Journal Article

Impact of Counter-Urbanization on Size, Population Mix, and Welfare of an Agricultural Region

Eli Feinerman, Israel Finkelshtain, Anat Tchetchik and Mordehai Delgo

in American Journal of Agricultural Economics

Published on behalf of Agricultural and Applied Economics Association

Volume 93, issue 4, pages 1032-1047
Published in print July 2011 | ISSN: 0002-9092
Published online July 2011 | e-ISSN: 1467-8276 | DOI: https://dx.doi.org/10.1093/ajae/aar027
Impact of Counter-Urbanization on Size, Population Mix, and Welfare of an Agricultural Region

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  • Publicly Provided Goods
  • Urban, Rural, and Regional Economics
  • Socialist Systems and Transitional Economies
  • Economic Development

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The article explains the phenomenon of counter-urbanization, which has become prominent in most developed countries. We develop a model that provides an economic rationalization for the observed willingness of incumbent farmers of a rural region to absorb nonfarmer urban migrants. The analytical findings show that counter-urbanization increases the region's welfare-maximizing population, decreases the optimal number of incumbent farmers, and increases the per capita welfare. The empirical results, which are based on data from rural Israel, demonstrate that while the optimal population of farmers decreases slightly, the total optimal population of the region more than triples and farmers' per capita welfare almost doubles.

Keywords: counter-urbanization; local public good; farmer welfare; mixed populations; H44; O18; P26; R13

Journal Article.  8737 words.  Illustrated.

Subjects: Publicly Provided Goods ; Urban, Rural, and Regional Economics ; Socialist Systems and Transitional Economies ; Economic Development

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