Share

NERCRD research cited in the 2019 Economic Report of the President

NERCRD research is being used at the highest level of Federal Government.
“We found your research to be insightful and critical to the completion of the 2019 Economic Report of the President.”
-- Kevin Hassett, Chairman
U.S. Council of Economic Advisers

The 2019 Economic Report of the President (pdf) cited three scientific papers written by NERCRD and collaborating researchers. One examines the economic conditions of Rural America during the current administration. The other two focus on the determinants of self-employment and its effects on the local economy.

The NERCRD conducts timely, policy-relevant research on issues facing Rural America. The range of years of papers cited (2009-2018) demonstrates that NERCRD research has short- and longer-term impacts. For more information on how the research was used in the report, please see the table below.

Papers cited:

The Northeast Regional Center for Rural Development is one of four USDA-funded Regional Development Centers, and receives core funds from the U.S. Department of Agriculture’s National Institute of Food and Agriculture (award #2018-51150-28696) as well as from Multistate/Regional Research and/or Extension Appropriations (project #NE1749), the Northeastern Regional Association of State Agricultural Experiment Station Directors, and the Pennsylvania State University, College of Agricultural Sciences.


 

The following shows how the Northeast Center’s research was used in the 2019 Economic Report of the President.

Excerpts from the Economic ReportMore about the cited research:

The report uses NERCRD research to explain that rural areas’ slower growth is in large part due to the reclassification of rural counties over time as metropolitan:
“Goetz, Partridge, and Stephens (2018) show that population growth in counties considered rural in 1950 is more than double that of counties considered urban in 1950. The supposedly slow historical population growth of rural areas results from the reclassification of fast-growing counties as urban…They note that one analyst likened this to taking the best team out of a sports league each year and then wondering why the remaining teams are not performing as well as before.”

Goetz, S., M. Partridge, and H. Stephens. 2018. “The Economic Status of Rural America in the President Trump Era and Beyond.” Applied Economic Perspectives and Policy 40, no. 1: 97–118.

Abstract: Rural America is often characterized as a uniformly distressed place where agriculture dominates. In fact, rural America is diverse, with many regions doing well economically. There is also evidence that homegrown enterprises can support growth even in the most remote, distressed regions. To support economic growth, policies should recognize the unique features of each place or region and balance the farm sector with the larger nonfarm rural economy.

The 2019 Report highlights the importance of entrepreneurship to rural areas:
“Rupasingha and Goetz (2013) provide strong empirical evidence that higher self-employment rates in rural counties are associated with increases in income and employment and with reductions in poverty rates….Goetz and Rupasingha (2009) found that greater self-employment growth was associated with higher shares of construction and services employment.”

Rupasingha, A., and S. Goetz. 2013. “Self-Employment and Local Economic Performance: Evidence from U.S. Counties.” Papers in Regional Science 92, no. 1: 141–62.

Abstract:  Our results indicate that higher self‐employment rates are associated with statistically significant increases over time in income and employment growth, and reductions in poverty rates in non‐metro counties

The report also examined policy impacts on entrepreneurship:
“Goetz and Rupasingha (2009) also used the Economic Freedom of North America Index to evaluate the effect of government policies on proprietorships. This index measured the extent of restrictions on economic freedom. Not surprisingly, more economic freedom is associated with higher rates of business formation.”

Goetz, S., and A. Rupasingha. 2009. “Determinants of Growth in Non-Farm Proprietor Densities in the U.S., 1990–2000.” Small Business Economics 32, no. 4: 425–38.

Abstract: The number of non-farm proprietorships in the US has expanded significantly in past decades, but this expansion has not occurred evenly over space. Our study reveals that proprietors respond rationally to economic incentives, and draws policy recommendations.