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Moving Beyond the Modeling of Regional Economic Growth: A Study of How Income is Distributed to Rural Households

Author

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  • John C. Leatherman

    (Kansas State University)

  • David W. Marcouiller

    (University of Wisconsin-Madison)

Abstract

This article discusses the use of regional economic modeling techniques to determine the household income distribution impacts associated with various economic sectors. Determining the distributional characteristics of economic sectors requires identifying the relationship between aggregate factor income change and its distribution to local households. Social accounting matrix analysis provides an analytic framework to track the flow of income from local productive activities to households differentiated by income category. Its use is illustrated with an analysis of alternative economic development strategies for a rural region. To the extent that local economic develop ment policy can differentially influence the level of local productive activity, it becomes possible to assess who benefits by economic growth. Incorporating information related to income distribution allows local policy makers to move beyond the pursuit of aggregate economic growth to incorporate additional objectives that are important to overall regional development.

Suggested Citation

  • John C. Leatherman & David W. Marcouiller, 1999. "Moving Beyond the Modeling of Regional Economic Growth: A Study of How Income is Distributed to Rural Households," Economic Development Quarterly, , vol. 13(1), pages 38-45, February.
    • Handle: RePEc:sae:ecdequ:v:13:y:1999:i:1:p:38-45
    DOI: 10.1177/089124249901300106
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    References listed on IDEAS

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    Cited by:

    1. Natalia Porto & Natalia Espinola, 2019. "Labor income inequalities and tourism development in Argentina: A regional approach," Tourism Economics, , vol. 25(8), pages 1265-1285, December.
    2. repec:rre:publsh:v:37:y:2007:i:2:p:186-206 is not listed on IDEAS
    3. Paul A. Lewin & Bruce A. Weber, 2020. "Distributional impacts of food assistance: How SNAP payments to the rural poor affect incomes in the urban core," Papers in Regional Science, Wiley Blackwell, vol. 99(5), pages 1281-1300, October.
    4. David W. Marcouiller & Xianli Xia, 2008. "Distribution of Income from Tourism-Sensitive Employment," Tourism Economics, , vol. 14(3), pages 545-565, September.
    5. J. C. Dissart, 2003. "Regional Economic Diversity and Regional Economic Stability: Research Results and Agenda," International Regional Science Review, , vol. 26(4), pages 423-446, October.
    6. Laura A. Reese & David Fasenfest, 1999. "Critical Perspectives on Local Development Policy Evaluation," Economic Development Quarterly, , vol. 13(1), pages 3-7, February.
    7. Bowe, Scott A. & Marcouiller, David W., 2007. "Alternative tourism-timber dependencies and the development of forested rural regions," Forest Policy and Economics, Elsevier, vol. 9(6), pages 653-670, February.
    8. George W. Hammond & Eric C. Thompson, 2008. "Determinants of Income Growth in Metropolitan and Nonmetropolitan Labor Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(3), pages 783-793.
    9. Amanda L. Weinstein & Michael Hicks & Emily Wornell, 2023. "An aggregate approach to estimating quality of life in micropolitan areas," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 70(2), pages 447-476, April.
    10. G. Lindberg & P. Midmore & Y. Surry, 2012. "Agriculture’s Inter-industry Linkages, Aggregation Bias and Rural Policy Reforms," Journal of Agricultural Economics, Wiley Blackwell, vol. 63(3), pages 552-575, September.
    11. Marcouiller, David W., 2007. "“Boosting” Tourism as Rural Public Policy: Panacea or Pandora’s Box?," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 37(1), pages 1-4.

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