Employment, Transport Infrastructure and Rural Depopulation: A New Spatial Equilibrium Model

30 Pages Posted: 18 Sep 2013

See all articles by David Philip McArthur

David Philip McArthur

University of Oslo - Faculty of Medicine

Inge Thorsen

Stord Haugesund University College

Jan Uboe

Norwegian School of Economics (NHH) - Department of Business and Management Science

Date Written: September 16, 2013

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

JEL Classification: R00, R10

Suggested Citation

McArthur, David Philip and Thorsen, Inge and Uboe, Jan, Employment, Transport Infrastructure and Rural Depopulation: A New Spatial Equilibrium Model (September 16, 2013). NHH Dept. of Business and Management Science Discussion Paper No. 2013/9, Available at SSRN: https://ssrn.com/abstract=2326943 or http://dx.doi.org/10.2139/ssrn.2326943

David Philip McArthur

University of Oslo - Faculty of Medicine ( email )

Postboks 1089
Blindern
OSLO, 0318
Norway
004722845277 (Phone)

Inge Thorsen

Stord Haugesund University College ( email )

Skaregaten 103
N-5500, Haugesund, Rogaland N-5414
Norway

Jan Uboe (Contact Author)

Norwegian School of Economics (NHH) - Department of Business and Management Science ( email )

Helleveien 30
Bergen, NO-5045
Norway

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