Multicollinearity and a lack of degrees of freedom are problems in simultaneous systems, particularly in large models where the number of predetermined variables may exceed the number of observations. Such problems are somewhat less obvious in the small and medium-sized models typically estimated by agricultural economists. Thus, estimators designed to cope with the degrees of freedom (undersized sample) problem have received little attention in agricultural economics applications relative to macroeconometric uses.

Research in rural community development is being pursued in a number of different directions. One of these is the identification and analysis of economic development alternatives facing rural communities. A second is the clarification and study of the preferences that rural communities may have with respect to these alternatives. The purpose of this paper is to provide a conceptual framework for integrating these two thrusts in rural development research.

The role that natural resources play in economic development and the effects of investments in natural resources on economic development have been matters of disagreement among economists. An excellent review of the arguments was given by Jansma in his analysis of studies on the investment in small watershed projects for S-71, a Southern Regional Research project C3). The general conclusion was that there were few measurable effects on employment and income from such projects and that these generally were noticeable only after a lag of several years. Colyer, however, in a study of the effects of natural resources on the levels and changes in income and employment in West Virginia concluded that there were links, although not necessary ones, between resource endowments and measures of economic development (1).

Retail firms in rural small towns survive because of the basic goods and services they provide to the residents in and within driving distance of the town. Yet, many small town firms have been forced to close due to migration of people to larger cities. The economic problems associated with the migration have caused federal and state governments to be deeply concerned. The remaining small retail firms do provide a foundation upon which to stimulate rural economic development and thus they are important to the nation's economy. They provide income and employment; they pay local property taxes, and they provide the personal interest of a small entrepreneur in the development of his community, a characteristic rarely found in the larger urban centers.

Three major problems appear common to recent research efforts aimed at measurement and assessment of the adequacy of community services. These include:

1. (i) difficulties and inconsistencies which relate to the definition and interpretation of utilization behavior,

2. (ii) econometric misspecification—e.g., omission of critical variables affecting needs or use—, and

3. (iii) choice of inappropriate estimation technique when the dependent variable (e.g., use or non-use of the service) is dichotomous.

Outdoor recreation concepts, programs, and planning have developed at a fast rate during the last decade. However, most criteria, standards, and guidelines for recreation planning have been developed for urban areas and have limited relevance to planning in rural areas. It has become evident that rural towns have different needs, requirements, and opportunities, and require distinctly different standards and concepts than urban areas. The goals of rural people, the types of recreation needed and resources available, the financial situation, the leadership, and the land suitabilities all conspire against use of urban standards and indicate the need for procedures and standards designed for rural areas (2).

Agricultural land in rural-urban fringe areas has received strong competition from expanding urban communities during recent years. Much of this urban growth has occurred haphazardly and has removed many acres of prime agricultural land from production as the private land market has failed to fully account for the social costs of land-use transitions. The impacts from these shifts in land use are felt by farmers, municipalities and the general public.

In the Northeast, efforts to preserve farmland have been justified primarily on the basis of shared feelings and values concerning land use as it affects the environment and quality of life. However, attention is increasingly directed toward economic impacts. Although success in preserving rural environments depends upon anticipating the economic consequences of alternative preservation measures, it is easy for interested groups to overlook some economic impacts, while concentrating on others.

Economists have long wrestled with the problem of determining the value of nonmarket recreational activities. Knowing the value of a recreational activity could be helpful in at least three respects: (1) if the recreational activity is publicly provided, knowing the value which society places on that nonmarket activity would help in determining the appropriate level of public investment, (2) if a user charge for access to the recreational activity were necessary, a knowledge of the distribution of individual valuations would permit estimates of use (demand under alternative fees) and (3) to the extent that the resources involved in the recreational activity have other uses, knowledge of recreational values would help in determining the appropriate allocation of resources between the recreational activity and the other uses. Often the non-recreational activities already have dollar values established in markets; if the other uses are also nonmarket in nature, imputations of their dollar values would also be necessary.

The purpose of the study is to describe quantitatively a market model of food marketing services for the post-W.W. II United States.

In recent years, the topic of land prices has received considerable attention in the literature. Part of the interest stems from the importance of land as a factor of production in agriculture. Land prices have a direct influence on the ability of young farmers to operate and expand their operations. Thus, the interest in land prices by farmers, bankers and input suppliers is easily understood.

The majority of U.S. dairy farmers have invested in on-farm storage equipment with capacity for at least two days’ milk production. However, the remaining farms, with limited investment in storage capacity may have a major impact on milk assembly costs. The purpose of this study is to explore the impact daily milk pick-ups have on milk assembly costs and to compare these costs to the cost of increasing on-farm milk storage capacity.

U. S. Department of Agriculture statistics indicate that New York, with 21.4 million bushels, produced approximately 14 percent of the total U. S. apple crop in 1974. Information concerning alternative market outlets is necessary if the apple marketing process is to be efficient and effective. A knowledge of the costs and net returns associated with each market is essential in determining the most profitable way for the grower to market his fruit.

Economists play two rather distinct roles in the area of public policy. These roles might be characterized as analytical and operational. In their analytical role, economists develop models designed to evaluate alternative policy measures which either might be or have been adopted by a public agency. In their operational role, economists help develop the specific techniques and estimates necessary to make a chosen policy operational.

The property tax continues to play a major role in raising public revenues at the local level. While this tax contributed only 15.1 percent of all governmental (Federal, State and local) tax revenue in fiscal 1974, it accounted for 35.3 percent of local general revenue and 82.2 percent of all local tax revenue. It also continues to be especially important as a source of revenue for local schools with 57.4 percent of all local property taxes going to support local schools in 1969–70–the latest year for which data are available.

There is perennial interest in the quality of education relative to its cost. For example, several Supreme Courts have ruled that funding education on the basis of a real property tax is unconstitutional because it makes the quality of a child's education dependent upon the wealth of his parents and neighbors. California, Michigan, Texas, and other states have focused on this problem, though the U.S. Supreme Court overturned the Texas decision (Rodriquez et. al. vs. San Antonio). These cases illustrate continuing interest in educational quality and cost. At the school level, the relation between quality and cost is also well known. Most, if not all, school administrators continually face the problem of providing education with rapidly increasing costs. In Nevada, for example, education costs have been increasing at a rate of 13.5 percent per year.

Although population, employment and income rose throughout the country during the 1960's, growth in New York was less rapid than in the country at large. Population in the state increased by 8.7 percent in the 1960–70 decade, compared with 10.7 percent in the nation. Per capita incomes also rose during the period but by only 65 percent in the state, compared to 78 percent nationwide; the ways in which New Yorkers were earning a living changed dramatically. Manufacturing employment by place of residence declined by 13.4 percent between 1960 and 1970, but nearly a quarter of all jobs in the state remained in manufacturing. Agriculture and agriculturally related jobs declined; the largest growth areas were trade and services. Outstripping the growth in the nation as a whole, employment in the trade and service sectors accounted for two-thirds of all jobs in New York by 1970.

Sensitivity of the general public to pollution of air, water and land has been rapidly increasing as urban development spreads into rural areas of Maryland, the Northeast and the nation. Among the rural groups who have become vitally concerned with this situation are dairy farmers. They are especially concerned over impending regulations for handling animal wastes and the possible effect on the economics of dairy operations.