bluuebunny/crossref_metadata_2025 huggingface dataset:
Pork-Barrel Spending and State Employment Levels: Do Targeted National Expenditures Increase State Employment in the Long Run?
Authors: Klingensmith J. Zachary
Published: March 2021

Pork-barrel spending is defined as a project that is funded by the national tax base and yet only benefits a small, localized population. Anecdotally, this type of spending is often criticized as short-sighted, inefficient, and wasteful. This paper is designed to determine whether pork-barrel spending is a driver of state economic growth, both state employment and gross domestic product, despite criticism to the contrary. I find that pork-barrel spending does have an effect on employment, but this effect is temporary.
Book Reviews
Authors: Dunn Leslie , Dunn Robert
Published: March 2021

“The Oil Curse: How Petroleum Wealth Shapes the Development of Nations” is reviewed by Annie Walker. “Emissions Trading as a Policy Instrument: Evaluation and Prospects” is reviewed by Xueting Zhao. “Giving Kids a Fair Chance (A Strategy that Works)” is reviewed by Joshn Hall. “Conservation Catalysts: The Academy as Nature’s Agent” is reviewed by John M. Halstead.
Silence is Golden: Railroad Noise Pollution and Property Values
Authors: Walker Jay K.
Published: March 2021

This paper uses aunique dataset containing property values and manually collected noise measurements in Memphis, Tennessee to estimate the impact of train noise pollution on commercial and residential property values. Results show that a residential property exposed to 65 decibels or greater of railroad noise results in a 14 to 18 percent decrease in property value. Once a 65 decibel measure is included, there is no additional impact on price of distance to the closest railroad crossing. For commercial property, neither crossing proximity nor noise level significantly affect property value. The results provide evidence of a negative externality that is created by railroad noise for households and the need for more exact measures of noise levels. The findings are also consistent with previous literature suggesting firms have different ideas than individuals about desirable locational attributes.
Are Industry Clusters and Diversity Strange Bedfellows?
Authors: Jackson Randall
Published: March 2021

In this address, I review industry clustering and diversification strategies to compare and contrast their underlying foundations. The lack of a consensus choice of one or the other for regional economic development strategies along with the recognition that in the dynamic process of development these two processes are related leads me to conclude that clusters and diversity need not be such strange bedfellows after all, and that a rational approach to economic development can leverage the strengths of each and offset weaknesses. I follow this discussion by introducing a cluster assessment diversification strategy (CADS) apparatus that can be used to measure existing cluster strength, identify industrial strengths and deficit bottlenecks, and explore the regional consequences of potential cluster diversification strategies.
Square Dancing with the Stars to Enhance Dynamic Hirschman Linkages?
Authors: Lahr Michael L.
Published: March 2021

In this Presidential Address, the author takes the reader on a reconnaissance of his life and time as a regional scientist. He points out scenery he found scintillating along the way, hoping that some may pick up the banner and chew on a few of the ideas for a while. He suggests a revisit to Albert O. Hirschman’s notion of key sectors and more empirical analysis related to Marcus Berliant’s and Masahisa Fujita’s notion of knowledge creation and transfer.
A Multiregional Dynamic CGE Model of Growth Oriented State Tax Reforms: An Application to Georgia and Five Comparison States
Authors: Condon Jeffrey , Feltenstein Andrew , Plassmann Florenz , Rider Mark , Sjoquist David L.
Published: March 2021

A number of U.S. states are considering tax reforms that would significantly reduce or eliminate income taxes and recover the lost revenue by increasing its sales taxes. To gauge the economic effects of such reforms, we construct a multi-regional, dynamic, open economy, general equilibrium (CGE) model. Our model is an advancement over existing regional CGE models used to simulate the impact of state tax reforms in the U.S. context. We simulate the impact of a variety of tax reforms and find that Georgia’s economy benefits but at the expense of the five comparison states we include.
Are There Key Sectors? An Appraisal Using Applied General Equilibrium
Authors: Cardenete M. Alejandro , Lima M. Carmen , Sancho Ferran
Published: March 2021

An extension of the hypothetical extraction method to a general equilibrium setting is considered. This has the advantage of re-interpreting output changes as efficiency gains or losses, which may be of use in identifying “key” sectors in an interconnected economy. The categorization may be relevant for the evaluation of intersectoral synergies and for improving policy planning and orienting economic strategy. We argue that the standard measures based on gross outputs may not capture all of the relevant impacts and this is so because of some self-imposed modeling and accounting limitations. An economy-wide Computable General Equilibrium (CGE) approach provides a modeling platform that overcomes these limitations since it offers (i) a more comprehensive measure of linkages and (ii) an alternative way of accounting for linkages’ relevance that is in closer accordance with the standard statistical magnitudes used in national or regional accounts.
Revisiting Evidence of Labor Market Discrimination against Homosexuals and the Effects of Anti-Discriminatory Laws
Authors: Christafore David , Leguizamon J. Sebastian
Published: March 2021

Anti-discrimination laws on the basis of sexual orientation have been adopted by many states to counteract perceived discrimination in the labor market. However, we find the evidence of earnings disparities between homosexual and heterosexual men to be extremely sensitive to the choice of reference group. Relative to married heterosexual men, gay men earn less, and, over time, anti-discriminatory laws lessen this gap. Relative to unmarried, coupled heterosexual men, however, gay men experience similar levels of earnings. The choice of reference group leads to opposite conclusions regarding the

effectiveness and necessity of an anti-discriminatory law for homosexual men, which highlights the need to construct reference groups with care. We also find that homosexual women experience similar earnings to their heterosexual female counterparts, and the law has no effect on these relative wages.
Book Reviews
Authors: Leguizamon J. Sebastian , Leguizamon Susane
Published: March 2021

“Achieving Development Success: Strategies and Lessons from the Developing World” is reviewed by Leslie Dunn. “Media Clusters: Spatial Agglomeration and Content Capabilities” is reviewed by Robert Dunn. “Paying for the Party: How College Maintains Inequality” is reviewed by Alexander Olson.
An LP-SAM Approach for Examining Regional Economic Impacts: An Application to Wildfire Disasters in Southeast Oregon
Authors: Kim Man-Keun , Zhu Erqian , Harris Thomas R. , Alevy Jonathan E.
Published: March 2021

Assessment of regional economic impacts can be accomplished using either an input-output analysis or a social accounting matrix (SAM) analysis. While these approaches can generate important insights, they have significant limitations for some cases, e.g., the event of the need to reallocate limited resources such as land, labor, etc., because they do not include a complete set of decision makers’ activities and managerial options. This study develops a flexible approach to link the firm level linear programming model to regional economic models to overcome these limitations, a LP-SAM. To demonstrate the LP-SAM a ranch-level economic model is linked to the regional SAM to investigate the impact of wildfire on the southeastern Oregon. The LP-SAM successfully traces out the decision makers’ responses to wildfire and also regional economic impacts.
A Tale of Two Shale Plays
Authors: White Nancy E.
Published: March 2021

This paper offers insights into the role for regional science and regional scientists in analyzing shale-energy development. The stories described are drawn from popular press accounts of the Bakken Basin in North Dakota and the dry-gas-producing counties of the Marcellus Shale in Northern and Central Pennsylvania. The comparison of the two shale plays highlights housing, labor market, and fiscal issues for these two locations.
Sample Selection in Appalachian Research
Authors: Douglas Stratford M. , Walker Anne W.
Published: March 2021

The Appalachian Regional Commission’s definition of the Appalachian region is the one used most often by researchers, politicians, and the popular press. The uncritical use of this definition of Appalachia raises issues of both selection bias and excess heterogeneity in regression analysis of Appalachian income and growth. The ARC was created as part of President Johnson’s war on poverty, and the geographical extent of its purview has been driven by politics and by the geography of poverty, neither of which is exogenous. It is well known that the use of endogenous variables to choose a sample creates bias and inconsistency in estimation of regression coefficients. To identify the counties that belong to the Appalachian region exogenously we use an algorithm based on three criteria: topography, contiguity, and prevalence of slavery in the 1860 census. We apply our sample to growth regressions using data from 1970 to 2008, addressing the question of the existence of a resource curse from coal extraction. For this model we find strong evidence of excess heterogeneity, but not bias.
Mark S. Henry (1946-2012)
Authors: Barkley David
Published: March 2021

This paper discusses the contributions of Mark S. Henry to the field of regional science
Transactions Costs and Readership: An “Open” Letter to Our Readers
Authors: Burkey Mark L. , Lahr Michael L.
Published: March 2021

Introducing a new co-Editor, new (permanent) journal website, becoming an open access journal, indexing on RePEc, SRSA’s 50th Anniversary, and more!
Advancement of Knowledge: A Journey through Space and Time
Authors: Cushing Brian
Published: March 2021

Presumably, advancement of knowledge is a primary goal of virtually all “academic” scholars, whether from universities, government agencies, or elsewhere. Likewise, a primary function of academic organizations, such as the Southern Regional Science Association and Regional Science Association International, is to enable scholarly interaction that supports this goal of advancing knowledge. This paper focuses on two important aspects of advancement of knowledge as they relate to the regional science community and its scholarly organizations. The first, interdisciplinary interaction, has always been a key attraction to regional science, but a characteristic that has weakened in recent times. Especially given the nature of many issues studied in regional science, it is important to recommit to expanding the interdisciplinary reach of the discipline. The second, mentoring and supporting development of scholars, especially young scholars, continues to be a strength of the regional science discipline. We must make sure that this characteristic gets passed on to future generations of regional science scholars.
Book Reviews
Authors: Lipscomb Clifford A.
Published: March 2021

“The New Economy and the Modern South” is reviewed by Bernard L. Weinstein. “The Strategic Value of Social Capital: How Firms Capitalize on Social Assets” is reviewed by Clifford A. Lipscomb. “Efficiency, Market Dynamics, and Industry Growth” is reviewed by Peter V. Schaeffer.
Institutions and C omparative Regional R esearch
Authors: Stallman Judith I.
Published: March 2021

When I started to think about the topic of this paper/talk, I sat down with some colleagues and threw out a few general ideas to get their reactions. I envisioned days devoted to reading and hours thinking profound thoughts as I prepared it. I do not know why I had this fantasy. Long ago I learned that days devoted to reading are a luxury; something that surprises friends and family who are not professors.

But I found my thoughts turning more to the everyday than the profound. As a result, this is a more personal view of regional science, which draws on my experiences and my training in both institutional economics and regional economics. I will start with some of those experiences and the questions they raised for me about the importance of institutions in regional development and some of the difficulties of doing comparative regional research. While I include regions at many levels of aggregation, my particular interest is how to incorporate institutions into the analysis of regional differences in economic development. I want to explore what literature and methods are out there that can provide insights into better ways of incorporating institutions into comparative regional research.
Geographic Access and Demand in the Market for Alcohol
Authors: Burkey Mark L.
Published: March 2021

Policy in many regions restricts geographic access to alcohol by reducing the number of outlets where alcohol is available for purchase. In previous studies, imprecise measures of access and the lack of a theoretical framework have caused improper economic interpretations of how reducing access should affect consumer behavior. This paper makes several improvements in the study of geographic access to alcohol, employing new economic theory, new techniques for measuring access, and spatial econometric techniques. We find that although reducing access does reduce apparent per capita consumption of liquor, economic theory suggests that many alcohol-related problems are unlikely to be affected.
Some Thoughts on Regional Economics as a Source of Scholarly Contributions
Authors: Sarafoglou Nikias , Cebula Richard J.
Published: March 2021

The present study seeks to extend the depth and scope of an earlier study by Isserman (2004). In particular, using Isserman (2004) as a starting point and using more recent data [for the years 2005 through 2009], this study seeks to provide a broader and more in-depth perspective on the role and relative contribution of Regional Economics research to pertinent related scholarly literature as a whole. Interestingly, by taking into consideration the size of a subfield or field in terms of the number of its SSCI-journals, Regional Science journals may well manifest a higher impact than the journals of Economics and Geography. Hence, RSAI journals appear to be contributing quite productively, given the relative size of their field.
Book Reviews
Authors: Lipscomb Clifford A.
Published: March 2021

“From Growth to Convergence: Asia’s Next Two Decades” is reviewed by Nalitra Thaiprasert. “The Big Sort: Why the Clustering of Like-minded America Is Tearing Us Apart” is reviewed by Cynthia Rogers. “The Great Migration, Rural-Urban Migration in China and Indonesia” is reviewed by Christiadi.
A European Union Price Policy Model for Southern Spain
Authors: Lima M. Carmen , Cardenete M. Alejandro
Published: March 2021

Social Accounting Matrices (SAM) are databases that focus on the intersectoral relationships in a given economy that close the circular flow of income. This article deals with the European Regional Development Fund (ERDF) in Andalusia, a Spanish region that European regional policy classifies in Objective 1. We apply the Leontief model to selected SAMs for the years 1990, 1995, and 1999, in order to develop a price model for assessing the impact of this funding on aggregate and sectoral prices.
Reasons for Use of Out-of-County Health Care Facilities in the Mississippi Delta
Authors: Wynveen Brooklynn J.
Published: March 2021

Mississippi has a long-standing place as one of the least healthy states in the country. Problems related to chronic illness, high mortality, and insufficient medical infrastructure are magnified within the state’s Delta region. Efforts to improve patient care require an understanding of the areas of weakness in current health care provision. Thus, the present analysis focuses on 16 Delta counties, using analysis of variance (ANOVA) to examine mean differences in agreement at the county level, with five potential reasons that respondents might choose to leave their home county for health care: quality, availability, familiarity, convenience, and cost.
Determinants of Investment Flows in U.S. Manufacturing
Authors: Brown Jason P. , Florax Raymond J.G.M. , McNamara Kevin T.
Published: March 2021

The purpose of the paper is to test the long-run steady state of growth factors hypothesized to influence U.S. manufacturing investment flows. These factors include agglomeration, market structure, labor, infrastructure, and fiscal policy. Spatial cross-regressive and spatial Durbin models are used to measure the spatial interaction of investment flows. Spatial spillovers are found to be of a competitive nature at the state level, implying that a factor which attracts more investment to a particular state is associated with lower investments in neighboring states. Investment flows to states with higher market demand, more productive labor, and more localized agglomeration of manufacturing activity.
Expected Time to Employment as a Function of Labor Market Size: A Theoretical Note
Authors: Schaeffer Peter V. , Gebremedhin Tesfa G.
Published: March 2021

When job prospects are uncertain, labor market size matters even when labor and jobs, respectively, are homogenous. The expected time to employment and its standard deviation may differ systematically with labor market size and create incentives for agglomeration.
Personal Perspectives on Amenities and Migration
Authors: White Nancy E.
Published: March 2021

The title of my talk today is “Personal Perspectives on Amenities and Migration.” I will begin with an introduction to my personal interest on this subject, and then link the personal to the professional.
A Note on the Need to Account for Spatial Dependence: A Case of Migratory Flows in Spain
Authors: Maza Adolfo , Villaverde José
Published: March 2021

The potential existence of spatial dependence in the relevant literature on migratory flows has not been dealt with sufficiently. This paper tries to fill this gap by applying spatial statistic techniques to the Spanish case. First, the paper shows that there is indeed spatial dependence in some of the variables conventionally included in migration equations. Second, these variables are filtered to remove spatial dependence. Third, in order to evaluate the influence of spatial dependence on migration, a conventional migration equation is estimated with both actual and filtered data, revealing key differences. Spatial dependence clearly matters in migration analysis.
Assessing Relative Performance of Econometric Models in Measuring the Impact of Climate Change on Agriculture Using Spatial Autoregression
Authors: Seo S. Niggol
Published: March 2021

Although econometric models have been widely used to measure the impact of climate change on agriculture, there exist differences among the modelers on which specification should be preferred. To help explain the discrepancies, this paper assesses four different econometric models, i.e. OLS, panel, and two spatial models using a South American agricultural household data. The relationship among the econometric specifications is examined in terms of the freedom given to a spatial autoregressive parameter. In spatial models, the spatial parameter is free within the model, but is fixed a priori in the aspatial models. Empirical results show a high correlation of the land values across South America. Spatial models result in somewhat lower climate change impact estimates than those from the aspatial models.
Location Decision Variations of Japanese Investors in China
Authors: Cheng Shaoming
Published: March 2021

This paper presents an empirical examination of Japanese investors’ location decisions in China and variations in those decisions. The mixed logit model, a recent advancement in discrete choice models, is adopted for the first time in plant location literature by virtue of its superior ability to accommodate heterogeneity. The paper is also intended to propose and establish a systematic method to detect heterogeneity in location choice situations.
On the Sraffa-Leontief Model
Authors: Sonis Michael , Hewings Geoffrey J.D.
Published: March 2021

In this paper we consider the matrix forms of the Sraffa-Leontief income distribution model introduced by Steenge (1995, 1997). We will explore the equivalence between these matrix forms and the set of simpler models, including the Sraffian condition of linear relations between the rate of profits and wage rate. Further, we will evaluate the condition that the price vector and the commodities vector are the left-hand and the right-hand eigenvectors of the matrix A of direct inputs and that these vectors are the fixed points of the Sraffian standard commodities-standard prices matrix. We will then explore links between the Sraffa-Leontief system and the multiplier product matrix (MPM) for the matrix A to consider new insights generated through visualization with the help an artificial economic landscape. Furthermore, the connections between MPM and the Sraffian standard commodities-standard prices matrix and their minimal information properties are proven.
Whither Decentralization: Implications for Linking Research and Practice
Authors: Rogers Cythia
Published: March 2021

This is the Presidential Address at the 2006 Annual Meetings of the Southern Regional Science Association, March 30-April 1, St. Augustine, Florida. It discusses the status of fiscal decent ralization in the academic literature and as a matter of policy focus. Although “fiscal decentralization is in vogue” (Oates, 1999, p. 1120), the mechanisms by which it influences economic growth are not well enough understood to provide policy guidance. The conclusion spells out the steps for researchers and policy makers in gaining a better understanding of the implications and processes associated with fiscal decentralization.
Understanding Regional Growth
Authors: Spiezia Vincenzo , Weiler Stephan
Published: March 2021

We explore the variations in regional economic growth within 26 countries relative to the OECD norm between 1998 and 2003. This analysis sheds light on the role of regions in determining national growth patterns, while also providing a method similar to shift-share that can assess the relative importance of a range of demographic and economic factors in driving such growth. In particular, this taxonomy isolates those growth factors involving region-specific assets that are potentially most influenced by policy. In this sense, the findings help highlight policy niches that can most effectively shape regional growth prospects while also challenging traditional views of regional growth drivers

.
We’re Right, They’re Wrong, Regional Science Is Where It’s At
Authors: Partridge Mark D.
Published: March 2021

Regional science is highly relevant in assessing issues that tangibly impact our lives. Conversely, economics is so fixated on mathematical rigor that it does not have the impact on policy that it should. Similar constructive criticisms apply to geography. To illustrate how regional scientists are more “grounded,” three examples show how their analysis can defeat popular misconceptions held by the media: (1) the role of energy resources in explaining Alberta’s long run growth; (2) how the largest U.S. cities are not growing increasingly more dominant; and (3) how considering American high poverty clusters can help inform international poverty research.
Effectiveness of Credit Pooling in Financing Infrastructure for Economic Growth in Southern Rural Counties – A Quasi-Experimental Approach
Authors: Ray Mona , Hite James C.
Published: March 2021

In this research, the method of quasi-experimentation is used to study the effects of adopting the credit pooling technique in financing infrastructure development in rural areas, thereby enhancing economic development. A difference in economic growth between the treated and control counties, if any, in the post treatment period is attributed to the treatment effect. Findings indicate some positive impact by raising the per capita income and income growth in some important sectors of the economy. However, that could be due to other treatments during the same period, which could not be controlled for in this study.
Food Industry Investment Flows: Implications for Rural Development
Authors: Lambert Dayton M. , McNamara Kevin T. , Garrett Megan I.
Published: March 2021

Food processing firms are often seen as potential sources of growth for rural areas. This paper examines the influence that agglomeration, labor, product and input markets, infrastructure, and government fiscal attributes have on food manufacturing investment flows. The analysis uses aspatial probit model along with spatial clustering methods to analyze county-level data for 12 states in the midwest and southern U.S. Findings suggest that rural areas are at a comparative disadvantage with respect to attracting demand-oriented food processors, but non-metro counties with economic ties to urban centers may be attractive investment sites to supply-oriented food manufacturers.
Econometric Issues in Education Finance
Authors: Ajilore Olugbenga
Published: March 2021

Several econometric issues within the field of education finance that have not been fully explored to date are addressed. Focusing on demographic factors and per-pupil expenditures in the United States, an econometric model that incorporates spatial analysis is developed and a unique framework for analyzing the impact of demographics on local public demand is introduced. The results show that ethnic diversity has a negative impact on per-pupil spending, while the elderly have a positive impact.
Wages and Industrial Clusters in Rio Grande do Sul (Brazil)
Authors: Monasterio Leonardo Monteiro
Published: March 2021

The purpose of this paper is to test whether the New Economic Geography hypothesis concerning the existence of a spatial wage structure applies to the state of Rio Grande do Sul, Brazil. The first part of the study applies several spatial analysis techniques in order to locate industrial clusters and calculate the market potential of the municipalities studied. The second part uses this information together with demographic data to run wage regressions aimed at capturing the effects of agglomeration and urban economies on individual wages. The results do not falsify the hypothesis that nominal wages, using the proper controls, are higher in municipalities with higher market potential and lower in the economically disadvantaged hinterland of the state.
A Spatial Econometric Analysis of Regional Specialization Patterns across EU Regions
Authors: Stirboeck Claudia
Published: March 2021

In this paper, I perform a spatial econometric analysis of the determinants of regional specialization patterns across EU regions. Spatial correlation is evident, but this is due mostly to spatial error autocorrelation. Spatial interaction caused by positive economic interdependencies might be present for a very few labor-intensive sectors, yet it is inconsistent across different spatial weights matrices. No clear, disadvantageous spatial interdependencies of specialization in the periphery or increasing core-periphery tendencies were identified.
The Impact of Petroleum Product Prices on State Economic Conditions: An Analysis of the Economic Base
Authors: Decker Christopher S. , Wohar Mark E.
Published: March 2021

Recent energy price increases have revitalized interest in energy’s impact on state economies. Moreover, lackluster economic growth in most states prompted some to suspend gas tax collections to stimulate economic activity. Given such interest, surprisingly few studies have quantified the effect energy has on state economies. Two questions are thus addressed here: 1) what is the impact of higher energy prices on state employment, and 2) what is the impact of a gas tax suspension. We find that the impact of increased petroleum-based energy prices on employment growth is small, calling into question the efficacy of a gas tax suspension.
Southern Regional Science in Interstitial Space
Authors: Henry Mark S.
Published: March 2021

Regional science has a variety of characteristics that distinguish it from its sister social sciences: it works the boundaries of economics, geography, planning studies, and sociology; space is its focus; spatial dependence is a core concern; comparative advantage remains a key concept for understanding how space will develop. Facing new and old challenges from global competition, lagging regions of the U.S., and especially in the rural South, will need new ideas from regional science on how to fit into the emerging economy in ways that promote higher incomes across all deciles of the income distribution.
Fiscal Policy and Economic Growth: The Case of the Italian Regions
Authors: Auteri Monica , Costantini Mauro
Published: March 2021

This paper seeks to contribute to our understanding of the relationship between economic policy and economic growth. With the use of a standard growth model, it assesses the influence of public investment and public transfers on the rate of economic growth. It does this by using data from the 20 Italian regions between 1970 and 1995. While the results show a positive influence of public investments on economic growth, this was not the case for public transfer payments in Italy.
The Returns to Education in Rural Areas
Authors: Goetz Stephan J. , Rupasingha Anil
Published: March 2021

We compare the returns to human capital in rural areas with those in urban areas, and across the different regions of the US. A key finding is that these returns are considerably lower in rural than in urban areas. Furthermore, failure to correct for spatial dependence bias produces an overestimate of the returns to education at the county-level. We also examine various interactions among the regressors to identify the reasons why the returns to education vary between rural and urban areas.
Laying the Foundation for Employment: The Role of Social Capital in Educational Achievement
Authors: Israel Glenn D. , Beaulieu Lionel J.
Published: March 2021

This paper examines the role of social capital - the set of supportive interpersonal interactions that exists in the family, community, and school - in promoting educational achievement. Employing data on public school students from the National Education Longitudinal Survey (NELS) and other secondary data sources, we examine the link between students’ access to social capital and important educational benchmarks, especially standardized test scores for math and reading. Building on previous research, we attempt to refine the conceptualization and measurement of social capital. We then undertake a new exploration of test score gains realized by students over the course of the

8th to 12th grades in order to assess the extent to which social capital attributes of the family, school, and community contribute to such gains. Finally, we outline the implications of our findings in guiding education policy activities in rural America.
The Perplexing Literature on Growth and Change
Authors: Bartik Timothy J. , Boehm Thomas P. , Schlottmann Alan M.
Published: March 2021

Even a casual library search clearly indicates that empirical growth studies comprise a significant, and growing, area of interest within the academic literature. In many respects, this strand of literature has been successful in identifying the basic nature of the growth process. By contrast, attempts to provide public policy directions are much less successful. It is this perplexing dichotomy that provides both the justification and point of departure of this volume. In this introductory piece, we identify several unresolved issues in both the public policy arena and economic theory that relate to the individual papers.
Regional Innovative Capacity with Endogenous Employment: Empirical Evidence from the U.S.
Authors: Riddel Mary , Schwer R. Keith
Published: March 2021

Using the endogenous growth model proposed by Romer (1990) and operationalized by Stern, Porter, and Furman (2000), we seek to identify factors that affect innovative capacity in the U.S. We find strong evidence of endogeneity between employment growth and innovative capacity. In response, we estimate a generalized two-stage random effects model of hi-tech employment and patenting activity. We find that the stock of knowledge (standing on shoulders effect), industry R&D expenditures, and the number of high-tech employees explain the rate of change of innovation among the states during the 1990s. The stock of human capital also influences the innovation rate. Our findings suggest that patenting activity and wages in the high-tech sector are the primary forces influencing the demand for high-tech labor.
Changes in U.S. and Canadian Wage Dynamics in the 1990s: How Unique Are Favorable U.S. Labor Market Developments?
Authors: Partridge Mark D.
Published: March 2021

One of the most notable recent U.S. economic developments is the sharp decline in the unemployment rate without a corresponding increase in inflation. This favorable change suggests that the labor market has undergone some important structural shifts. This study uses U.S. state-level data to evaluate this possibility. Canadian provincial-level models are also estimated for comparison. The results indicate that U.S. and Canadian regional wage dynamics were different in the 1990s than the 1980s. The U.S. findings are consistent with “new economy” interpretations and the results suggest that standard Phillips curve models may be unsuitable for both nations.
Successful Adjustment to Economic Restructuring in the Nonmetro Northeast: 1950-1990
Authors: Smith Stephen M. , Miller Kathleen
Published: March 2021

Changes in the economic structure of rural America have caused continuing concern about the ability of rural areas to maintain an employment base and viable, dynamic economies. This study finds that the vast majority of Northeast nonmetro counties had both employment and income growth throughout the 1950-1990 period. Counties that were most likely to be successful underwent shifts from traditional resource and manufacturing economies to service and diversified structures. While the results support previous research showing that economies that do not shift to growing industrial sectors will fall behind, a key result is the importance of a diversified economy.
Challenges to Economic Growth in Latin America and the Caribbean: A Preliminary Exploration
Authors: Tavernier Edmund M.
Published: March 2021

A fixed-effects model is developed to analyze the relationship between economic growth and agricultural development, trade balances, exports, and investment in Latin America and the Caribbean. The empirical evidence indicates a positive relationship between exports as a percentage of GDP and economic growth in the region. The results also show that persistent trade imbalances and a significant debt burden serve as a drag on economic growth, but investment and exports do not. The findings allow preliminary inferences to be made about the challenges to economic growth in the region.
The 30th Anniversary Issue
Authors: Hastings Steven E. , Latham III William R.
Published: March 2021

This article is a note from the Editors introducing the 30th Anniversary Issue.
Net Economic Base Multipliers and Public Policy
Authors: Leven Charles L.
Published: March 2021

The regional multiplier ordinarily applied to regional impact simulations is the Keynesian foreign trade multiplier. This assumes that all of the increase in aggregate demand is from the region’s “export” sector. In many applications, there can be offsetting changes in domestic demand with multipliers of their own. It is possible in many cases for the net multiplier to be less than 1.0. In extreme cases of differences in the import component of exports and displaced domestic demand, the net multiplier could be negative.
Determinants of the Spatial Mobility of Immigrants: Evidence from Sweden
Authors: Rephann Terance J. , Vencatasawmy Coomaren P.
Published: March 2021

Foreign-born residents constitute approximately 11 percent of the Swedish population. This level has been reached after steady immigration dur-ing the postwar years and has been accompanied in recent decades with pro-portionately more non-European immigrants. This paper examines how these foreign born differ from native Swedes in internal migration behavior using a unique, geographically descriptive micro database. It finds that they differ, in part, because of the role that the size of foreign-born communities plays in both the decision to migrate and choice of destination. The implications of these results for public policy, regional economic growth, and regional economic-demographic modeling are discussed.
An Analysis of Rural-Urban Differences in Average Family Income: An Application of the Oaxaca and Cotton-Neumark Decomposition Techniques
Authors: Ewing Bradley T. , Levernier William
Published: March 2021

Using multivariate regression analysis, this study examines the effect that demographic, educational, economic, and geographic characteristics have on average family income in rural and urban counties in the United States. The results indicate that while the above-mentioned characteristics generally affect average family income in both rural and urban counties, the effect of many characteristics is substantially different in rural counties than in urban counties. Using the Oaxaca and Cotton-Neurnark decomposition techniques, we find that only about half the income difference between rural and urban counties is explained by differences in their characteristics, however.
The Income Effects of Pub lie Subsidies to Traded Services
Authors: Hirasuna Donald P. , Pulver Glen C.
Published: March 2021

Examining the effects of four economic development subsidies - factor tax deductions on capital and labor and subsidies for research and development and labor training - we find that subsidies to the traded services-producing sector can raise aggregate real income and lower income inequality in comparison to the same subsidies to the manufacturing sectors. The analysis is conducted with a computable general equilibrium model of a state economy. The model is a specific factor model with 21 different industries and 18 dif-ferent occupations.
Monetary Policy and Regional Price and Wage Dispersion in the U.S.
Authors: Hammond George W.
Published: March 2021

It is generally accepted that certain fiscal policies have strong local impacts. However, it is considerably less obvious that national fiscal and mon-etary policies will have significantly different impacts on areas as large as states or census regions. This paper focuses on the impact of U.S. monetary policy on relative inflation and wage growth rates for four large regions within the U.S. The results suggest that the conditional variance of aggregate monetary policy shocks, estimated from an ARCH process, increases the dispersion of regional inflation and regional real wage growth rates for the four U.S. census regions.
The Impact of Homeownership on the Duration of Unemployment
Authors: Goss Ernest P. , Phillips Joseph M.
Published: March 2021

Housing stock is one of the most important components of household wealth

in the U.S. Public policy has vigorously promoted home ownership based on the belief

that it strengthens the individual’s commitment and contribution to the community. Yet it

is possible that this social goal generates unanticipated consequences in the labor market.

This study examines potential labor market influences of home ownership, focusing on

the length of unemployment. Using a sample of unemployed workers from the 1986 Panel

Study of Income Dynamics, this study concludes that for some unemployed, home

ownership significantly reduces unemployment duration. This appears to occur through

two channels. First, the burden of monthly mortgage payments stimulates more vigorous

job search, and second, home equity aids job search through a wealth effect.
The Nature and Significance of Network Interactions for Business Performance and Exporting to Mexico: An Analysis of High-technology Firms in Texas
Authors: Hansen Niles , Echeverri-Carroll Elsie
Published: March 2021

This article utilizes survey data from high technology firms in Texas to analyze the location of their interfirm cooperative contacts and the importance of these contacts for their business success in general and for exporting to Mexico in particular. A literature review of the nature of collaborative firm networks in both Europe and the United States is followed by an empirical analysis of how local, national and international interfirm contacts differ between manufacturing and service establishments, between independent and branch establishments, and between large firms and small and medium-size enterprises (SMEs). Policy implications of the results are considered in the concluding summary.
Application of Count Data Procedures to Estimate Thresholds for Rural Commercial Sectors
Authors: Harris Thomas R. , Chakraborty Kalyan , Xiao Lijuan , Narayanan Rangesan
Published: March 2021

This paper extends previous research in the estimation of minimum demand thresholds for rural commercial sectors by employing count data procedures. Advantages of count data procedures are contrasted with the traditional double-log model. Also discussed is the incorporation of results from count data procedures into a rural commercial sector development strategy.
An Assessment of the Assignment Method in Economic Base Analysis
Authors: Mulligan Gordon F. , Vias Alexander C.
Published: March 2021

Numerous techniques have been devised to make economic base analysis more cost-effective. The simplest of these, the assignment or assumption method, allocates the entire employment (income) of each industry to either the basic or nonbasic sector of the regional economy. Unfortunately, employment data have not been generally available in a form appropriate for evaluation of the assignment method. This paper combines a unique body of survey-generated employment data with OLS regression procedures in providing such an evaluation. Competing values of economic base multipliers, derived from the assignment method and the “correct” benchmark method, are estimated for various types of communities. These estimates, reflecting two rather different interpretations of the economic base logic, are shown to be remarkably similar in size, but not in composition. The study uses the Arizona Community Data Set, a data base covering 47 towns in the U.S. Southwest
Regional Efficiency Differences and Development Policy of Agriculture in the Yugoslav Republics: Estimates from Panel Data
Authors: Hofler Richard A. , Payne James E.
Published: March 2021

This paper discusses economic development policy in the Yugoslav republics, with particular attention to agricultural production. Previous researchers have suggested that a development strategy of transferring investment resources from the more developed to the less developed republics as well as segmentation of the financial system has resulted in an inefficient allocation and use of resources. Thus we examine the question of efficiency from panel data, using the stochastic production frontier. In addition to analyzing the differences across republics, we also address the differences associated with social versus private modes of organizing production. We find the private sector produces with higher output efficiency than the social sector. Moreover, our findings concur with prior discussions on the economic impact of regional development policy pursued in the Yugoslav republics. Relative to the more developed republics, the less developed republics cannot efficiently utilize the large volume of investment resources allocated by the Federal government.
High-Tech Employment and State Economic Development Policies
Authors: Partridge Mark
Published: March 2021

States have attempted to attract industries by offering a variety of tax incentives and economic development programs with mixed success. States have recently begun to focus on high-tech industries, where average wages are significantly above the all industry average. This study analyzes whether a state’s tax and expenditure mix can influence high-tech industry location. Empirically, this study advances previous high-tech research by carefully modelling the government budget constraint and by considering more recent data. One emphasis will be whether rural states are inherently unable to attract high-tech industry and its high-paying jobs. In general, the empirical results suggest that a state’s fiscal policies can attract high-tech fums, but states must proceed very cautiously. Furthermore, rural states are not dealt out of the high-tech game.
A Regional Model of Import -Employment Substitution: The Case of Textiles
Authors: Henderson David , Sanford Scott
Published: March 2021

An elasticity of textile employment with respect to textile imports is estimated for the nation, two regions, and four local areas. A theoretical labor demand equation is derived which endogenizes textile imports and facilitates direct estimation of import-employment elasticities. The results indicate the textile imports only partially substitute for domestic employment and that the estimated elasticity varies by region. The estimated elasticity was -.27 for the nation and ranged from -.22 to -.31 at the regional level and from -.43 to -.19 for the local analysis. The elasticities are used in an impact analysis to demonstrate the over and under estimation of direct employment loss which occurs when estimates from spatial averages are used.
Changes in State Income Inequality from 1981 to 1987
Authors: Husted Thomas A.
Published: March 2021

This paper examines the changes in state-level income inequality from 1981 to 1987. Family income inequality is measured with Gini coefficients calculated for each state. Changes in these measures during this period appear to reflect, in part, the uneven economic restructuring across the states and regions during the 1980s.
Constructing Poverty Rankings For State Subregions: A Case Study Of North Carolina
Authors: Bishop John A. , Zeager Lester A.
Published: March 2021

In recent years, economists with differing views on many income distribution issues have begun to call for a public policy aimed at reducing poverty, rather than income inequality per se. Studies of variations in income inequality among regions have appeared in economics journals for several decades, but less work has been devoted to regional poverty measurement. This paper brings together recent theoretical and statistical advances in poverty measurement and develops a methodology for studying variations in poverty across small regions using readily available data from the Census Bureau.
Measuring and Forecasting Local Economic Activity: A Status Report
Authors: Farrell Claude , Hall, Jr. William W.
Published: March 2021

A survey was conducted over 1987-88 to obtain information on the extent to which regional economists were engaged in measuring and forecasting local economic activity. A total of 250 members of the Association for University Business and Economic Research and the Southern Regional Science Association were surveyed. The intended specific objectives of this paper are twofold. First, some of the tools which can be used to measure and forecast local economic activity will be presented. Second, some of the primary obstacles encountered in this pursuit will be discussed. The survey results are briefly reported and used as the basis in meeting the intended objectives. The literature review at the end of this paper is also directed to this end.