NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Does Agriculture Generate Local Economic Spillovers? Short-run and Long-run Evidence from the Ogallala Aquifer

Richard Hornbeck, Pinar Keskin

NBER Working Paper No. 18416
Issued in September 2012
NBER Program(s):   DAE   EEE   EFG

Agricultural development may support broader economic development, though agricultural expansion may also crowd-out local non-agricultural activity. On the United States Plains, areas over the Ogallala aquifer experienced windfall agricultural gains when post-WWII technologies increased farmers' access to groundwater. Comparing counties over the Ogallala with nearby similar counties, local non-agricultural sectors experienced only short-run benefits. Despite substantial persistent agricultural gains, there was no long-run expansion of local non-agricultural sectors and there are some indications of crowd-out. With the benefit of long-run historical perspective, supporting local agricultural production does not appear to generate local economic spillovers that might justify its distortionary impacts.

download in pdf format
   (1037 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w18416

Published: Richard Hornbeck & Pinar Keskin, 2015. "Does Agriculture Generate Local Economic Spillovers? Short-Run and Long-Run Evidence from the Ogallala Aquifer," American Economic Journal: Economic Policy, American Economic Association, vol. 7(2), pages 192-213, May. citation courtesy of

Users who downloaded this paper also downloaded these:
Hornbeck and Keskin w17625 The Evolving Impact of the Ogallala Aquifer: Agricultural Adaptation to Groundwater and Climate
Thorbecke Introduction to "The Role of Agriculture in Economic Development"
Gollin and Rogerson w15863 Agriculture, Roads, and Economic Development in Uganda
Broner, Bustos, and Carvalho w18337 Sources of Comparative Advantage in Polluting Industries
Burke, Dykema, Lobell, Miguel, and Satyanath w17092 Incorporating Climate Uncertainty into Estimates of Climate Change Impacts, with Applications to U.S. and African Agriculture
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us