Describes funding of rural economic development by the Urban Development Action Grants program, 1978-88. Examines program operation, distribution of funds by region and industry, and costs per job created. Suggests that capital subsidy programs that require substantial investment by recipient firms can effectively stimulate rural growth. (SV)

Analyzes the distribution of 1985 federal expenditures among U.S. counties by expenditure function and object and by county type (metro/nonmetro and nonmetro economic base). Concludes that federal spending in nonmetro areas focuses on income redistribution and does not promote economic development. (SV)

In spite of government transfer programs, 10 percent of the United States population remained in poverty after all transfers were made in 1983. In nonmetro areas the poverty rate was 12.8 percent. Many were working poor (taxes reduced their earnings) who will benefit from recent tax reform that lessens their tax burden. (JHZ)

Using measures sensitive to rural labor market conditions, determined that nearly a third of the rural labor force is underemployed--by being out of a job, working for low pay, or working too few hours. The current system of calculating unemployment rate seriously underestimates the extent of economic hardship in rural areas. (JHZ)

Describes rural implementation of the Empowerment Zones and Enterprise Communities program, which combines flexible long-term financing with strategic planning and performance benchmarking to empower impoverished communities to address structural problems comprehensively. Impressive 3-year results include job creation; improved community services;…

Examines six federal programs offering direct credit assistance to nonfarm businesses in nonmetropolitan areas, 1983-89. The Small Business Loans Program provided 72% of funds. Nonmetropolitan areas overall received federal credit assistance proportional to nonmetro percentage of national population, but assistance was disproportionately low in…