one size fits all towards a differentiated regional innovation policy approach innovation has moved to the foreground in regional policy in the last decade concrete policies were shaped by best practice models derived from high tech areas and well performing regions these are often applied in a similar way across many types of regions here an attempt is made to show that there is no ideal model for innovation policy as innovation activities differ strongly between central peripheral and old industrial areas in this paper we analyse different types of regions with respect to their preconditions for innovation networking and innovation barriers based on this classification different policy options and strategies are developed

estimating local welfare generated by an nfl team under credible threat of relocation this study offers the opportunity to examine the welfare contribution of the minnesota vikings to minnesota households in the context of a credible threat of team relocation we find the credibility of the threat of relocation is essential to providing unbiased estimates of welfare this study utilizes contingent valuation methodology cvm and a random utility model rum to analyze minnesotans decision making mechanisms for supporting a new stadium initiative while previous studies have attempted to measure the welfare associated with a sports franchise we develop and discuss bias that may be imparted to estimates when the researcher fails to calculate a choke price further we develop an unbiased approach to identify welfare when respondents perceive a risk of losing the franchise the range of welfare contribution by the vikings to households in minnesota is 445 3 million to 1 571 3 million according to a 95 confidence interval based on our study

revealing preferences for leisure time from stated preference data when consumer choice is constrained by time as well as money willingness to pay can be defined with respect to either numeraire the two measures can be related formally within a utility consistent model of choice subject to two constraints furthermore when information is collected on both the respondent s marginal value of time can be identified a system of willingness to pay time and money and the marginal value of leisure time is estimated jointly in an application to california whalewatching and whale stock enhancement the empirical approach can be applied with only minor additions to survey techniques for nonmarket valuation

using revealed preferences to estimate the value of travel time to recreation sites the opportunity value of travel time vtt is one of the most important elements of the total cost of recreation day trips and arguably the most difficult to estimate most studies build upon the theoretical framework proposed by becker 1965 by using a combination of revealed and stated preference data to estimate a value of time which is uniform in all activities and under all circumstances this restriction is relaxed by deserpa s 1971 model which allows the value of saving time to be activity specific we present the first analysis which uses actual driving choices between open access and toll roads to estimate a vtt specific for recreation trips thereby providing a value which conforms to both becker s and deserpa s theoretical models using these findings we conduct a monte carlo simulation to identify generalizable results for subsequent valuation studies our results indicate that 3 4 of the wage rate provides a reasonable approximation of the average vtt for recreation trips while the commonly implemented assumption of 1 3 of the wage rate generates downward biased results

measuring the cost of time in recreation demand analysis comment in the february 1981 issue of the journal mcconnell and strand present a model of recreation demand in which the opportunity cost of an hour of travel to a recreation site is assumed not to equal the average hourly income of the recreating family they test the model with data from a 1978 survey of sportfishermen in the chesapeake bay region simply stated the model hypothesizes that the sportfishermen will behave as if the price of a recreational trip is the sum of cash costs and the opportunity cost of travel time this opportunity cost is hypothesized to be some ratio k of average family income per hour times the travel time mcconnell and strand estimate the value of k by regressing recreation days against cash costs and opportunity cost of time as separate variables the ratio of regression coefficients then is an estimate of k they go on to estimate the ratio k of the opportunity cost of travel to the average income for sportfishermen in the chesapeake bay region the authors hypothesize that the ratio k falls between 0 and 1 implying that sportfishermen value the time in transit lower than their average income when working sufficient conditions for k to equal one include a the tax rate is zero b marginal earnings are constant and c nonwork income equals zero this comment is written to point out certain aspects of the study which may have led to an underestimation of the value of k it is argued that mcconnell and strand have misspecified their demand equation in such a way that their estimate for k 612 is biased downward mcconnell and strand hypothesize the demand relation

industrial districts old wine in new bottles harrison b 1992 industrial districts old wine in new bottles reg studies 26 469 483 according to the theory of industrial districts a new wave of economic growth is being led in a number of regions in europe north america and east asia by spatially concentrated networks of mostly small and medium sized enterprises often using flexible production technology and characterized by extensive local interfirm linkages does this amount to a re emergence of the dominance of what urban and regional economists call agglomeration economies over the well known pressures on business to spatially disperse its operations neoclassical economic theorizing from marshall to perroux provides one perspective on the contemporary industrial district phenomenon another is afforded by granovetter s more recent elaboration of the ideas of embedding under and over socialization confronting each of these theoretical approaches with the other leads me to conclude that the industrial district prototypes involv

recreation evaluation using a characteristics theory of consumer behavior new recreation site or a site whose characteristics have been altered the computer based model is developed from lancaster s theory of consumer behavior and is applied to data from a group of australian ski areas to illustrate the procedural practicalities the estimated shifts in the demand curve for one ski area following specified but hypothetical changes in its characteristics are used to estimate changes in the site s consumers surplus as a basis for cost benefit analysis of these changes in characteristics

signals or noise explaining the variation in recreation benefit estimates this paper uses meta analysis to summarize the benefit estimates derived from travel cost recreation demand models after reviewing approximately 200 published and unpublished studies prepared from 1970 to 1986 77 were found to report either consumer surplus estimates or sufficient information to derive them using these estimates of the consumer surplus per unit of use from each study it was possible to evaluate the influence of variables describing the site characteristics the activities undertaken at each site the behavioral assumptions and the specification decisions the findings provide clear support for using econometric methods to summarize results from diverse empirical studies they highlight the important research issues in model development and offer a consistency check to the procedures used in benefit transfer analyses for policy evaluations

the value of information in risky markets discussion the three papers in this session illustrate well the breadth of the challenge posed to economists by the study of risk and information the theoretical research is filled with paradoxes and we are just now understanding existence uniqueness and stability of equilibria in these models research in these areas is quite difficult but also exciting in many respects information is what economic theory is all about once the fiction of complete arrowdebreu markets is dropped the applied economist faces additional problems of practical definition measurement and data thus empirical work is lagging significantly behind the theory the authors of these papers are to be applauded for collectively demonstrating both how far we have come and how much work there remains for the rest of us buccola s paper addresses fundamental issues of the efficiency of decentralized markets under risk he makes a good point that for full efficiency to hold two conditions are required markets must exhibit weak informational efficiency and the equilibrium price must be given by the competitive equilibrium i focus on the second condition with durable assets the relevant concept is an intertemporal competitive equilibrium path we know from the macroeconomic and capital theory literatures that it is perfectly possible for markets to incorporate available information and for spot markets to clear at each date yet for the economy to be on an inefficient path that does not converge to equilibrium in the long run the dynamic competitive equilibrium is even harder to compute than the static one this undermines the relevance of laboratory experiments this is closely related to the idea of a speculative bubble in which an asset s price does not equal its market fundamental and diverges farther from it over time rational expectations does not necessarily rule this out diba and grossman blanchard and watson where it does it eliminates this ki d of inefficiency by assuming that agents always act so that transversality conditions hold i can think of no very believable reason for this continuously to be so has the market for agricultural land a market not considered by buccola been subject recently to such a bubble and crash

the opportunity cost of travel time as a noisy wage fraction few issues are more important to welfare estimation with recreation demand models than the specification of the opportunity cost of travel time the two most common approaches to specifying this cost treat it as a fixed fraction of the recreationist s wage and either estimate the fraction done infrequently or assume it takes some value done commonly with references to results from the commute time literature used to justify the latter however these approaches lack firm conceptual rationales and the consequences of using them are not fully understood recognizing that information limitations often preclude more general approaches we use a joint recreation travel labor supply model to show that under relatively modest assumptions the opportunity cost of travel time can be expressed as a wage fraction with noise this formulation is straightforward to implement as part of random parameters based recreation demand models we then evaluate the welfare consequences of using the two approaches noted above which are special cases of the noisy wage fraction specification our results suggest that the more critical restriction to relax in opportunity cost of travel time specifications is the absence of noise rather than the specific level of the wage fraction

separability and the shadow value of leisure time recreation choices are often viewed as short run decisions conditioned on longer run labor supply using weak separability to reflect this relationship the wage rate is the shadow value of time for individuals who get no utility from work whether or not they are observed to be trading time for money in the short run this result widens the circumstances under which the wage rate not some fraction thereof is the theoretically correct shadow value of time modifications to such a conclusion are developed for cases in which work is a source of utility and in which the first stage choice is not continuous

rational expectations in stationary linear models linear time series models have come to dominate the macroeconomic literature on rational expectations and equilibrium business cycle theory but the explicit solution of such models has generally required strong restrictions upon the exogenous process of stochastic shocks e g temporal independence as well as upon the values of various demand and supply elasticities this paper exhibits a solution technique the method of z transforms which does not require one to impose such restrictions the value of this method is illustrated by applying it to completely characterize the symmetric stationary rational expectations equilibria of a naive linear model of land speculation this approach also permits systematic study of the informationally asymmetric equilibria of the model this paper develops a method for analyzing rational expectations re equilibria in linear economic models the methods i shall discuss usually enable one to determine whether or not a given model has a re equilibrium and if one exists to exhibit an explicit expression for the stochastic process of equilibrium prices the techniques apply to linear models driven by stationary processes of exogenous random shocks

recreation demand choices and revealed values of leisure time i introduction at least since the work of becker 1965 it has been recognized widely that time may play an important role in consumer demand one of the areas where this may be most significant empirically is in the valuation of natural resource amenities through their associated recreation demands a principal reason is that recreation is a time intensive commodity so that the value of the time spent in recreation would be expected to play a large role in its overall value the potential bias to consumer s surplus estimates of the net economic value of recreation from excluding time prices from the demand model has been recognized from the outset for example by knetsch 1963 and clawson 1959 to incorporate time into recreation demand models researchers have generally adopted the practice suggested by mcconnell 1975 of defining the full price of recreation as the money cost of a trip plus its monetized time cost though the use of full budgets also called for by the becker approach is less widespread bockstael et al 1987 pointed out quite clearly that both full budgets and full prices are required in the demand function if the recreationist is jointly choosing labor supply with recreation at an exogenous marginal wage but that the structure of demand was unclear if the individual was not making such marginal labor supply choices i e if he or she was working fixed hours subsequently larson and shaikh 2001 showed that the full prices full budgets specification is sufficient to satisfy the constraints on demand parameters that arise because choice is made subject to two binding constraints regardless of the individual s position in the labor market they also pointed out that models that use full prices but only money income in effect ignoring the role of time as a resource constraint cannot be consistent with the requirements of choice subject to two constraints although the outlines of how time should enter the structure of demand are becoming clear a major unresolved issue is how to determine its value in practice several studies have followed the basic logic of becker s early work assuming that the opportunity cost of recreation time i e the value of other time forgone in favor of recreation is an exogenous parameter such as the average wage rate or more commonly some fraction thereof this fraction is either chosen arbitrarily or estimated as part of the recreation demand model as in cesario 1976 mcconnell and strand 1981 and smith et al 1983 such assumptions may be erroneous for a variety of reasons assuming the average wage is the appropriate opportunity cost of time presumes that the individual faces no constraints on hours worked derives no utility or disutility from work and has a linear wage function as has been noted by chiswick 1967 bockstael et al 1987 and smith et al 1983 this is unlikely to be true for many people assuming some constant fraction of the wage is the opportunity cost of time especially an arbitrarily chosen fraction also seems likely to be incorrect for most people for all of these reasons an individual s average wage does not necessarily reveal anything about the shadow value of discretionary leisure time either as an upper or lower bound in a recent advance feather and shaw 2000 adapted the heckman 1974 labor supply model to include information supplied by recreationists about their labor supply status in particular whether they felt under or over employed relative to their desired number of hours this information is used to identify subgroups in the data for which the shadow value of leisure time is less than the wage or more than the wage which helps in the estimation of both a wage function and a shadow value of leisure time function this approach produces individual specific estimates of the opportunity cost of leisure time based on their demographics and labor market decisions which are used in a subsequent recreation demand analysis

time is money improved valuation of time and transportation costs the proper valuation of time isimportant for estimating the demand for severaleconomic goods this paper explores the propervaluation of time when estimating recreationaldemand where time costs represent asubstantial portion of the purchase price toestimate demand this paper uses a travel costframework to analyze actual behavior revealedpreference data and hypothetical behavior stated preference data which is induced byhypothetical increases in access fees traveltime and travel distance by comparing theresponses to these three contingencies theanalysis adjusts and improves the valuation oftime costs as evidence of this improvement this analysis demonstrates a great increase inthe consistency between the revealed and stateddata similarly this paper improves thevaluation of transportation related costs

endogenously chosen travel costs and the travel cost model an application to mountain biking at moab utah the travel cost model is frequently used to estimate net willingness to pay for recreation at remote sites by using the visitor s travel costs as a proxy for the price of recreation however some concern has been raised over the validity of using the visitor s stated travel costs as a proxy for price this paper addresses some of these concerns by examining the possible over estimation of consumer surplus due to endogenously chosen travel costs this paper extends past theoretical work for the linear model by developing a correction for endogenously chosen travel costs in more commonly used nonlinear models such as the poisson or count data model also provided is the first empirical test of the presence of endogeneity and an estimate of the magnitude of the error from ignoring endogeneity in travel costs after applying this test and the correction to data that was gathered for mountain biking at moab utah the estimate of consumer surplus falls from us 153 to us 135 which is a 12 reduction

searching for the opportunity cost of an individual s time a traditional assumption made in the literature is that the value of an individual s time spent in any activity is equal to his or her wage rate this result stems from the derivation of the value of leisure time in the context of the standard labor supply model this paper pre sents some reasons why the relationship be tween the wage rate and the value of time does not hold suggestions for what to do when the relationship breaks down and the investigator needs some value to impute to the individual are given in the final section of the paper

introduction epistemic communities and international policy coordination the growing technical uncertainties and complexities of problems of global concern have made international policy coordination not only increasingly necessary but also increasingly difficult if decision makers are unfamiliar with the technical aspects of a specific problem how do they define state interests and develop viable solutions what factors shape their behavior under conditions of uncertainty what are the origins of international institutions and how can we best study the processes through which international policy coordination and order emerge while a variety of analytic approaches have been used to address the problems of international cooperation the approaches have yielded only fragmentary insights at its core the study of policy coordination among states involves arguments about determinism versus free will and about the ways in which the international system is maintained and transformed among the overlapping topics of debate are whether national behavior is determined or broadly conditioned by system level factors unit level factors or some complex interplay between the two whether state policymakers can identify national interests and behave independently of pressures from the social groups they nominally represent and whether states respond consistently to opportunities to create defend or expand their own wealth and power to enhance collective material benefits or to promote nonmaterial values a related question of

a dual approach to modeling corner solutions in recreation demand abstract the dual approach of lee and pitt to estimating demand systems for which individuals often choose not to consume one or more of the available goods provides a utility consistent framework for estimating preferences over visits to recreation sites because of the complexity of the model however this approach has not been applied in the recreation demand literature this paper provides the first application of the model to recreation demand and develops a methodology for conducting welfare analysis relying on monte carlo integration to derive estimates of compensating variation the methods are applied to the demand for fishing in the wisconsin great lakes region

institutional conditions and innovation systems on the impact of regional policy on firms in different sectors moodysson j and zukauskaite e institutional conditions and innovation systems on the impact of regional policy on firms in different sectors regional studies this paper deals with institutional conditions in regional innovation systems how institutions affect the organization of innovation activities among firms and in what ways regional policy initiatives can be supportive the analysis draws on data on innovation networks activities and regional policies targeting the life science media and food industries in scania sweden the study takes account of the ways in which regional policies can impact individuals and organizations action in relation to each other by being internalized it is argued that such ability is decisive for the success or failure of the policy initiative

rational expectations equilibrium with conditioning on past prices a mean variance example abstract the paper uses an intertemporal mean variance model of the market for a dividend paying risky asset to analyse rational expectations equilibria when all agents condition their expectations on past rather than current prices the main result shows that if the time span between successive market periods is short the market will approximate full informational efficiency arbitrarily closely yet the returns to being informed are bounded away from zero this contrasts with the grossman stiglitz proposition that markets cannot come close to informational efficiency if the acquisition of information is costly

measuring the cost of time in recreation demand analysis an application to sportfishing since the work of cesario and knetsch economists have recognized that the opportunity cost of time plays an important role in determining the demand for outdoor recreation the opportunities one has for spare time are more significant for consumption of time intensive outdoor recreation activities than for other commodities especially nondurables bishop and heberlein illustrate the overwhelming importance of time costs to final recreational values total consumer surplus is nearly four times as large when time costs are added at half the income rate as when time costs were set at zero p 21 despite the recognition economists have neither successfully integrated the costs of time with the methods of recreational demand analysis nor reached a consensus on how it should be measured brown charbonneau and hay state finally the apparently crucial importance of how opportunity cost of time is handled needs further work while we are convinced it is an appropriate concept exactly how it should be included and measured s remains to be determined p 24 several approaches have been taken to include it in the travel cost method one approach brown and nawas gum and martin suggests that time in transit be considered as a separate independent variable another approach bishop and heberlein brown charbonneau hay nicols bowes dwyer cesario and knetsch measures the cost of time and adds it to other costs several approaches have been suggested to measure time costs one approach is simply to choose an hourly wage e g 2 00 per hour or perhaps the minimum wage rate a more flexible but still ad hoc approach is to use some proportion of the individual s wage rate as the opportunity cost of time nichols bowes dwyer the proportion is usually taken from independent studies and used to value the travel time this approach is better than using a constant opportunity cost of time because it allows variation across individuals it suffers because the choice of the percentage of the wage rate is arbitrary independent of the sampled population cesario has discussed the consequences of ignoring time costs and the differences in values arising from alternative measurement approaches in this paper we argue that the opportunity cost of time is some proportion of the individual s market wage rate or income per hour and that this proportion can be determined from sample data this method permits the proportion to vary from one study to another rather than imposing either an arbitrary estimate or one from a sample different from the study s sample

the dynamics of innovation from national systems and mode 2 to a triple helix of university industry government relations abstract the triple helix of university industry government relations is compared with alternative models for explaining the current research system in its social contexts communications and negotiations between institutional partners generate an overlay that increasingly reorganizes the underlying arrangements the institutional layer can be considered as the retention mechanism of a developing system for example the national organization of the system of innovation has historically been important in determining competition reorganizations across industrial sectors and nation states however are induced by new technologies biotechnology ict the consequent transformations can be analyzed in terms of neo evolutionary mechanisms university research may function increasingly as a locus in the laboratory of such knowledge intensive network transitions

innovation dynamics of global competitive regional clusters the case of the norwegian centres of expertise isaksen a innovation dynamics of global competitive regional clusters the case of the norwegian centres of expertise regional studies this paper analyses the innovation dynamics in six regional clusters that have been appointed as norwegian centres of expertise and have been assessed as some of the most internationally competitive regional clusters in norway the most consistent finding concerns the great importance of strong norwegian innovation systems in the maritime and oil and gas industries in underpinning the innovation dynamism of these clusters this finding has some theoretical implications because the national level is mainly absent in the discourse on local buzz knowledge spillovers inside the cluster boundaries and global pipelines international relations and knowledge flows what remains as an important local factor is the historically developed unique competence of firms which is strengthened by the fact that locally sited state owned higher education and research institutions ha

on the commodity value of travel time in recreational activities the allocation of individual time can have a commodity value if the use of time is enjoyable this paper investigates the commodity value of travel time in recreational activities the study focuses on recreational boating in east texas after specifying a model of multisite recreational demand for boating the commodity value of travel time to each site is estimated implications of the results for the analysis of outdoor recreation are discussed