditional tool, modifications to tax policy, of state and local governments will not be as effective (for many communities it has never been effective) in the future. These communities will need to seek other avenues of growth. However, for many rural communities even alternative avenues will not lead to enhanced economic opportunity.agglomeration, rural development, tax policy, Community/Rural/Urban Development, R51, R58, O21, O23, R11, R38,

Market Success of Premium Product Innovation: Empirical Evidence from the German Food Sector.

It is well documented that a large share of new products does not survive their first year in the market. Research reported in this paper examined the relationship between product quality and innovation success. In contrast to existing product innovation literature that focused on industrial goods, this study used food product data from a 2002 German food manufacturing firm survey. Results of Sample Selection Model suggest that premium quality increases product?s success rate. Furthermore, firm size has a significant positive impact on success rate. Intensity of competition as well as retailers? market power reduce product?s success rate. --Product success,innovative behaviour,premium product quality,sample selection,German food industry

EVOLUTION OF INVESTMENT FLOWS IN U.S. MANUFACTURING:A SPATIAL PANEL APPROACH

The paper starts with a discussion of a conceptual model of location factors in U.S. manufacturing investment at the state level. The purpose of the paper is to test the relative importance of growth factors influencing investment and whether or not they have changed in importance over time. These factors include agglomeration, market structure, labor, infrastructure, and fiscal policy. A better understanding of investment flows in the manufacturing sector will help determine how growth factors have changed over time and which economic development policies may be most appropriate at targeting the sector. The analysis covers the time period 1994 to 2006 for the 48 contiguous states, with data taken from the Annual Survey of Manufactures, the Bureau of Economic Analysis, and the Bureau of Labor Statistics. Panel methods are used to test for fixed effects due to heterogeneity across states. Spatial panel methods with time effects are used for determination and specification of spatial and temporal effects. Empirical results are consistent across the empirical models put forth. Results suggest that market demand remains one of the most important location factors of manufacturing investment. Investment also goes to states with more productive labor and localized agglomeration of manufacturing activity.manufacturing, investment, location factors

The Economic Impacts Associated with Locally Owned Agricultural Cooperatives: A Comparison of the Great Plains and the Eastern Cornbelt

Agribusiness,

QUASI-EXPERIMENTAL DESIGNS FOR MEASURING IMPACTS OF DEVELOPMENTAL HIGHWAYS IN RURAL AREAS

Quasi-experimental techniques were developed to provide decision-making tools for documenting the impacts of developmental highways in rural areas. Regression discontinuity analysis (RDA) with limited observations was used to compare economic changes in highway counties to those in adjacent and non-adjacent control counties. The RDA models found statistically significant changes in population, per capita income, and taxable sales related to highway development. The study found that some counties benefited from developmental highways, some were unchanged, while some experienced economic decline. RDA models with adjacent controls had better explanatory powers while those with non-adjacent controls were more sensitive to highway-related changes in economic activity. When significant non-highway activities were present, adjacent control models may have understated highway-related impacts, while non-adjacent control models may have overstated these impacts. Arguments for using adjacent and non-adjacent experimental designs are discussed.Community/Rural/Urban Development,

EMPLOYER SIZE, HUMAN CAPITAL, AND RURAL WAGES: IMPLICATIONS FOR SOUTHERN RURAL DEVELOPMENT

A recent trend in rural development policy emphasizes small business development in place of industrial recruitment. To analyze some of the likely effects of expanding the proportion of small firms in local economies, an empirical wage rate model incorporating employer size was developed, and parameters were estimated using household date from rural Putnam County, Georgia. The estimates indicated that large employers offered higher wages than small employers and that the wage premium they offered was greater for blacks than for whites. These results support Thomas Till's argument that southern rural counties with relatively large black populations should not abandon efforts to attract large employers. Other factors associated with higher wages included level of education, previous labor force experience, and employment in certain occupations and industries.Community/Rural/Urban Development, Labor and Human Capital,