Discussion Papers, Department of Business and Management Science, Norwegian School of Economics (NHH)
David Philip McArthur
Employment, transport infrastructure and rural depopulation: a new spatial equilibrium model
(), Inge Thorsen
() and Jan Ubøe
Abstract: In this paper we propose a new spatial equilibrium model,
and use it to discuss issues related to rural depopulation. The discussion
focuses on how investments in transport infrastructure and the spatial
distribution of basic sector jobs can promote a relatively balanced growth
of peripheral and central areas of a region. Through interdependencies in
individual migration decisions and an economic base multiplier mechanism,
negative exogenous shocks may take a peripheral zone beyond a bifurcation
point, into an equilibrium of dramatically lower population and employment.
We study how the location of bifurcation points depend on spatial
interaction behavioural parameters and variables subject to regional
policy. We also discuss the issue of the timing of interventions intended
to prevent a process of rural depopulation.
Keywords: Employment; transport infrastructure; rural depopulation; spatial equilibrium model; (follow links to similar papers)
JEL-Codes: R00; R10; (follow links to similar papers)
29 pages, September 16, 2013
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