commutes neighborhood effects and earnings an analysis of racial discrimination and compensating differentials abstract recent tester studies indicate that minority workers face restricted residential and employment opportunities because of racial discrimination in housing and labor markets these restrictions may create a spatial mismatch between where urban minorities reside and where metropolitan area jobs are located resulting in reduced proximity of minority workers to jobs prior studies of racial discrimination and urban spatial mismatch however have paid little attention to the possibility that differences in employment commutes may be partially offset by compensating variations in neighborhood amenities quality adjusted house prices and earnings such effects could help to mitigate the impact of discrimination on minority workers using a unique subset of the 1985 and 1989 american housing surveys we estimate a fixed effects commute time model that controls for quality adjusted house prices neighborhood amenities and earnings results indicate that although blacks have longer commutes than comparably skilled white and asian workers roughly one third of the estimated difference is offset by neighborhood amenity and housing price differentials however even after controlling for neighborhood fixed effects and earnings educated black workers have significantly longer commutes than comparably skilled asian and white workers additional findings indicate that regardless of race household mobility is an important mechanism through which the market attains a spatial equilibrium providing further support for arguments that restricted proximity to residential opportunities and jobs reduces the economic welfare of minority households

do better schools matter parental valuation of elementary education the evaluation of numerous school reforms requires an understanding of the value of better schools given the difficulty of calculating the relationship between school quality and student outcomes i turn to another method and use house prices to infer the value parents place on school quality i look within school districts at houses located on attendance district boundaries houses then differ only by the elementary school the child attends i thereby effectively remove the variation in neighborhoods taxes and school spending i find that parents are willing to pay 2 5 percent more for a 5 percent increase in test scores this finding is robust to a number of sensitivity checks

on the equilibrium properties of locational sorting models abstract important to many models of location choice is the role of local interactions or spillovers whereby the payoffs from choosing a location depend in part on the number or attributes of other individuals or firms that choose the same or nearby locations in equilibrium this paper develops the equilibrium properties of a broadly applicable and readily estimable class of sorting models that allow location decisions to depend on both fixed local attributes including unobserved attributes and local interactions describes the conditions under which equilibria exist and are unique and provides a test for uniqueness in empirical analyses of sorting equilibrium

recreation demand and residential location abstract we use the properties of competitive location equilibrium to study the demand for recreation and the choice of primary residence location location specific recreation and employment lead to pooling equilibria in which consumers reside according to their preference for recreation in general the stronger the taste for recreation the greater the attraction of living close to the recreation site and the lower the demand for other goods including housing we explore the effects of trip frequency trip length and recreation cost on the spatial distribution of consumers we also consider the effect of the wage rate on recreation and location demands

the chaotic duopolists revisited the adjustment process of three oligopolists is studied under cournot and stackelberg action it is demonstrated that with an iso elastic demand function and constant marginal costs the system can result in periodic or in chaotic behaviour in particular the case with two identical and one different oligopolists is focused which turns into a virtual duopoly though displaying a wider set of bifurcations than can occur in genuine duopoly

earnings functions when wages and prices vary by location economists generally assume implicitly that the return to schooling is invariant across local labor markets we demonstrate that this outcome pertains if and only if preferences are homothetic a special case that seems unlikely our theory predicts that returns to education will instead be relatively low in expensive high amenity locations our analysis of u s data provides support for this contention returns to college are especially low in such cities as san francisco and seattle our findings call into question standard empirical exercises in labor economics that treat the returns to education as a single parameter

driving to opportunity local rents wages commuting costs and sub metropolitan quality of life we examine variation in local rents wage levels commuting costs household characteristics and amenities within metropolitan areas for 2071 areas covering the united states by density and central city status we demonstrate the sensibility of estimating wage levels by workplace not residence and recover decentralized rent gradients that fall with commuting costs we construct and map a willingness to pay index which indicates the quality of life typical households receive from local amenities when households are similar mobile and informed this index varies considerably within metros and is typically high in areas that are dense suburban sunny mild safe entertaining and have elevated school funding

evolutionary dynamics and backward induction the backward induction or subgame perfect equilibrium of a perfect information game is shown to be the unique evolutionarily stable outcome for dynamic models consisting of selection and mutation when the mutation rate is low and the populations are large

wage premia in employment clusters how important is worker heterogeneity this article tests whether the correlation between wages and concentration of employment can be explained by unobserved worker productivity residential location is used as a proxy for unobserved productivity and average commute time to workplace is used to test whether location based productivity differences are compensated away by longer commutes analyses using confidential data from the 2000 decennial census find that estimates of agglomeration wage premia within metropolitan areas are robust to comparisons within residential location and that estimates do not persist after controlling for commuting costs suggesting that the productivity differences across locations are due to location not individual unobservables

estimating the willingness to pay to avoid violent crime a dynamic approach the hedonic model which has been used extensively in the environmental urban and real estate literatures allows for the estimation of the implicit prices of housing and neighborhood attributes such as square footage local crime rates and school quality as well as households demand for these nonmarketed amenities a recognized drawback of the existing hedonic literature is that the models assume a myopic decision maker i e households do not look to the future when choosing where to live today in this paper we apply a dynamic hedonic model of demand to estimate the willingness to pay to avoid violent crime the existing literature based on sherwin rosen s seminal 1974 paper estimates households willingness to pay for a given amenity by taking advantage of the first order conditions for utility maximization i e by requiring that the marginal change in price associated with an increase in amenity consumption will be equal to the marginal utility associated with the increase given that these first order conditions are derived from a myopic utility maximization problem and not the maximization of a lifetime utility function the traditional model will yield unbiased estimates only under the assumption that households are not forward looking when they purchase a house considering the substantial transaction costs that are present in the real estate market both monetary and psychological this assumption is unlikely to hold in most real world applications bishop and murphy 2011 expand the existing hedonic framework by allowing households to be forward looking with respect to the amenities of interest in that paper the familiar

do capitalization effects for public goods reveal the public s willingness to pay this article develops a welfare theoretic framework for interpreting evidence on the impacts of public programs on housing markets we extend rosen s hedonic model to explain how housing prices capitalize exogenous shocks to public goods and externalities the model predicts that trading between heterogeneous buyers and sellers will drive a wedge between these capitalization effects and welfare changes we test this hypothesis in the context of changes in measures of school quality in five metropolitan areas results from boundary discontinuity designs suggest that capitalization effects understate parents willingness to pay for public school improvements by as much as 75

equilibrium selection in a nonlinear duopoly game with adaptive expectations abstract we analyze a nonlinear discrete time cournot duopoly game where players have adaptive expectations the evolution of expected outputs over time is generated by the iteration of a noninvertible two dimensional map the long run behavior is characterized by multistability that is the presence of coexisting stable consistent beliefs which correspond to nash equilibria in the quantity space hence a problem of equilibrium selection arises and the long run outcome strongly depends on the choice of the players initial beliefs we analyze the basins of attraction and their qualitative changes as the model parameters vary we illustrate that the basins might be nonconnected sets and reveal the mechanism which is responsible for this often neglected kind of complexity the analysis of the global bifurcations which cause qualitative changes in the topological structure of the basins is carried out by the method of critical curves

demand substitution across us cities observable similarity and home price correlation abstract this paper studies demand substitution in the context of us cities demand substitution occurs when individuals on the margin between certain city pairs affect demand patterns in the aggregate causing certain cities to be better substitutes than others using a discrete model of city choice i derive two predictions for migration flows and test them empirically using city to city migration data from the us census i show that cities which are similar on a variety of observable measures have higher levels of gross migration flows in the steady state and higher net migration flows in response to labor demand shocks finally i propose pairwise correlation in metropolitan home prices as a price based measure of substitutability and show that it contains substantial predictive power for migration flows relative to observable similarity

work location residence location and the intraurban wage gradient abstract the monocentric city model implies that work and residence locations are likely to be positively correlated and that wages decline with distance from the city center the first implication has not been explicitly tested before we provide strong support for it in census data for cleveland columbus dayton detroit indianapolis philadelphia and pittsburgh previous wage gradient estimates were hindered by lack of individual data on employment location and worker characteristics we solve this problem by estimating probit models that predict optimal work location and using the results to explain wages we find evidence of significant wage gradients

urban agglomeration effects and employment and wage gradients abstract when employment occurs at both central and non central points but firms have a preference to be near the center the rent gradient will decline and a wage gradient is necessary to compensate workers for more centrally located employment wage gradients and rent gradients are jointly determined the relationship between wage offer functions and the equilibrium wage gradient is derived the latter dependent on utility functions and commuting costs this is illustrated with a two sector model incorporating agglomeration economies in the export sector numerical solution reveals how agglomeration economies affect wages employment and city size

the shading and distancing of commerce when internalization is not enough abstract a political economy of degradation and of sustainability should account not only for the full range of production costs but the sources of those costs it should consider how the pursuit of wealth can deliberately or not lead to uncounted costs and unaccountable actors this article explores the conditions of cost generation and externalization especially those that are largely unintended and inadvertent it shows how the pursuit of wealth the expansion of markets the mobility of capital and the entanglements of production processes can lead to the unwitting generation and displacement of costs it analyzes competitive business strategy and patterns of production and consumption for their contribution to such costs business strategy and state policy tend to create a never ending search for frontiers however simulated and however unecological they may be the costs generated in those frontiers are a function of shading that is obscuring of costs and distancing the separation of production and consumption decisions both of which impede ecological and social feedback and create cognitive institutional and ethical lags between initial benefits and eventual full costs as distance increases along dimensions of geography culture bargaining power or agency negative feedback loops are severed stakeholders expand while decision making contracts environmental problems are displaced and shading and cost externalization increase the likelihood of sustainable resource use increases as distance is lowered as institutions locate decision authority in those who receive negative ecological feedback and who have the capacity and incentives to act on that feedback and as the burden of proof for economic interventions shifts to the interveners

a test for allocative efficiency in the local public sector abstract this paper develops a test for pareto efficiency in the local public sectorusing the analytical result that aggregate property value is maximized at the public output level which satisfies the samuelson condition for efficiency by using cross section data it is possible to deduce whether a representative community provides its public goods in a property value maximizing and hence efficient fashion the empirical results show no systematic tendency to either under or over provide public goods in a sample of massachusetts communities

cournot duopoly when the competitors operate multiple production plants this article considers a cournot duopoly under an isoelastic demand function and cost functions with built in capacity limits the special feature is that each firm is assumed to operate multiple plants which can be run alone or in combination each firm has two plants with different capacity limits so each has three cost options the third being to run both plants dividing the load according to the principle of equal marginal costs as a consequence the marginal cost functions come in three disjoint pieces so the reaction functions derived on basis of global profit maximization may also consist of disjoint pieces this is reflected in a particular bifurcation structure due to border collision bifurcations and to particular basin boundaries related to the discontinuities it is shown that stable cycles may coexist and the non existence of unstable cycles constitutes a new property we also compare the coexistent short periodic solutions in terms of the resulting real profits

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

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

spatial wage disparities sorting matters spatial wage disparities can result from spatial differences in the skill composition of the workforce in non human endowments and in local interactions to distinguish between these explanations we estimate a model of wage determination across local labour markets using a very large panel of french workers we control for worker characteristics worker fixed effects industry fixed effects and the characteristics of the local labour market our findings suggest that individual skills account for a large fraction of existing spatial wage disparities with strong evidence of spatial sorting by skills interaction effects are mostly driven by the local density of employment not controlling for worker heterogeneity leads to very biased estimates of interaction effects endowments only appear to play a small role

identifying productivity and amenity effects in interurban wage differentials this study focuses on the relative importance of amenity and productivity differences in determining wage differentials across urban areas the approach developed takes advantage of the connection between land and labor market clearing conditions required for locational equilibrium of households and firms data on recent movers are used to estimate equilibrium wages and rents for a sample of metropolitan areas this information is then used to identify amenity and productivity components of wages for each city in the sample using national estimates of the relative share of land in consumption and production differences in productivity and amenities are found to be roughly equal sources of wage variation across the sample

analysis of existing building energy saving policies in japan and china building sector accounts for a large percentage of the total national energy consumption in most of the countries thus it is critical to formulate and implement appropriate energy saving policies in the building sector this paper focuses on energy saving policies in the building sector by conducting a comparative study between japan and china the exiting building energy saving bes policies actual effectiveness of policy implementation and obstacles to the effective policy implementation are compared in sequence related policies are categorized into four groups control and regulatory instruments economic market based instruments fiscal instruments and information and voluntary actions policy effect analysis identifies that bes policies have promoted building energy saving in both japan and china obstacles comparison reveals that japan and china shared many obstacles including high transaction costs and lack of applicable methodology compared with japan china is suffering more obstacles such as inefficient enforcement insufficient levels of information and awareness and immature financial regulation system based on the previous findings common suggestions for overcoming these obstacles of bes policies in japan and china are presented such as the accurate methods of baseline identification and emission accountings innovative incentives and more capacity building activities distinct suggestions for japan and china are also added by considering their own situations so that both countries can further improve their bes policies

3 d sustainability an approach for priority setting in situation of conflicting interests towards a sustainable development abstract this paper aims to provide a new approach to objectively assess hierarchies and priority setting in the relationship between environmental social and economic sustainability within sustainable development after a literature review several widely used conceptual figures diagrams describing this relationship were assessed using swot analyses in order to identify the major weaknesses in these pictorial descriptions based on the findings a new concept called 3 d sustainability has been developed and is presented visually as well as is described in the text this concept introduces and ranks criteria for the assessment of hierarchies within and conflicts of interests between social environmental and economic sustainability the three dimensions of sustainability these criteria are applied to several existing hierarchies and solutions to conflicts of interests based on the swot analyses the main shortcomings of the widely used conceptual figures were identified as 1 misinterpretation of embeddings 2 misjudgement of equity between the three dimensions of sustainability 3 a lack of expression of limitations and 4 lack of adequate decision support these shortcomings are overcome theoretically and in practice by 3 d sustainability a slightly more complex but conceptually richer figure than the widely used conceptual figures assessed in particular the shift of the burden of proof within the three sustainability dimensions is argued as a main solution the application of the criteria of 3 d sustainability to several real examples indicates its usefulness in decision support while justifying more sustainable hierarchies and solutions in the settlement of conflicts of interests within the three sustainability dimensions

technological progress and sustainable development what about the rebound effect abstract sustainability concepts that rest on the idea of resource or energy efficiency improvements due to technological progress tend to overestimate the potential saving effects because they frequently ignore the behavioral responses evoked by technological improvements efficiency improvements also affect the demand for resources and energy and often an increase in efficiency by 1 will cause a reduction in resource use that is far below 1 or sometimes it can even cause an increase in resource use this phenomenon is commonly labeled the rebound effect which is well known among energy economists but never attracted much attention in ecological economics the paper starts with the traditional neoclassical analysis of the rebound effect in a partial equilibrium framework that concentrates on the demand of one particular energy service such as mobility or room temperature it also provides an overview of some of the main empirical studies based on this model that mostly confirm the existence of the rebound effect but are controversial about its actual importance however we have to go beyond the neoclassical single service model in order to take care of the variety of possible feedback affecting energy use the paper presents two important expansions of the single service model in order to show the potential relevance of the rebound effect to ecological economics first it is shown that in a multi services model it proves to be difficult to make general statements about the relevance of the rebound effect in this case the overall effect of an increase in energy efficiency on total energy use depends on the on the assumptions about the substitutability between the services considered and the direction of the income effect second the paper also tries to take care of the fact that changes in resource use or energy use are frequently just side effects of other forms of technological progress especially technological change of a time saving nature can have a large influence on energy use as many time saving devices for example faster modes of transport require an increase in energy consumption that is frequently reinforced by a rebound effect with respect to time this effect will be especially strong when wages are high and at the same time energy prices are low as is currently the case in most industrialized countries consequently the paper also provides a strong argument for the introduction of energy taxes

hedonic markets and sorting equilibria bid function envelopes for public services and neighborhood amenities abstract hedonic regressions with house value as the dependent variable are widely used to study public services and neighborhood amenities this paper builds on the theory of household bidding and sorting across communities to derive bid function envelopes which provide a form for these regressions this approach allows for household heterogeneity and multiple amenities yields estimates of the price elasticity of amenity demand directly from the hedonic without a rosen two step procedure and provides tests of hypotheses about sorting an application to cleveland area data from 2000 yields price elasticities for school quality and neighborhood ethnic composition and supports the sorting hypotheses

mobility and the return to education testing a roy model with multiple markets self selected migration presents one potential explanation for why observed returns to a college education in local labor markets vary widely even though u s workers are highly mobile to assess the impact of self selection on estimated returns this paper first develops a roy model of mobility and earnings where workers choose in which of the 50 states plus the district of columbia to live and work available estimation methods are either infeasible for a selection model with so many alternatives or place potentially severe restrictions on earnings and the selection process this paper develops an alternative econometric methodology that combines lee s 1983 parametric maximum order statistic approach to reduce the dimensionality of the error terms with more recent work on semiparametric estimation of selection models e g ahn and powell 1993 the resulting semiparametric correction is easy to implement and can be adapted to a variety of other polychotomous choice problems the empirical work which uses 1990 u s census data confirms the role of comparative advantage in mobility decisions the results suggest that self selection of higher educated individuals to states with higher returns to education generally leads to upward biases in ols estimates of the returns to education in state specific labor markets while the estimated returns to a college education are significantly biased correcting for the bias does not narrow the range of returns across states consistent with the finding that the corrected return to a college education differs across the u s the relative state to state migration flows of college versus high school educated individuals respond strongly to differences in the return to education and amenities across states

do inter city differences in intra city wage differentials have any interesting implications abstract recent research has related characteristics of cities to differences in the distribution of wages across workers with different skill levels we demonstrate that these differences in wage differentials arise naturally as a compensating variation in rosen s theoretical model of inter city wages for example if the income elasticity of demand for housing services is less than unity cities with higher house prices will have smaller money wage differentials between low and high skill workers this result has no implications for differences in either absolute or relative real productivity or welfare of unskilled workers similarly changes in the amenity of an urban area may result in changes in relative wages of skilled and unskilled workers with no implications for real productivity or welfare differentials empirical tests in which housing cost differentials are added as a determinant of inter city differences in an intra urban wage differential model provide empirical confirmation of the theoretical expectations it appears that intra urban money wage differentials differences in the quality of life and variation in the cost of living in each city are jointly determined variables just as rosen s model of inter city wage differentials predicts

on the dynamic efficiency of bertrand and cournot equilibria abstract this paper compares bertrand and cournot equilibria in a differentiated duopoly with r d research and development competition it shows that cournot competition induces more r d effort than bertrand competition however the price is lower and output is larger in bertrand than in cournot competition furthermore the bertrand equilibrium is more efficient than the cournot equilibrium if either r d productivity is low or spillovers are weak or products are very different if r d productivity is high spillovers are strong and goods are close substitutes then the bertrand equilibrium islessefficient than the cournot equilibrium journal of economic literatureclassification number l13

an empirical investigation of intraurban wage gradients abstract intraurban wage gradients have received little attention in the urban literature but have been shown theoretically to be important indicators of the spatial characteristics of urban economic activity this study examines the spatial distribution of wages of five groups of municipal public employees in the chicago smsa negative wage gradients significant at the 0 05 level are found for four of the five labor groups results show that monthly wages decrease on average as much as 24 per additional mile from the city center

understanding the city size wage gap in 2000 wages of full time full year workers were more than 30 percent higher in metropolitan areas of over 1 5 million people than rural areas the monotonic relationship between wages and city size is robust to controls for age schooling and labor market experience in this paper we decompose the city size wage gap into various components we propose an on the job search model that incorporates latent ability search frictions firm worker match quality human capital accumulation and endogenous migration between large medium and small cities counterfactual simulations of the model indicate that variation in returns to experience and differences in wage intercepts across location type are the most important mechanisms contributing to the overall city size wage premium steeper returns to experience in larger cities is more important for college graduates while differences in wage intercepts is more important for high school graduates sorting on unobserved ability within education group and differences in labor market search frictions and distributions of firm worker match quality contribute little or slightly negatively to observed city size wage premia in both samples

best response dynamics with level n expectations in two stage games this paper analyzes behavior in repeatedly played two stage games where players choose actions in both stages according to best replies using level n expectations about the opponent s actions in both stages level n expectations are recursively defined in a way that a player holding level n expectations correctly predicts the action of an opponent holding level n 1 expectations a general conceptual framework to study such dynamics for two stage games is developed and it is shown that contrary to results for single stage games the fixed points of the dynamics depend on the level of the expectations in particular for level 0 expectation fixed points correspond to a nash equilibrium of a simultaneous move version of the game whereas under certain conditions fixed points converge towards the subgame perfect equilibrium of the two stage game if the level of expectations goes to infinity the approach is illustrated using a two stage duopoly game where firms in the first stage invest in activities reducing their marginal costs and in the second stage engage in cournot competition conditions for local stability of the fixed points are derived for different levels of expectations and it is shown that level 2 expectations are sufficient to move the fixed point of the dynamics to a close neighborhood of the subgame perfect equilibrium furthermore it is demonstrated that although firms benefit from unilateral increases in the level of expectations an increase of n by all firms reduces all profits

quality of the business environment versus quality of life do firms and households like the same cities this paper develops a new measure of the quality of business environment that complements existing measures of the quality of life an annual panel of these measures is constructed and analyzed for 37 cities from 1977 to 1995 findings indicate that many cities attractive to firms are unattractive to households and vice versa in addition the size of a city s workforce increases with improvements in the quality of the business environment in contrast cities most likely to be dominated by retirees are those that are less attractive to firms additional specifications support theoretical arguments that retirees are drawn to cities in which local attributes are capitalized into lower wages rather than higher rents

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

estimating housing demand with an application to explaining racial segregation in cities we present a three stage nonparametric estimation procedure to recover willingness to pay for housing attributes in the first stage we estimate a nonparametric hedonic home price function in the second stage we recover each consumer s taste parameters for product characteristics using first order conditions for utility maximization finally in the third stage we estimate the distribution of household tastes as a function of household demographics as an application of our methods we compare alternative explanations for why blacks choose to live in center cities while whites suburbanize

estimates of the impact of crime risk on property values from megan s laws abstract we estimate the willingness to pay for reductions in crime risk using the location and move in dates of sex offenders we find significant effects of sex offenders locations that are geographically localized house prices within 0 1 miles of a sex offender fall by 4 percent on average we then use this finding to estimate the costs to victims of sexual offenses and find costs of over 1 million per victim far greater than previous estimates however we cannot reject the alternative hypotheses that individuals overestimate risks posed by offenders or that living near an offender poses significant costs exclusive of crime risk jel k42 r23 r31

searching for sustainability the poverty of spontaneous order abstract traditional approaches to sustainability rely on models that depend upon judgments of welfare across future generations right prices and some sense as to what future persons will find giving of utility these models both accept the spontaneous order of market processes and rely on that order to derive optimal consumption paths into the future sustainability is however not a problem of divining optimal paths predicated upon right prices rather sustainability to be operational requires a prior constructed order predicated upon rights for future persons and duties for those now living who sit in a position as dictator over the settings and circumstances that will be passed on to future persons rights based approaches to sustainability do not rely upon unknowable preferences of future persons but rather upon an environmental regency in which those now living agree to preserve settings and circumstances for the future this reminds us that the issue of sustainability concerns not how much to preserve but what to preserve

sustainable growth criteria minimum benchmarks and scenarios for employment and the environment abstract the relationship of economic growth and environmental impact has spurred fierce debates between growth optimists referring to the phenomenon of the environmental kuznets curve and pessimists referring to the limits to growth however no operational set of simple criteria has been developed so far to assess the sustainability of a given growth pattern this is all the more true for measures combining environmental and social criteria the paper undertakes to sketch out such criteria and to assess them by applying them to transdiciplinary sustainability scenarios and model simulations with panta rhei one of the most complex models of the german economy theoretical considerations as well as the empirical work with the model demonstrate that there are indeed trade offs between economic growth and environmental impacts and a positive correlation of growth and employment nonetheless it is still possible to develop carefully orchestrated strategies that combine economic competitiveness low unemployment rates and an easing of the pressure on the environment social and technical innovation reduced working time a modernised social security system green taxes and salary increases proportional to labour productivity growth are essential parts of any such strategy the triple effectiveness of such strategies regarding environmental social and economic sustainability is demonstrated by the model runs

neighborhood income distributions this paper studies the distribution of income within neighborhoods and contrasts it with the national income distribution it relies on a unique feature of the american housing survey whose 1985 1989 and 1993 waves of interviews provide data for small residential neighborhoods these consist of a dwelling unit and up to ten of its nearest neighbors most previous work on neighborhoods has used information for much larger groupings of the population such as census tracts the paper employs a variety of parametric and nonparametric econometric tools to study income sorting across us residential neighborhoods it documents the patterns of dependence among neighbors income and imperfect sorting with moderate but very significant correlation among incomes of neighbors and of considerable income mixing in u s neighborhoods

the 11 20 money request game a level k reasoning study we study experimentally a new two player game each player requests an amount between 11 and 20 shekels nis he receives the requested amount and if he requests exactly one shekel less than the other player he receives an additional 20 shekels level k reasoning is appealing due to the natural starting point requesting 20 and the straightforward best response operation nevertheless almost all subjects exhibit at most three levels of reasoning using two variants of the game we demonstrate that the depth of reasoning is not increased by enhancing the attractiveness of the level 0 strategy or by reducing the monetary cost of undercutting the other player

ends in view the capabilities approach in ecological sustainability economics while traditional scientific endeavor seeks to avoid the problem ecological economics and the broader emergent field of sustainability economics e se are explicitly grounded in a particular ethico moral assertion one that defines sustainability as a normative notion about the way how humans should act towards nature and how they are responsible towards one another and future generations baumgartner and quaas 2010 p 445 thus e se is neither a purely positive science nor is it a purely normative endeavor but it is what has been called relevant science baumgartner and quaas 2010 p 447 a key objective of e se is therefore said to be to study how ecosystems and human activity interrelate in terms that extend beyond functional and descriptive analysis of this interrelationship and towards explicitly incorporating this normative vision the result that is aimed for is a discipline that is constituted as the best possible approach to the science and management of sustainability

location housing and leisure demand muth s model of cbd employed household behavior has been successfully extended to include labor leisure choice in order to deal with the original version s deficient treatment of commuting time the extension demonstrates how all the basic results of the simpler formulation remain valid this paper provides a similar extension for the locally employed household variant of muth s model the analysis demonstrates a surprising difference between the demand gradient and comparative static results for the locally employed household without leisure choice and the locally employed household with leisure choice not observed for the cbd employed household model

envisioning shared goals for humanity a detailed shared vision of a sustainable and desirable usa in 2100 economics has been defined as the science of allocation of scarce resources towards alternative ends this definition implies that the first step in economic analysis is to determine what ends are desirable for society most sectors of the society would agree that sustainability is a desirable end but there is little agreement as to what a sustainable future would look like the university of maryland institute for ecological economics sponsored a democratic future search process designed to create a relatively detailed shared vision of a sustainable and desirable usa in the year 2100 this paper presents the vision developed at that conference examines the resources required to achieve the vision and assesses the suitability of market mechanisms for allocating the required resources towards the desired ends we find that markets are not efficient mechanisms for allocation in this case and propose the institutions of a strong democracy as a promising alternative 2002 elsevier science b v all rights reserved

local amenities and life cycle migration do people move for jobs or fun abstract do households move for jobs or fun and where do they go when they move we address these questions using the 1970 2000 us census based on a panel of quality of life and business environment measures households prefer msas in warm coastal areas and non metropolitan locations while firms prefer large growing cities in addition cities with improving business environments acquire increasing shares of workers especially workers with high levels of human capital cities with improving consumer amenities become relatively more populated by retirees further analysis of individual level migration decisions indicates that regardless of marital status young highly educated households tend to move towards places with higher quality business environments this tendency is especially pronounced among highly educated couples who are more subject to job market co location problems in contrast regardless of education couples near retirement tend to move away from places with favorable business environments and towards places with highly valued consumer amenities these patterns help explain why areas unattractive to both households and business have struggled as with upstate new york while the sun belt and other regions are thriving