economic and spatial effects of land value taxation in an urban area an urban computable general equilibrium approach this paper studies the effects of switching from a capital property tax to a land value tax using an urban computable general equilibrium model calibrated to the features of the atlanta georgia area our model differs from prior simulation studies in that we assume that residents own a fixed amount of land rather than assuming an absentee landowner we consider three income groups rather than just one we consider cases in which housing capital is not completely mobile and we allow for a labor leisure choice

is there a double dividend from anti sprawl policies abstract this paper examines the welfare effects of anti sprawl policies such as development tax in a simple spatial explicit urban model with two market failures urban decline at the city core and underprovision of open space amenities at the urban fringe and pre existing distortionary property tax used to fund public services and improvements to mitigate urban decline consistent with prior double dividend literature there is a tax interaction effect that occurs between the development tax and the pre existing property tax however there are two fundamental differences between the tax interaction effect identified here and that of prior literature ours one has two components first there is a cost side tax interaction effect that is spatially concentrated at the urban fringe as only agents at the urban fringe alter their behavior in response to the development tax second there is also a benefit side tax interaction effect as increases in open space at the urban fringe are capitalized into housing prices throughout the city in contrast to prior literature we find that the empirical importance of the combined tax interaction effect is of substantially less importance and as a consequence the likelihood of a double dividend is higher than in prior studies further we show that the development tax should be part of the local tax system even in the absence of open space benefits

knowledge proximity and r d exodus abstract we explore not only how technological leaders and laggards react to agglomeration but within an agglomeration we look at how the relative presence of other leaders laggards and foreign firms affects these firms existing literature argues that technological leaders experience net knowledge outflows and are therefore losers in agglomerations however we do not know if they avoid locations with laggards more so than locations with leaders or vice versa thus we examine how the relative presence of each affects leaders location decisions for technologically lagging firms we argue they will prefer locations with leaders over locations with laggards we further posit that an increasing presence of foreign firms will have a particularly detrimental effect on technologically leading domestic firms as these lose out in the contest for talent contextualized in an emerging market with weak intellectual property rights protection we examine whether these concerns about knowledge spillovers and competition for talent prompt firms to close their r d facilities or remain open using 5798 observations of r d laboratories in india during 2003 2011 we find that while technologically leading firms are more likely to close their r d facilities as the presence of other domestic labs increases laggards are less likely to do so these findings suggest concerns over knowledge spillovers are present especially on the part of technologically leading firms moreover leaders are more concerned by the presence of other leaders technologically lagging firms by contrast are less likely to close r d facilities in the face of these concerns and will prefer staying near leaders over laggards finally we find evidence of foreign firms crowding out domestic technological leaders but not laggards in the competition for talent

comparative statics analysis of a fully closed city abstract this paper extends the existing comparative statics analysis about open or semiclosed cities notably that of w wheaton j econom theor 9 2 223 237 1974 to a fully closed city where urban land rent is redistributed to the city population specifically we examine the effects on changes in exogenous variables such as population size agricultural rent and initial endowments on endogenous variables such as welfare level city size and rent schedule most but not all of the existing results are reestablished surprisingly it is shown that in contrast to the existing literature and perhaps to intuition the city area may shrink when the city population increases the paper also extends the existing literature by analyzing the effect of the exogenous variables on the endogenous income and the demand for transportation it is shown that under plausible assumptions the quantity of transportation demanded declines with its price

the economics of urban sprawl theory and evidence on the spatial sizes of cities many commentators believe that the phenomenon of urban sprawl which is characterized by vigorous spatial expansion of urban areas is a symptom of an economic system gone awry by transforming pastoral farmland into often unattractive suburbs sprawl is thought to disrupt a natural balance between urban and non urban land uses leading to a deplorable degradation of the landscape this sentiment is often translated into policy through zoning restrictions designed to inhibit the conversion of land from agricultural to urban use see bryant and conklin 1975 the economist s view of urban expansion stands in stark contrast to this emotionally charged indictment of sprawl economists believe that urban spatial size is determined by an orderly market process which correctly allocates land between urban and agricultural uses the model underlying this view which was originally developed by muth 1969 and mills 1972 and more completely analyzed by wheaton 1974 suggests that urban spatial size is determined in a straightforward way by a number of exogenous variables by showing empirically that urban size is related to the given variables population income agricultural rent and commuting cost in the manner predicted by the model the present paper achieves two goals first the empirical results suggest that the economist s view of urban sprawl is justified rather than being determined by a process which indiscriminately consumes agricultural land urban sizes are the result of an orderly market equilibrium where competing claims to the land are appropriately balanced 2 second by confirming the urban size predictions of the underlying model the empirical results constitute yet another piece of evidence validating the basic framework of urban economic analysis 3 the plan of the paper is as follows section ii sketches the structure of the muth mills model and presents the main comparative static results relevant to urban sprawl with the model s predictions in focus section iii discusses the sample and the data and section iv presents the empirical results section v offers conclusions

complementarity and external linkages the strategies of the large firms in biotechnology in biotechnology large firms enter into different kinds of linkages with universities and small medium sized research intensive firms we test the hypothesis that the strategies of external linkage of the large firms with other parties are complementary to one another we show that if any two strategies are complementary i e undertaking more of one strategy raises the marginal value of the other then they are positively correlated using data for a sample large us european and japanese chemical and pharmaceutical producers we find that the strategies above are positively correlated even after controlling for firm specific characteristics

experimentation with strategy and the evolution of dynamic capability in the indian pharmaceutical sector this paper demonstrates that radical regulatory changes can be tantamount to technological revolutions by studying indian pharmaceutical firms it shows that radical regulatory changes such as the indian patent act of 1970 the new industrial policy of 1991 and the signing of trips trade related intellectual property rights system in 1995 served to open up new economic opportunities and constraints in the wake of which the winners and losers were selected as a function of the dynamic firm capabilities most appropriate for the new market environment

the economic lot size and relevant costs abstract in many accounting textbooks it is strongly argued that decisions should always be evaluated on relevant costs that is variable costs and opportunity costs surprisingly when it comes to economic order quantities or lot sizes some textbooks appear to be less straightforward the question whether described eoq models are in fact based upon variable costs and opportunity costs is generally not explicitly dealt with this paper will investigate relevant costs if lot sizes in a components manufacturing plant are changed the nature of opportunity costs is examined and several kinds of semi variable costs regarding the use of infrastructural capacity and material flow are discussed in this manner it is shown that in eoq models sunk costs are always included it also occurs that variable costs must be analyzed carefully this is also the case for more advanced models as described by for instance wagner and within or bertrand opportunity costs are in fact neglected which nevertheless is not always that dramatic as some authors suggest

causes of sprawl a portrait from space we study the extent to which u s urban development is sprawling and what determines differences in sprawl across space using remote sensing data to track the evolution of land use on a grid of 8 7 billion 30 30 meter cells we measure sprawl as the amount of undeveloped land surrounding an average urban dwelling the extent of sprawl remained roughly unchanged between 1976 and 1992 although it varied dramatically across metropolitan areas ground water availability temperate climate rugged terrain decentralized employment early public transport infrastructure uncertainty about metropolitan growth and unincorporated land in the urban fringe all increase sprawl

on the availability of relevant costs information in operations management abstract the operations management om function is amongst others held responsible for in time delivery of customer orders against minimal costs from a management accounting point of view all decisions which are made to fulfil this function can be evaluated against relevant costs this would imply that for each decision management must take into consideration all possible variable costs and opportunity costs at the operational level variable costs consist of capacity costs such as work in overtime and inventory carrying costs opportunity costs may arise if promised delivery dates cannot be met in practice this om function is often partially performed by materials management production management and or physical distribution management moreover in an engineer to order production situation engineering management and related areas e g process planning are also involved in each stage of production physical or non physical decisions concerning internal delivery dates utilization of capacity and inventory may occur research was carried out to find out whether management is actually provided with relevant costs information to evaluate these operational decisions therefore case study research in eight dutch industrial firms was carried out it concerned small to medium sized firms 80 250 employees firms all producing rather complex machines for industrial markets production control situations varied between assemble to order and engineer to order the case studies were carried out in a highly structured manner it occurred that all kinds of relevant costs information was missing or not known to the management in charge missing information concerned internal and external delivery performance actual inventory and wip levels and actual utilization of capacity furthermore it arose that all kinds of standards were unreliable from a management accounting perspective the results of the case study research indicate that relevant costs decision making is al least not very common in practice if relevant costs are partially missing managers will decide using other irrelevant information we feel that this might perhaps be an explanation for the growing discontent that the management accounting is confronted with

compact or spread out cities urban planning taxation and the vulnerability to transportation shocks this paper shows that cities made more compact by transportation taxation are more robust than spread out cities to shocks in transportation costs such a shock indeed entails negative transition effects that are caused by housing infrastructure inertia and are magnified in low density cities distortions due to a transportation tax however have in absence of shock detrimental consequences that need to be accounted for the range of beneficial tax levels can therefore be identified as a function of the possible magnitude of future shocks in transportation costs these taxation levels which can reach significant values reduce city vulnerability and prevent lock ins in under optimal situations

science institutions and markets developments in the indian biotechnology sector bagchi sen s and lawton smith h science institutions and markets developments in the indian biotechnology sector regional studies to be competitive indian pharmaceutical and biotechnology companies pursue both imitative and innovation based strategies some undertake contractual clinical research from multinationals now that product patents have replaced process patenting the barriers for innovation are the lack of funds and regulations government funding bodies have to reconcile the goals science for society versus science for profit the regulatory process e g time taken for drug approvals is in need of change in recent years the industry has become more regionalized states are proactive in promoting bioscience complexes through parks and institutes e g bangalore and hyderabad this has implications for clustered economic development bagchi sen s et lawton smith h la science les institutions et les marches des developpements dans le secteur de la biotechnologie en inde regional

measurable economic consequences of investments in flexible capacity abstract investments in flexible capacities are large it is not surprising that a solid economic infrastructure is a precondition from the strategic prospective the structural support will rest on qualitative grounds yet the central problem posed in the present article is how the economic consequences of investments in flexible capacities can actually be measured it is worked out in three steps to begin with the just in time concept is placed in an integral framework of goods flow control this is essential because it will be found that without this analysis there is a danger that the estimate of the positive effects will be too optimistic subsequently we introduce a concrete production situation lastly for the selected production situation the concrete economic consequences of a flexible capacity investment will be examined cor starting point is that the investment will in fact lead to an adjustment of the logistics concept for that reason the maximum just in time advantages can be realised at the same time the possible misrepresentation resulting from traditional costs calculation will be examined

property tax and urban sprawl theory and implications for us cities this article attempts a formal analysis of the connection be tween property tax and urban sprawl in u s cities we develop a theoretical model that includes households who are also landlords and land developers in a regional land market we then test the model empirically based on a national sample of urbanized areas the results we obtained from both theoretical and empirical analyses indicate that increasing property tax rates reduces the size of urbanized areas j e l classification h3 h71 r14

behaviors and housing inertia are key factors in determining the consequences of a shock in transportation costs this paper investigates the consequences of a sudden increase in transportation costs when household behaviors and building inertia are accounted for a theoretical framework is proposed capturing the interactions between behaviors transportation costs and urban structure numerical simulations show that changes in households and landowners choices reduce significantly the long term adverse effects of a shock in transportation costs indeed the shock translates over the long run into a more concentrated housing that limits households utility losses and maintains landowners income but because of building inertia the shock leads first to a long transition during which the adjustment is constrained by a suboptimal housing supply structure then households support larger losses than in the final stage though lower than with no behavior adjustment and landowners experience a large decrease in their aggregate income and an important redistribution of wealth thus behaviors and building inertia are key factors in determining the vulnerability to transportation price variability and to the introduction of climate policies our policy conclusions are that i if a long term increase in transportation costs is unavoidable because of climate change or resource scarcity a smooth change prevents to some extent the negative transition effects and ii fast growing cities of the developing world can reduce their future vulnerability to shocks in transportation costs through the implementation of policies that limit urban sprawl

modelling resource supply and demand expanding the utility of abc abstract users of cost management systems should be able to predict the economic consequences of their actions activitybased costing abc systems have proven useful to management for making operational changes based on resource usage but have failed to inform management about spending changes and consequently about profitability this is because abc was designed to measure the rate of resource demand not the rate of resource supply spending one of the most important established guides for performance measurement used by management investors and creditors is profit management uses profitability to evaluate proposed courses of action creditors use it to assess credit worthiness and investors use it to determine potential return traditionally costing systems have been designed to translate management decisions into pro forma balance sheets and income statements indeed the standard by which costing systems have been judged depends largely upon the accurate translation of management s actions into quantified statements of condition and performance a cost system which does not meet this standard is deficient this paper suggests that abc systems can be adapted to provide profitability information a method for modelling the relationship between resource supply and resource demand which permits activity based decisions to be evaluated in terms of their expected economic consequences is presented

technology expenditures factor intensity and efficiency in indian manufacturing the effects of expenditure on r d and purchase of technology on costs in indian manufacturing is investigated using firm level data expenditures for r d royalties and technical fees are treated as potentially inducing both hicks neutral efficiency shifts and substitution between capital and labor in an indirect cos t function framework the effects of technology expenditure are found to vary by industry by type of expenditure and by domestic or foreign origin of seller technology expenditures associated with higher levels of hicks neutral efficiency are generally also associated wit h higher capital labor ratios copyright 1992 by mit press

effect of urban proximity on agricultural land values this article seeks to more accurately estimate the size and distance of the effect of urban proximity on agricultural land values the econometric model lets the size and distance of the effect of urban proximity on agricultural land values vary by population real income and time the changes in the effect of urban proximity over time can be largely explained by population and income thus there does not appear to be a shift in preferences toward living further from the city center

the impact of higher standards in patent protection for pharmaceutical industries under the trips agreement a comparative study of china and india a comparative study is undertaken that explores chinese and indian pharmaceutical industries under different patent regimes it is found that relative to india which had implemented process patent protection until 2005 china with a product patent regime since 1993 suffers from both lower drug accessibility and availability the latter is a missing parameter in the literature also china lags behind in both lower r d investment and patents filed by chinese nationals based on these findings and associated legal interpretation we conclude that higher patent protection in china generates negative impacts on the pharmaceutical industries thus governments should utilise trips flexibilities and other regimes such as price control to offset the anticompetitive effect in designing patent policies

who is interested in biotech r d strategies knowledge base and market sales of indian biopharmaceutical firms this paper addresses three main questions on indian pharmaceutical firms that have integrated biotechnology in their marketing production or research activities i what kind of labour stocks of the knowledge base have an impact on market sales ii which components of the r d strategy are strategic substitutes and which are strategic complements iii what are the distinguishing features of firms that have already integrated biotechnology in their research activities the paper shows that market sales are an increasing function of qualified labour stocks internal r d and foreign collaborations are strategic substitutes while patents and publications are strategic complements firms that are active in biotechnology research are likely to be younger and implementing more aggressive learning strategies

explaining divergence in catching up in pharma between india and brazil using the nsi framework since the mid twentieth century the national objective of india and brazil has been to develop industrial capabilities in essential sectors such as pharmaceuticals at the outset they shared some common features a considerable period of lax intellectual property rights regimes a large internal market and a reasonably strong cadre of scientists and engineers however over sixty years india has had much more success in building indigenous capabilities in pharmaceuticals than brazil at least to date why in exploring the answer to this question we show that in both countries the design of state policy played a crucial role and the endogenous responses in the national system of innovation consisted of two parts on the one hand most of the time the predicted and desired outcome was partially realized and on the other hand there were invariably other unpredicted responses that emerged the latter unexpected elements which were specific to the two countries pushed them along distinctive trajectories

firm size opportunities for adaptation and in house r d activity in developing countries the case of indian manufacturing abstract this paper employs probit and tobit models to analyse the determinants of probability of undertaking r d activity and the intensity of r d expenditures for a sample of 291 indian manufacturing firms the empirical findings suggest that the probability of undertaking r d increases with the firm size only up to a certain level while r d intensity increases with it linearly competitive pressures export orientation and vertical integration influence the firms inclination to undertake r d favourably the technology imports r r relation is not dominated by either substitution or complementarity firms in chemicals and capital goods industries appear to attach greater importance to r d because of opportunities available to them for adaptation

sustainable infrastructure investment with labor only production abstract the purpose of this paper is to consider a partial equilibrium model for a sustainable infrastructure investment in a labor production economy we consider an inter temporal stackelberg game in a capital primitive economy where all capital investments are made by a central agency a government the government is assumed to have a number of objectives including sustainability of the infrastructure investments while firms are assumed to be myopic maximizing only current profits and paying taxes as a function of their returns both open loop and closed loop feedback stackelberg strategies are considered based on the analysis of the investment game some conclusions are drawn regarding the propensity to invest as a function of sustainability constraints the taxation rates and employment levels we then show that investments can tend to a constant level and thus strategic government goals of sustainability and employment growth can be planned only if labor costs and the general price index are steady or characterized by a set of conditions ensuring the attainability of the steady state investment

technology production and technology purchase in indian industry an econometric analysis an econometric analysis of the decisions of indian firms to invest in their own r d and to purchase technology through licensing agreements is undertaken these decisions are treated as being jointly determined by characteristics of indian industries indian prices and the supply of purchasable foreign technology the study finds that industrial structure firm size and public and private ownership influence the mix of own r d and technology purchase the pool of purchasable foreign technology indices both increased adaptive r d and technology purchase by indian firms copyright 1989 by mit press

investing in reduced setups in the eoq model this paper is motivated by the observation that the japanese have devoted much time and energy to decreasing setup costs in their manufacturing processes and that there has been little in the way of a formal framework available to use to think about such efforts the object of this paper is to begin to provide such a framework the framework developed identifies only one aspect of the advantages of reducing setups namely reduced inventory related operating costs the other advantages such as improved quality control flexibility and increased effective capacity are not accounted for in this paper nevertheless substantial reductions in setups may be warranted based solely on the benefits identified in this paper the approach taken here introduces an investment cost associated with changing the current setup level and adds a per unit time amortization of this cost to the other costs identified in the standard eoq model the general problem becomes that of minimizing the sum of a convex and a concave function in two special cases the minimization can be carried out explicitly in one of these cases numerous interpretations of the results are made including comparisons of japanese and american practices for example holding other parameters constant there is a critical sales level such that investment is made in reducing setups if and only if the sales rate is above that level when such investment is made the optimal lot size is independent of the sales rate the paper also addresses the joint selection of the setup cost and the sales rate selection of the sales rate is seen as incorporating explicit production and holding costs into the classical monopolist s pricing problem an explicit solution is obtained for the model postulated

effects of discounting and demand rate variability on the eoq the economic order quantity eoq formula is probably the most well known formula in inventory theory it determines the optimal value of the ordering quantity by minimizing the average cost in an ordering cycle it is based on the assumptions that there is a fixed lead time and a constant demand rate these assumptions are usually not fulfilled in practice especially when dealing with slow moving items demand seems to fluctuate furthermore since the time between two successive orderings is often large for slow moving items discounted costs instead of average costs should be minimized in this paper we determine the optimal ordering quantity if demand is modelled by a poisson process and the expected discounted costs are minimized we also analyze the case where demand is uniform and or the average cost criterion is used we give graphical presentations of the optimal ordering quantities besides easily determining the optimal values these allow us to show what the effects of changing the objective function and of changing the demand distribution are we derive a simple discounted cost ordering quantity formula denoted by eoq d for slow moving items we show that for items with a small demand rate and high fixed ordering costs the eoq d is much closer to the optimal discounted cost ordering quantity than the traditional eoq formula c 1998 elsevier science b v all rights reserved

economic evaluation of leadtime reduction abstract many companies have systematically worked on controlling and reducing leadtimes and have achieved impressive improvements further reduction of leadtime by such companies can only be achieved by relatively expensive projects in this paper the economic evaluation of such projects is discussed two important requirements for an economic evaluation of a project proposal for leadtime reduction are presented the first requirement is to carefully analyse the consequences of leadtime reduction a team that analyses the consequences should represent a variety of business functions e g marketing production logistics and engineering the second requirement is to use the right kind of economic criterion this criterion should be based on future cash flows caused by the leadtime reduction it will be demonstrated that product costs are inappropriate to evaluate the economic consequences of leadtime reduction this suggests that a decision about leadtime reduction should be made at the organisational level where managers are responsible for profits not just for product costs

dynamic version of the economic lot size model this article originally appeared in management science october 1958 volume 5 number 1 pp 89 96 published by the institute of management sciences a forward algorithm for a solution to the following dynamic version of the economic lot size model is given allowing the possibility of demands for a single item inventory holding charges and setup costs to vary over n periods we desire a minimum total cost inventory management scheme which satisfies known demand in every period disjoint planning horizons are shown to be possible which eliminate the necessity of having data for the full n periods

can the land tax help curb urban sprawl evidence from growth patterns in pennsylvania abstract urban sprawl has become a policy concern of national prominence one tool that has been suggested for combating sprawl is the land or split rate tax in theory such taxes can raise the ratio of housing capital to land this in turn can raise the density of housing units where it is applied if the average size of housing units does not increase enough to offset an effect on the number of housing units this research explores these issues looking at a panel of land uses and demographics in pennsylvania we confirm the theoretical prediction that the split rate tax raises the capital land ratio we also find that the primary effect is in more housing units rather than bigger units suggesting the split rate tax is potentially a powerful anti sprawl tool we find adoption of the split rate tax increases the number of housing units and that these units follow a more dense pattern of development

towards an integrated accounting framework for manufacturing improvement abstract the accounting world is confronted with criticism on the relevance of its practices this has led to improved allocation methods and improved methods for operational decision making until now few attempts are made to integrate these new accounting methods this paper presents an integrated accounting information framework to measure the economic consequences of manufacturing improvement decisions the notions resource consumption and resource spending are connected to build the framework within this context effectiveness efficiency and productivity improvement are redefined a project portfolio gives operations management the possibility to rank improvement projects based on magnitude timing and economic results