RURAL WEALTH AND WELFARE: ECONOMIC PRINCIPLES AND APPLIED IN FARM LIFE

By RICHARD SANCHEZ

CONTENTS INTRODUCTION 11 SMALL AND MEDIUM-SIZED TOWNS 12 RECENT DEVELOPMENTS 13 COUNTRYSIDE POLICIES AND TOWNS 131 EUROPEAN COUNTRYSIDE POLICIES 132 TOWNS IN NATIONAL COUNTRYSIDE POLICIES 133 ECONOMIC DIVERSITY 134 IMPORTANCE OF TOWNS 14 AIM AND SET-UP 141 RESEARCH QUESTIONS 142 SET-UP 15 DATA SET AND SPATIAL SET-UP 16 RELEVANT METHODOLOGIES 161 MULTINOMIAL LOGIT MODEL (MNL): SPATIAL DETERMINANTS OF SHOPPING 162 CENSORED REGRESSION MODEL: OFF-FARM LABOUR INCOME 163 SOCIAL ACCOUNTING MATRICES (SAMS): SPATIAL ECONOMIC STRUCTURES 164 MICROSIMULATION (MSM): COMPOSITION OF HOUSEHOLDS IN TOWN AND HINTERLAND 165 MICRO- AND MACRO-APPROACHES TOWN AND HINTERLAND INTERACTIONS IN RURAL AREAS 21 INTRODUCTION 22 RURAL AREAS 221 WHAT IS URBAN AND WHAT IS RURAL? 222 THE AGRICULTURAL SECTOR 223 A NEW-FARMING CONTEXT IN EUROPE: POST-PRODUCTIVISM 224 SPECIALIZATION IN AGRICULTURAL ACTIVITIES RELATED TO THE LEVEL OF RURALITY 23 RURAL AREAS IN THE NETHERLANDS 231 THE COUNTRYSIDE AS ROMANTIC IDEAL 232 THE COUNTRYSIDE AS AN ECONOMIC POWERHOUSE 233 THE COUNTRYSIDE AS A REALM OF LIFE 24 URBANIZATION OF RURAL AREAS 25 TOWNS 251 DEVELOPMENT OF THE FIRST TOWNS 252 THEORY OF REGIONS AND CENTRAL PLACES 253 WHY TOWNS EXIST 254 INTERDEPENDENCY BETWEEN TOWNS AND RURAL AREAS 26 TOWN AND HINTERLAND IN A MODEL: VALUES, ACTIVITIES AND ACTORS 261 FUNCTIONS OF RURAL AREAS 262 CONCEPTUAL FRAMEWORK OF TOWN-HINTERLAND FUNCTIONS 263 TOWN ACTORS 264 HINTERLAND ACTORS 265 POSSIBLE PROBLEMS AND DIF?CULTIES 27 FUTURE CHALLENGES IN TOWN-HINTERLAND INTERACTIONS MULTIFUNCTIONALITY OF TOWNS: EXPLORATION OF THE SPATIAL BEHAVIOUR OF HOUSEHOLDS 31 INTRODUCTION 32 MULTIFUNCTIONALITY OF TOWNS FOR TOWN AND HINTERLAND HOUSEHOLDS 321 TOWNS AS A PLACE TO SHOP 322 TOWNS AS A PLACE TO WORK 323 TOWNS AS A PLACE TO LIVE 33 REGRESSION ANALYSIS OF PURCHASES BOUGHT IN TOWN AND HINTERLAND 34 SPATIAL SHOPPING BEHAVIOUR OF DUTCH HOUSEHOLDS 341 FACTORS AFFECTING THE DESTINATION CHOICE OF HOUSEHOLDS FOR SHOPPING 342 CHARACTERISTICS OF DUTCH TOWN AND HINTERLAND HOUSEHOLDS 343 MULTINOMIAL LOGIT MODEL OF SPATIAL SHOPPING BEHAVIOUR (MNL) 344 RESULTS OF THE MULTINOMIAL LOGIT MODEL 35 SUMMARY AND CONCLUSIONS FARMS IN A MODERN WORLD: LOCAL INTEGRATION AND OFF-FARM EMPLOYMENT 41 INTRODUCTION 42 ECONOMIC INTEGRATION OF FIRMS AND FARMS 421 INTEGRATION INDICATOR CONTENTS 422 INTEGRATION OF EXPENDITURES AND SALES OF FARMS AND FIRMS 423 LOCAL EXPENDITURES AND SALES IN ABSOLUTE VALUES 43 INCOME SOURCES OF FARM HOUSEHOLDS 44 OFF-FARM EMPLOYMENT IN THE NETHERLANDS 441 RELEVANT VARIABLES 442 DATA COLLECTION AND PREPARATION 443 OFF-FARM ACTIVITIES 45 ESTIMATING THE BEHAVIOUR OF FARMERS 46 CONCLUSIONS TOWN-HINTERLAND RELATIONS: A SOCIAL ACCOUNTING MATRIX APPROACH 51 THE SAM-FRAMEWORK 511 INTRODUCTION 512 EXAMPLES OF SAM-BASED STUDIES 513 STRUCTURE OF A SAM TABLE 514 ADVANTAGES AND DISADVANTAGES OF SAM ANALYSIS 52 REGIONAL SAM 521 FROM A NATIONAL TO A REGIONAL MODEL 522 INTERREGIONAL SAMS AT TOWN-HINTERLAND LEVEL 53 ECONOMIC STRUCTURE OF SMALL AND MEDIUM-SIZED EUROPEAN TOWNS 531 RELATIVE IMPORTANCE OF TOWN AND HINTERLAND IN THE LOCAL ECONOMY 532 IMPORTANCE OF SECTORS IN THE TOTAL PRODUCTION OUTPUT OF THE LOCAL ECONOMY 533 IMPORTANCE OF TOWN AND HINTERLAND FOR FIRMS IN SELLING OUTPUT AND OBTAINING INPUTS 534 IMPORTANCE OF TOWN AND HINTERLAND TO LOCAL HOUSEHOLDS 54 MULTIPLIER ANALYSIS 541 INTRODUCTION 542 VARIATIONS IN MULTIPLIER VALUES 543 INTERREGIONAL SAM MULTIPLIERS AT TOWN-HINTERLAND LEVEL 544 SAM OUTPUT MULTIPLIERS 545 SAM INCOME MULTIPLIERS 55 CONCLUSIONS MICROSIMULATION OF RURAL HOUSEHOLDS 61 INTRODUCTION 611 SHORT HISTORY OF MSM 612 EXAMPLES OF EXISTING MSM 613 DISTINGUISHING DIFFERENT KINDS OF MSMS CONTENTS 614 ADVANTAGES AND DISADVANTAGES OF MSM 62 SIMTOWN MSM FRAMEWORK 621 CONSTRAINT VARIABLES 622 VALIDATION AND CHOICES 623 SIMTOWN, THE FINAL FRAMEWORK 63 SIMTOWN MICROPOPULATION: A PICTURE OF THE CURRENT SITUATION 631 EXPENDITURE FLOWS OF HOUSEHOLDS 632 SPATIAL DISTRIBUTION OF HOUSEHOLDS WITH A LOW INCOME 633 SPATIAL DISTRIBUTION OF RECENTLY ARRIVED HOUSEHOLDS 64 CONCLUSIONS FUTURE DEVELOPMENTS IN RURAL AREAS: COMBINING MICRO AND MACRO 71 INTRODUCTION 72 BOTTOM-UP APPROACH IN MICRO-MACRO-MODELLING 73 MICROSIMULATION AS A TOOL TO EXPLORE THE FUTURE 74 MICROPOPULATION OF 2010 AND 741 MICROSIMULATION OF NUNSPEET HOUSEHOLDS 742 CHANGING POPULATION CHARACTERISTICS 743 EFFECT ON SHOPPING EXPENSES 75 MACRO-EFFECTS OF POPULATION DYNAMICS 751 RETAIL SECTOR 752 SAM RETAIL MULTIPLIER 76 SIMULATION OF FUTURE SHOPPING DEVELOPMENTS 761 SHOPPING DEVELOPMENTS AND MSM 762 BUILDING A NEW SUPERMARKET 763 BUILDING A NEW RETAIL CENTRE 764 MICRO-RESULTS: WHICH HOUSEHOLDS WILL CHANGE THEIR BEHAVIOUR? 77 MACRO-EFFECTS OF NEW RETAIL DEVELOPMENTS 78 CONCLUSIONS CONCLUSIONS AND A ROADMAP TO FUTURE RESEARCH 81 INTRODUCTION 82 TOWNS AND HOUSEHOLDS 821 IMPORTANCE OF TOWN AND HINTERLAND TO HOUSEHOLD ACTIVITIES 822 HOW SPATIAL CHARACTERISTICS AFFECT THE SHOPPING BEHAVIOUR OF HOUSEHOLDS 823 ECONOMIC IMPORTANCE OF DIFFERENT GROUPS OF HOUSEHOLDS TO THE LOCAL ECONOMY 824 EFFECT OF FUTURE DEMOGRAPHIC DEVELOPMENTS ON THE EXPENDITURES OF LOCAL HOUSEHOLDS CONTENTS 83 TOWNS AND FARMS AND FIRMS 831 THE IMPORTANCE OF LOCAL NETWORKS TO FIRM AND FARMS 832 KEY SECTORS TO THE LOCAL ECONOMY 833 FUTURE DEVELOPMENTS IN THE RETAIL SECTOR AND THE EFFECT ON LOCAL OUTPUT 84 THE EUROPEAN SCENE: NATIONAL VARIABILITY 85 THE IMPORTANCE OF TOWNS TO THE RURAL ECONOMY 86 A ROAD MAP FOR FURTHER RESEARCH REFERENCES