RURAL PLANNING: PROBLEMS AND POLICIES

Over the last decade there has been an increase in concern, expressed by a variety of interests, about the countryside. Increasing agricultural intensification has been accompanied by changes in the rural landscape and a decline in other areas of the rural economy. There is concern about conservation, wildlife protection and ecological balance, while demands for recreation and access are growing. Conflicting policies can be observed in the various agencies responsible for the management of the countryside. There is a realisation that rural policy should be more comprehensive and co-ordinated but there are divergent views on the degree of intervention and the means by which it is implemented. This paper examines the nature of the problem of ‘rural planning’ as it obtains at the present time.     

Firm and industry elasticities of substitution: The two factor case

Summary For the industry composed of single output, two factor firms, industry elasticity of demand for one of the factors with respect to the price of the other is negative or positive as the elasticity of demand for industry output is greater or less thanindustry elasticity of substitution between the factors. Using isoclines, vectors, isoquants, and isoscales, it is shown that, where firm isoquants are non-homothetic, industry elasticity of substitution for constantindustry output allows for adjustment of the level of firm output, and thus exceeds firm elasticity of substitution for constantfirm output.He wishes to thank two anonymous referees for helpful suggestions.