Optimal strategies of development processes of frontier environments

This paper explores the conditions for successful development processes of frontier zones. We start with a stylyzed dynamic model that assumes putty-clay properties, i.e. labor and capital have quality variations according to their vintages. The dynamic path depends on the demand feedback, on the stocks of private and public infrastructures, and on the natural and human resources. The American and Israeli case studies are used to include more realistic conditions such as uncertainty to explore the temporal stages of development that include: search, consolidation, development and halt. Both analytic and descriptive results indicate the close cooperation between manpower and the local structure in developing the appropriate technologies.