| Contents | 5 |
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| List of Figures | 10 |
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| List of Tables | 12 |
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| Chapter 1: Introduction | 16 |
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| Small and Medium-Sized Towns | 16 |
| Recent Developments | 17 |
| Countryside Policies and Towns | 18 |
| European Countryside Policies | 18 |
| Towns in National Countryside Policies | 19 |
| Economic Diversity | 20 |
| Importance of Towns | 20 |
| Aim and Set-Up | 21 |
| Research Questions | 21 |
| Set-Up | 22 |
| Data Set and Spatial Set-Up | 23 |
| Relevant Methodologies | 25 |
| Multinomial Logit Model (MNL): Spatial Determinants of Shopping | 25 |
| Censored Regression Model: Off-Farm Labour Income | 26 |
| Social Accounting Matrices (SAMs): Spatial Economic Structures | 26 |
| Microsimulation (MSM): Composition of Households in Town and Hinterland | 27 |
| Micro- and macro-approaches | 27 |
| Appendix A1.1: Names of the 30 selected towns | 28 |
| Chapter 2: Town and Hinterland Interactions in Rural Areas | 30 |
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| Introduction | 30 |
| Rural Areas | 31 |
| What Is Urban and What Is Rural? | 31 |
| The Agricultural Sector | 31 |
| A New-Farming Context in Europe: Post-Productivism | 33 |
| Specialization in Agricultural Activities Related to the Level of Rurality | 34 |
| Rural Areas in the Netherlands | 35 |
| The Countryside as Romantic Ideal | 35 |
| The Countryside as an Economic Powerhouse | 36 |
| The Countryside as a Realm of Life | 37 |
| Urbanization of Rural Areas | 37 |
| Towns | 39 |
| Development of the First Towns | 39 |
| Theory of Regions and Central Places | 40 |
| Why Towns Exist | 41 |
| Interdependency Between Towns and Rural Areas | 42 |
| Town and Hinterland in a Model: Values, Activities and Actors | 44 |
| Functions of Rural Areas | 44 |
| Conceptual Framework of Town-Hinterland Functions | 45 |
| Town Actors | 48 |
| Hinterland Actors | 49 |
| Possible Problems and Difficulties | 49 |
| Future Challenges in Town-Hinterland Interactions | 50 |
| Chapter 3: Multifunctionality of Towns: Exploration of the Spatial Behaviour of Households | 52 |
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| Introduction | 52 |
| Multifunctionality of Towns for Town and Hinterland Households | 53 |
| Towns as a Place to Shop | 53 |
| Supply of Shops | 54 |
| Location of Purchases | 54 |
| Focusing on Different Products and Services | 56 |
| Towns as a Place to Work | 57 |
| Supply of Jobs | 58 |
| Location of Jobs of Local Households | 58 |
| Kind of Occupation and Job Location of Local Households | 59 |
| Towns as a Place to Live | 60 |
| Regression Analysis of Purchases Bought in Town and Hinterland | 62 |
| Spatial Shopping Behaviour of Dutch Households | 64 |
| Factors Affecting the Destination Choice of Households for Shopping | 64 |
| Socio-Economic Factors | 66 |
| Location Factors | 66 |
| Characteristics of Dutch Town and Hinterland Households | 67 |
| Multinomial Logit Model of Spatial Shopping Behaviour (MNL) | 68 |
| Results of the Multinomial Logit Model | 69 |
| Summary and Conclusions | 71 |
| Chapter 4: Farms in a Modern World: Local Integration and Off-Farm Employment | 74 |
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| Introduction | 74 |
| Economic Integration of Firms and Farms | 76 |
| Integration Indicator | 76 |
| Integration of Expenditures and Sales of Farms and Firms | 78 |
| Local Expenditures and Sales in Absolute Values | 79 |
| Income Sources of Farm Households | 81 |
| Off-Farm Employment in the Netherlands | 83 |
| Relevant Variables | 83 |
| Household Variables | 84 |
| Farm Variables | 84 |
| Spatial Variables | 85 |
| Data Collection and Preparation | 85 |
| Off-Farm Activities | 86 |
| Estimating the Behaviour of Farmers | 88 |
| Conclusions | 90 |
| Appendix4.1: Integration Indicators for All Areas | 91 |
| Appendix4.2: Absolute Local Expenditures and Sales | 92 |
| Chapter 5: Town-Hinterland Relations: A Social Accounting Matrix Approach | 94 |
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| The SAM-Framework | 94 |
| Introduction | 94 |
| Examples of SAM-Based Studies | 95 |
| Structure of a SAM Table | 96 |
| Advantages and Disadvantages of SAM Analysis | 98 |
| Regional SAM | 99 |
| From a National to a Regional Model | 99 |
| Interregional SAMs at Town-Hinterland Level | 100 |
| Economic Structure of Small and Medium-Sized European Towns | 101 |
| Relative Importance of Town and Hinterland in the Local Economy | 102 |
| Importance of Sectors in the Total Production Output of the Local Economy | 103 |
| Importance of Town and Hinterland for Firms in Selling Output and Obtaining Inputs | 104 |
| Importance of Town and Hinterland to Local Households | 105 |
| Multiplier Analysis | 106 |
| Introduction | 106 |
| Variations in Multiplier Values | 106 |
| Interregional SAM Multipliers at Town-Hinterland Level | 107 |
| SAM Output Multipliers | 108 |
| Aggregated Output Multipliers | 108 |
| Composition of SAM Output Multipliers | 109 |
| Key-Sectors | 111 |
| SAM Income Multipliers | 113 |
| Conclusions | 115 |
| Appendix 5.1: Format of inter-regional Marketowns SAM (53x53) | 118 |
| Appendix5.2: List of accounts in inter-local SAMs of Marketowns | 121 |
| Appendix5.3: Output multipliers per sector for town and hinterland in five European countries | 122 |
| Appendix5.4: SAM multiplier analysis of the Dutch towns | 123 |
| Output Multipliers | 123 |
| Income Multipliers | 124 |
| Employment Multipliers |