Determining Viable Sizes for Indiana Communities Based on Essential Establishments and Services

Abstract

The percentage of Americans living in urban areas increases every year. This movement of people away from rural areas can reduce economic activity and lower quality of life in small communities. Because of the subjectivity associated with studying quality of life, the focus for this study shifted to determining if there is a minimum population at which a community can independently support basic establishments and services. To determine community viability, six essential establishments and services were analyzed—fire departments, police departments, schools, water services, wastewater services, and grocery stores. Binary logistic regression models were built to estimate the populations required for a community to sustain given establishments and services, and a multinomial logistic regression model was constructed to explain the relationship between population and the probability that a community has varying numbers of establishments and services. The models, plots, and tables produced during this process can provide economic development organizations and communities with tools for making better investment decisions, thereby improving the overall quality of life.