a theoretical and empirical analysis of family migration and household production reply of her household production as factors in the family s migration decisions 38 in this paper the research on family migration will be extended in three ways a formal model of household production and family migration will be developed and used to generate testable hypotheses about family migration variables which otherwise would not have a clear economic interpretation are incorporated into the model the model will then be estimated and some policy implications will be discussed one policy implication concerns the efficiency of the labor market labor market efficiency needs to be judged not only in terms of the efficiency of the job search of single individuals but also in terms of the efficiency of the joint job search of double income families this paper is organized into five sections first a comparative static household production model of locational choice is developed 2 next this model of locational choice is used to develop a theoretical model of family migration third the data and empirical model are discussed fourth the empirical results are reported and interpreted in terms of three different types of migration estimates of the impact of selected variables on the distance of the move are also considered the final section summarizes the general findings and offers some policy implications

the impact of internal migration on married couples earnings in britain previous studies have often suggested that wives experience a decline in labour market fortunes after an internal migration of a married couple this evidence is consistent with wives being tied movers on average i use the british household panel survey to consider the extent to which wives annual earnings change systematically in the year following an internal migration event for married couples within britain the earnings of working husbands appear to be little impacted by migration wives earnings do fall though this affect is short lived and concentrated in a decline in the weeks of work for the wife

place to place migration in colombia the determinants of lifetime and recent place to place migration in colombia are investigated using unpublished data from the 1973 census the data cover 12 zones rural and urban segments of 6 regions and are analyzed for the population as a whole and for eight specific demographic groups including four educational categories and the two sexes the basic proposition is that areas economic opportunities play a central role in determining the spatial allocation of the population the results give strong support to the economic model of migration overall and in explaining differences in migration behavior among demographic groups excerpt

local pay determination theoretical models of local pay are reviewed ranging from neoclassical perspectives unemployment wage trade off models and segmented labor market approaches the empirical work on u s north south differentials is discussed for the u k studies of the extent of and trends in geographical pay differentials are considered as well as behavioral explanations focusing on the role of excess demand the issue of adjustment processes is then discussed both in theory and in relation to empirical work for the u s and u k this discussion focuses largely on geographical spillover effects in terms of origins evidence and issues of identification finally the impact of certain impediments in the adjustment process are considered specifically in relation to the u k these concern the role and influence of national wage bargaining as well as factors inhibiting labor migration stemming from the housing market and the climate of the national labor market copyright 1992 by blackwell publishers ltd

a productivity model of city crowdedness abstract population density varies widely across us cities a simple static general equilibrium model suggests that moderate sized differences in cities total factor productivity can account for such variation nevertheless the productivity required to sustain above average population densities considerably exceeds estimates of the increase in productivity caused by such high density in contrast increasing returns to scale may be able to sustain multiple equilibria at below average population densities

quality of life firm productivity and the value of amenities across canadian cities we estimate quality of life and productivity differences across canada s metropolitan areas in a hedonic general equilibrium framework these are based on the estimated willingness to pay of heterogeneous households and firms to locate in various cities which differ in their wage levels housing costs and land values using 2006 canadian census data our metropolitan quality of life estimates are somewhat consistent with popular rankings yet find canadians care more about climate and culture quality of life is highest in victoria for anglophones montreal for francophones and vancouver for allophones and lowest in more remote cities toronto is canada s most productive city vancouver is the overall most valuable city qualite de vie productivite des entreprises et la valeur des avantages dans les diverses villes canadiennes on evalue les differences entre la qualite de vie et la productivite des entreprises entre les zones metropolitaines au canada a l aide d un cadre d analyse d equilibre general hedonique ces metriques sont basees sur l estimation de la volonte de payer de menages et d entreprises heterogenes pour se localiser dans diverses villes qui different tant pour ce qui est des niveaux de salaires des couts de l habitation et des prix des terrains a l aide des donnees du recensement canadien de 2006 on construit des evaluations de la qualite de vie des diverses zones metropolitaines qui s arriment convenablement aux ordonnancements en vogue mais on decouvre que les canadiens portent une attention particuliere au climat et a la culture la qualite de vie est la plus elevee a victoria pour les anglophones a montreal pour les francophones et a vancouver pour les allophones et la plus faible pour les villes eloignees des grands centres toronto est la ville la plus productive vancouver est generalement la plus appreciee

why are power couples increasingly concentrated in large metropolitan areas using the panel study of income dynamics psid we test costa and kahn s colocation hypothesis which predicts that power couples couples in which both spouses have college degrees are more likely to migrate to the largest cities than part power couples or power singles we find no support for this hypothesis instead regression analyses suggest that only the education of the husband and not the joint education profile of the couple affects the propensity to migrate to large metropolitan areas the observed location trends are better explained by higher rates of power couple formation in larger metropolitan areas

the role of site and job characteristics in hedonic wage models recent economic analyses of wage rate differentials have generally used some form of hedonic framework in explaining the observed wage structure while these studies have adopted this common theoretical justification the models have been used to serve two distinct objectives the first of these is an empirical test of the theory of equalizing differences originally introduced by adam smith in such applications see brown 7 lucas 26 olson 28 thaler and rosen 36 and viscusi 40 as examples specific job characteristics measured with technical information or with worker perceptions have been used to explain differences in wage rates across individuals and jobs while there are a number of these studies there has not been a consistent pattern of support for the theory indeed with the exception of job risks many characteristics that a priori would be expected to lead to equalizing differences have often exhibited incorrect and or statistically insignificant measured effects on wages the second use for wage models has been as the basis for an index of the quality of life in urban areas in this framework households are assumed to select residential locations so as to maximize their individual welfare migration between cities provides the mechanism for an equilibrium household assignment under ideal conditions the pattern of equilibrium wage rates reflects the attributes of the cities involved see hoch 20 izraeli 23 cropper lo cropper and arriaga salinas 111 and rosen 31 as examples the purpose of this paper is to develop a model for wage rate differentials that includes both job and site characteristics and to estimate the model with a large micro data set our wage models provide estimates of a market clearing envelope which includes each of two types of past analyses as a

the effects of housing prices wages and commuting time on joint residential and job location choices an empiricalmodelof joint decisions of where to l and where to work demonstrates that individuals make residential and job location choices by trading off wages housing prices and commuting costs wages are higher in metropolitan markets but housing prices are also higher in urban areas consumers can live in lower priced nonmetropolitan houses and still earn urban wages but they incur commuting costs that increase with distance from the city improvements in transportation that lower commuting time will increase nonmetropolitan populations and will increase the number of nonmetropolitan commuters to metropolitan markets equal wage growth across labor markets causes a shift in relative population from rural to urban markets while an equiproportional increase in housing prices causes a population shift toward rural areas

bidding with securities comment to feasible securities 1 their main finding concerns the role of the steepness of securities in determining the seller s revenue they show that the steeper the payment to the seller as a func tion of the realized value the higher is the seller s expected revenue a shift from a security say a debt to a steeper one say equity or call option flattens the surplus accruing to a bidder as a function of his future realized value and this levels the competitive gaps between bidders hence the competition becomes intensified 2 in this comment we wish to add to dks analysis a caveat that the adverse selection prob lem should be an important part of security and auction design consideration unlike cash bids security bids are difficult to evaluate when the seller does not know the buyer s exact type for instance a 40 percent share of an asset managed by a buyer may be less valuable than a 30 per cent share of the same asset managed by a different buyer if the latter is much more competent lacking such information a seller may fall victim to adverse selection choosing a wrong bidder this problem has been noted by several authors such as william samuelson 1987 simon board 2007 and charles zheng 2001 in the context of a fixed security design our concern here is its relevance for security design we show that the adverse selection problem may lead to rankings of alternative security designs that are quite different from and in fact opposite to those found in dks in particular under a reasonable circumstance a steeper security is more vulnerable to adverse selection and could result in a poorer revenue performance than a flatter security to illustrate suppose there are two buyers 1 and 2 buyer 1 2 has a project which gener ates a gross return of v and requires initial investment cost of x r suppose that vx v2 0 and xx x2 and also that vx xx v2 x2 that is buyer 1 s project generates a higher net return so is efficient to select but requires a higher investment than buyer 2 s project this assumption is reasonable a financially distressed or bankrupt firm will more likely turn profitable again under management willing to infuse more cash for instance or a firm that can generate a greater value from an underperforming target is more likely to have a higher opportunity cost e g of pursuing other target or standalone values the assumption is equally compelling in other contexts such as the government sale of oil leases

interregional migration and post move employment in two earner families evidence from finland nivalainen s 2005 interregional migration and post move employment in two earner families evidence from finland regional studies 39 891 907 this paper investigates the post move employment of men and women in finnish two earner families taking account of selection bias and heteroskedasticity a unique data set consisting of actual couples is used heteroskedasticity does not seem to be a great problem but the results demonstrate the importance of the selectivity correction unobservable characteristics exist that both increase migrants employment potential and make them more mobile migration itself generally exerts a negative effect i e migrants have a lower tendency to be employed than stayers however average inspections may mask a wide variation extended analysis shows that migration in fact leaves the majority of husbands unaffected and that some husbands actually benefit from moving instead migration has a negative impact on wives in all cases hence the results suggest that the h

on bidding with securities risk aversion and positive dependence abstract demarzo et al 2005 consider auctions in which bids are selected from a completely ordered family of securities whose values are tied to the resource being auctioned the paper defines a notion of relative steepness of families of securities and shows that a steeper family provides greater expected revenue to the seller two assumptions are the buyers are risk neutral the random variables through which values and signals of the buyers are realized are affiliated we show that this revenue ranking holds for the second price auction in the case of risk aversion however it does not hold if affiliation is relaxed to a less restrictive form of positive dependence namely first order stochastic dominance fosd we define the relative strong steepness of families of securities and show that it provides a necessary and sufficient condition for comparing two families in the fosd case all results extend to the english auction

good for the gander foreign direct investment in the united states as recently as 1978 c fred bergsten thomas horst and theodore moran were able to address the most urgent issues linking u s welfare and direct investment in a book called american multinationals and american interests a decade later the focus of policy attention had shifted almost completely scores of books and articles attempted to interpret the flow of incoming foreign direct investment ifdi that raised the 2 1 percent share of the u s nonfinancial corporate assets held by foreign controlled enterprises to 10 6

endogenous entry to security bid auctions we endogenize entry to a security bid auction where participation is costly and bidders must decide given their private valuations whether to participate we first consider any minimum reserve security bid of a fixed expected value that weakly exceeds the asset s value when retained by the seller demarzo kremer and skrzypacz 2005 establish that with a fixed number of bidders auctions with steeper securities yield the seller more revenues counterintuitively we find that auctions with steeper securities also attract more entry further enhancing the revenues from such auctions we then establish that with optimal reserve securities auctions with steeper securities always yield higher expected revenues

union membership in the united states 1973 1981 this paper reports estimates of union membership gathered from may current population surveys from 1973 to 1981 the authors present data by occupation industry selected states and smsas race gender and educational attainment the paper both extends and differs from that by freeman and medoff which presents unionism estimates for the private sector for 1968 75 to facilitate longitudinal analysis this paper reports three year moving averages of occupational and industry data and annual estimates of demographic classifications the data include public sector as well as private sector workers and they exclude workers not covered by the national labor relations act also the authors provide only union membership estimates not estimates on workers covered by union contracts this paper suggests that the percentage of all workers that are unionized in the united states remained fairly constant over the 1973 81 period

is there a compensating wage differential for high crime levels first evidence from europe abstract this paper investigates whether high regional crime levels lead to a compensating wage differential paid by firms in the respective region using data from german social security records official police statistics and official statistics for 2003 2006 i consider both violent and non violent crimes and use three way error components estimators to control for individual and regional heterogeneity the findings suggest that wages are practically unrelated to changes in crime rates this result is robust over a wide range of subgroups there is however some evidence that crime rates influence land prices

the impact of site characteristics on housing cost estimates abstract hedonic housing regressions using micro data for owners and renters from the 1972 1973 consumer expenditure survey are presented by including tract characteristics and public goods in these regressions evidence is presented which indicates sensitivity of the physical housing variable coefficients to the choice of included site related characteristics furthermore omission of public good variables can result in misleading and possibly perverse coefficients on access intermetropolitan housing cost estimates however are shown to be relatively insensitive to the choice of site related characteristics

optimal land development with endogenous environmental amenities a spatially explicit model of the optimal timing and location of land development is presented that incorporates dynamic interactions between land development and water quality ignoring two way interactions leads to a lower level of water quality more development and lower social welfare the optimal pace and pattern of development can be achieved through the assessment of an impact fee that internalizes pollution damages and irreversibility costs our results demonstrate the importance of accounting for the spatial dimension of land use the interdependence between land use and environmental quality and development irreversibility in models of urbanization and amenity driven growth copyright 2008 oxford university press

new estimates of climate demand evidence from location choice abstract we develop and apply to census data a new method for estimating climate demand the method is useful for ranking quality of life based upon a willingness to pay criterion our two major findings are that the willingness to pay quality of life index is correlated with the hedonic approach s ranking but that the migration approach generates much larger estimates of willingness to pay for a more moderate climate this finding is relevant for evaluating the economic impact of global warming

optimal equity auctions with heterogeneous bidders abstract i analyze the effects of heterogeneity in terms of bidders valuation distributions and standalone values in equity auctions auctions in which bidders offer equities rather than cash heterogeneity misaligns equity bids face values monetary values and bidder types making the seller s revenues sensitive to the auction design given heterogeneity i identify the mechanism that maximizes the expected revenue among all incentive compatible mechanisms of equity auctions i show how different sources of heterogeneity alter the optimal design revenues and allocational efficiency unlike optimal cash auctions myerson 1981 where bidders standalone values are irrelevant the allocation of optimal equity auctions favors bidders with lower standalone values because the seller can extract a larger proportion of their rents by contrast when bidders differ only in valuation distributions optimal equity auctions feature more efficient allocations than optimal cash auctions

wages rents and the quality of life this study focuses on the role of wages and rents in allocating workers to locations with various quantities of amenities the theory demonstrates that if the amenity is also productive then the sign of the wage gradient is unclear while the rent gradient is positive the theory is extended to include the housing market and nontraded goods these extensions require little modification of the conclusion the empirical work on wages shows that the regional wage differences can be explained largely by these local attributes with the use of site price data implicit prices are estimated and quality of life rankings for the cities are computed

neither miti nor america the political economy of capital liberalization in japan compared with japan no other industrialized country has so adamantly denied foreign investors direct access to its domestic markets japan continued to deny such market access until domestic constituencies finally championed foreign demands and successfully pressured a reluctant state for concessions the initiative for these concessions came neither from japan s principal government negotiators in the ministry of international trade and industry miti nor from public policymakers in america rather it came from american and other multinational corporations mncs seeking to exploit imperfect markets for the technology and related assets which they alone controlled and which a few japanese oligopolists demanded these local oligopolists served as manipulative intermediaries between mncs and the nationstate and in that position determined both the timing and the substance of their country s long march toward capital liberalization between the legislation of capital controls in 1950 and the de jure elimination of those controls in 1980 what began as an extension of limited concessions to individual mncs eventually aided by small regulatory loopholes gradually encompassed all foreigners supplying broad product groups during the intervening thirty years the mncs examined in this article including coca cola ibm texas instruments and the big three u s automakers finally gained limited access to the japanese market for them the formal liberalizations of the late 1960s and early 1970s proved significant but not always decisive as japanese oligopolists moved both to replace public regulations with private restrictions and to mesh their ongoing political influence domestically with their emerging economic power internationally thus de facto liberalization proceeded slowly and unevenly at least through 1980 and foreign direct investment in japan continued to languish what capital liberalization did occur had little to do with the pressures exerted on miti and the japanese state by the u s government and the international organizations that america then controlled rather american diplomacy proved successful in forcing concessions from japan only when it was backed up both by the economic power of american mncs and by the active support of japanese business

family migration and nonmarket activities in costa rica this study of family migration and nonmarket activities in a 10 sample of 4513 families drawn from the 1973 census of costa rica shows that differences in family characteristics can affect a familys mobility by changing a familys costs of producing household commodities or its ability to earn income at various locations many aspects of the familys nonmarket production are costly to transfer to a new location the relative complexity of family versus individual migration involves more than the simple observation that family ties increase the costs of a move not only does location have an impact on market income but it also plays a role in household production many aspects of household production may be highly region specific such as caring for children or aged adults providing for the childrens education and enjoying the company and support of friends and relatives higher husbands income may not be sufficient to compensate for the costs of transferring these activities to a new location differences in household technology represented by the education variables of the mothers play an important role in family migration as families resist moving from an area that has low input costs in the production of those commodities for which they have a comparative advantage families with a comparative advantage in producing educational commodities may be more likely to move to urban areas with better school systems and less likely to move in general the number of children and the investment in their education are negatively associated with migration the household production model allows the roles of women to be incorporated into migration analysis the characteristics of women appear to be important in determining household migration even though less than 6 of the women in the sample earn wage income they should not be ignored in migration studies the significant negative impact of the wifes education on migration attests to the dangers of ignoring the wifes role

the emergence of migration theory and a suggested new direction abstract the literature on internal labour migration is surveyed using a fourfold taxonomic scheme the potential migrant as presented in the existing literature can be viewed as a supplier of labour an investor in human capital and a consumer of regional amenities such as public goods the paper develops a fourth approach which treats the household rather than the individual as the migrating unit and which views the potential migrant as a producer of home produced commodities the continuities as well as the contrasts between the four approaches are discussed in the paper

japanese foreign economic policy formation explaining the reactive state the concept of the reactive state is useful in understanding the foreign economic policy behavior of japan and certain other middle range powers deeply integrated in the global political economy particularly during periods of economic turbulence when international regimes do not fully safeguard their economic interests the essential characteristics of the reactive state are two fold 1 it fails to undertake major independent foreign policy initiatives although it has the power and national incentives to do so 2 it responds to outside pressure for change albeit erratically unsystematically and often incompletely in the japanese case reactive state behavior flows from domestic institutional characteristics as well as from the structure of the international system domestic features such as bureaucratic fragmentation political factionalism powerful mass media and the lack of a strong central executive have played an especially important part in japanese financial energy trade and technology policy formation since 1971

new estimates of quality of life in urban areas implicit markets capture compensation for intraurban and interregional differe nces in amenities and yield differences in housing prices and wages these pecuniary differences become preference based weights in a qual ity of life index hedonic equations are estimated using microdata fr om the 1980 census and assembled county based amenity data on climati c environmental and urban conditions ranking of 253 urban counties reveals substantial variation within as well as among the 185 urba n areas the quality of life differences across counties within one s msa is almost one half of the difference between the top and bottom ranked counties in the nation copyright 1988 by american economic association

the globalization of liberalization policy diffusion in the international political economy one of the most important developments over the past three decades has been the spread of liberal economic ideas and policies throughout the world these policies have affected the lives of millions of people yet our most sophisticated political economy models do not adequately capture influences on these policy choices evidence suggests that the adoption of liberal economic practices is highly clustered both temporally and spatially we hypothesize that this clustering might be due to processes of policy diffusion we think of diffusion as resulting from one of two broad sets of forces one in which mounting adoptions of a policy alter the benefits of adopting for others and another in which adoptions provide policy relevant information about the benefits of adopting we develop arguments within these broad classes of mechanisms construct appropriate measures of the relevant concepts and test their effects on liberalization and restriction of the current account the capital account and the exchange rate regime our findings suggest that domestic models of foreign economic policy making are insufficient the evidence shows that policy transitions are influenced by international economic competition as well as the policies of a country s sociocultural peers we interpret the latter influence as a form of channeled learning reflecting governments search for appropriate models for economic policy

domestic institutions and the credibility of international commitment japan and the united states the domestic politics of great powers significantly influence the fate of such multilateral regimes at the general agreement on tariffs and trade and the north atlantic treaty organization unless great powers can make credible commitments to support those regimes few countries will offer more than token support domestic political constraints may bind national leaders to good faith adherence to multilateral regimes even if international circumstances do not compel adherence domestic politics also influence the ability of other countries to monitor national adherence to agreements case studies of u s and japanese responses to multilateral regimes show how the nature of the national electoral system the division of powers in the government and the transparency of the national political system influence credibility and lead to special features of multilateral economic and security regimes

a reexamination of the federal private wage differential in the united states the federal private wage differential is reexamined with recent data using specifications similar to those used in three previous studies i find that the federal private wage differential has narrowed since the 1974 79 period analyzed in those studies in addition i discover that wage differentials based on specifications used in the literature are biased upward because the previous studies did not control for detailed occupational and locational characteristics of workers corrected point estimates of the wage gap are much smaller than previous estimates in the literature differences in the gap across demographic groups occupations and locations are also discussed

family proximity childcare and women s labor force attachment we show that close geographical proximity to mothers or mothers in law has a substantial positive effect on the labor supply of married women with young children we argue that the mechanism through which proximity increases labor supply is the availability of childcare we interpret availability broadly enough to include not only regular scheduled childcare during work hours but also an insurance aspect of proximity e g a mother or mother in law who can to provide irregular or unanticipated childcare using two large datasets the national survey of families and households and the public use files of the u s census we find that the predicted probability of employment and labor force participation is 4 10 percentage points higher for married women with young children living in close proximity to their mothers or their mothers in law compared with those living further away

two level games and bargaining outcomes why gaiatsu succeeds in japan in some cases but not others one of the strengths of robert putnam s two level bargaining game model is its ability to capture how international negotiations make it possible for negotiators to pursue synergistic strategies aimed at improving their prospects for a favorable deal by reshaping politics in both their own and their counterparts domestic arenas while reaffirming the utility of this approach this article argues that putnam describes only some of the synergistic strategies available to negotiators in addition to reverberation and synergistic linkage a negotiator can also reshape politics in his or her counterpart s domestic arena in two other ways 1 by transforming decision making in ways that expand elite participation and bring the weight of public opinion to bear on policies that were previously dictated by small groups of privileged domestic actors and 2 by influencing the way in which policy alternatives are considered in the decisionmaking process through an examination of the structural impediments initiative a set of negotiations through which the united states applied a great deal of foreign pressure gaiaisu on japan the article makes the case for the above modifications to the putnam model and argues that participation expansion strategies are most likely to be successful when involvement in decision making before foreign intervention is limited and latent support for foreign demands exists outside the privileged elite while alternative specification is most likely to work when opportunities exist to link favored policy proposals to already recognized domestic problems

wages rents and amenities differences among workers and regions what explains persistent regional earnings differences this paper argues that regional differences in amenities can account for the wage differences in contrast cost of living variations do not account for wage differences but actually exacerbate them this conclusion results from a model in which variations in rents and wages are equalizing differences for amenity differences empirical results are consistent with the model

labor force migration and allocative efficiency in the united states the roles of information and psychic costs this paper examines the relative importance of information psychic and other costs of relocation as mitigating factors off sets to spatial earnings differentials within the migration decision the method employed for this examination is based upon 1 observation of relationships between the geographic allocation and personal characteristics of labor force migrants and 2 inferences drawn from these observations about the relative importance of various relocation cost components empirical analyses of the migration decision based upon this indirect method provide important insights on both the determinants and allocative efficiency of interstate labor force migration in the united states excerpt

the state as strategist in international business research no matter what strategy managers choose cross national differences in states strategic capabilities and objectives affect multinational corporations capabilities to manage interdependent operations in this paper we develop four attribute dimensions along which states strategic economic capabilities vary we then apply these dimensions to show how they contribute to familiar international business models of managerial process mnc strategy and organizational structure and country competitiveness

bidding with securities auctions and security design we study security bid auctions in which bidders compete for an asset by bidding with securities that is they offer payments that are contingent on the realized value of the asset being sold the value depends on investment by the winner thus creating the possibility of moral hazard such auctions are commonly used both formally and informally in formal auctions the seller generally restricts bids to an ordered set such as an equity share or royalty rate by restricting the bids standard auction formats such as first and second price auctions can be used in informal settings with competing buyers the seller does not commit to a mechanism upfront rather bidders offer securities and the seller chooses the most attractive bid based on his beliefs ex post we characterize equilibrium payoffs and bidding strategies in this setting and show that an informal mechanism yields the lowest possible revenues across all mechanisms we also determine the optimal formal mechanism and show that the security design is more important than the auction format we show that the revenue equivalence principle that expected revenues are independent of the auction format holds if the set of permissible securities is ordered and convex such as equity otherwise it need not hold for example when bidders offer standard debt securities a second price auction is superior on the other hand if bidders compete on the conversion ratio of convertible debt a first price auction yields higher revenues finally we examine how different forms of moral hazard impact our results