Dynamic Coupling, Optimizing and Regional Interdependence

Abstract

R EGIONAL interdependence studies focus on geographical structure of economic variables. It seems evident that significant breakthroughs have been made in the past two decades towards improving theoretical understanding in this area. Progress in the application of interregional models to policy analysis has also been made. In agricultural economics, one must cite among other pioneers the works of Mighell and Black, Fox, Heady and Egbert, and Judge. I think it can be fairly said that no work in this field will be done that does not in some way benefit by their influence.' On the other hand, I do not think that any future work will extend these basic studies much beyond their current contributions without attention to two major aspects of economic structure. The first of these is intertemporal structure or, in short, dynamics. The second is the interconnectedness of production (or more generally, supply), transportation, and demand. It is now time to launch a major attack on these twin citadels. Without it we shall have neither an adequate understanding of interregional competition nor an adequate foundation for policy analysis and appraisal. This paper is devoted to an elaboration of the need for these two focal points and to a sketch of an appropriate research strategy.