bluuebunny/crossref_metadata_2025 huggingface dataset:
THE ECONOMICS OF AIR TRAVEL GRAVITY MODELS*
Authors: Long Wesley H.
Published: July 2006

Starting with the aggregate demand model of economics, a model of demand for intercity air travel is developed which contains the gravity model as a less general submodel. The more general model is referred to as the alternative opportunities model since it takes account of alternative destinations open to travelers, not just origin and destination as does the gravity model. The demand model approach has the virtue of providing a theoretical basis for understanding and analyzing the gravity model.

The gains from treating alternative locations and demand motivation variables are a substantial increase in explanatory power over that yielded by the gravity model, the identification of statistically significant determinants of air travel, and better measurement of the coefficients of population and distance by taking account of these other variables and somewhat better forecasts.

A shortcoming of procedures used here is aggregation of air trips with different purposes and thus lack of clear specification of the size of effects of different variables on different types of travel. Overcoming this difficulty must await origin‐destination data listed by trip purpose.
K. H. RAU AND THE ECONOMIC LAW OF MARKET AREAS*
Authors: Shieh Yeung‐nan
Published: July 2006

It is well‐known that the economic law of market areas was first discovered by Launhardt (1882, 1885, 1900‐1902) in Europe and independently discovered by Fetter (1924) in the United States. This paper shows that the seeds of the law of market areas are contained in a letter of K. H. Rau to M. Quintelet published in 1841, and that Rau's name deserves to be mentioned alongside those of Launhardt, Cheysson, and Fetter, as writers who contributed substantially to the developments of the law of market areas.
SPATIAL COMPETITION WITH LOCATION‐DEPENDENT COSTS*
Authors: Karlson Stephen H.
Published: July 2006

This paper investigates the behavior of spatially‐competitive firms whose costs depend on their locations. Necessary and sufficient conditions for optimum locations are derived. Comparative‐statistics analysis of the equilibrium shows that the responses of firms to changes in input and output transport rates depend on the properties of consumer demand curves or are ambiguous in sign.
MEASURING THE DEVELOPMENT IMPACT OF A TRANSPORTATION SYSTEM: A SIMPLIFIED APPROACH*
Authors: Liew Chong K. , Liew Chung J.
Published: July 2006

The Multiregional Variable Input‐Output (MRVIO) model is introduced to measure the development impact of a transportation system. The MRVIO model is a theoretically flexible, computationally simple, and cost‐responsive model. Under the MRVIO model, regional input‐output coefficients, trade coefficients, and trade flows become cost responsive and easy to compute.

The MRVIO model is employed to measure the development impact of the Arkansas waterway during the period of 1974 to 1978. In the study, the U.S. economy is disaggregated into 3 regions and 35 industrial sectors. The MRVIO model estimates the economic conditions of these 3 regions with and without the waterway in terms of industrial output, income, employment, and trade flows.
LEONTIEF TECHNOLOGY AND THE LOCATION OF THE FIRM IN A WEBER TRIANGLE–SPECIFIC LOCALIZATION THEOREMS*
Authors: Kusumoto Sho‐Ichiro
Published: July 2006

In special cases of the Leontief technology's constant input‐output coefficients, the general localization theorem that an interior location is a global optimum if every input or market vertex is not a local optimum [Kusumoto (1984)] is confirmed and strengthened. Sufficient conditions are proposed for the portion of a triangular space in which the firm will locate. Finally, it is shown that, if input substitution is permitted and its effects dominate spatial effects, the firm's total cost function will be monotone, as well as concave, hence the vertex is a global optimum if it is a local optimum.
OPTIMUM LOCATION AND THEORY OF THE FIRM UNDER A REGULATORY CONSTRAINT*
Authors: Mai Chao‐cheng
Published: July 2006

This paper attempts to incorporate space in the theory of a regulated firm. It will show that the A‐J effects are not affected in a spatial setting. In addition, it will also demonstrate that as the difference between the regulated fair rate of return and the unconstrained profit‐maximizing rate of return on capital becomes greater, the optimum location of the regulated firm moves towards the site of the product market, if capital and labor are complements (substitutes) and if marginal transportation costs (with respect to distance) are an increasing (decreasing) function of labor usage.
A QUARTERLY ECONOMETRIC MODEL OF FACTOR DEMANDS IN REGIONAL MANUFACTURING
Authors: Hanseman Dennis J.
Published: July 2006

This paper presents a model of demand for factor inputs in regional manufacturing industry. Demands for labor and capital are distinguished from demands for factor services using a generalization of the disequilibrium adjustment framework of Nadiri and Rosen. The generalization allows for a richer variety of responses to external shocks and involves the distinction between systematic and error dynamics.

The model is estimated for the period 1963:I‐1980:I using data from the Cincinnati SMSA and appropriate econometric techniques. Substantial attention is paid to the dynamic response of the estimated equations.
AN ANALYSIS OF TWO‐CENTER COMPETITION
Authors: Kohsaka Hiroyuki
Published: July 2006

This paper analyzes the competition between the two centers which belong to different hierarchical levels. A two‐center competition model is constructed by applying the Lotka‐Volterra equations. This model includes as parameters the scale economies of central places, the consumer's outflow from the region, as well the distance between centers. As it is assumed in this model that the carrying capacity of the region will be affected by the consumer's outflow rate from it, the outflow rate is estimated by a demand generation model and then incorporated into the two‐center competition model.
DEREGULATING THE DISTRIBUTION OF ELECTRICITY: PRICE AND WELFARE CONSEQUENCES OF SPATIAL OLIGOPOLY WITH UNIFORM DELIVERED PRICES*
Authors: Hobbs Benjamin F. , Schulert Richard E.
Published: July 2006

ABSTRACT. Theoretical, spatial oligopoly models are developed and calibrated to simulate the price and welfare consequences of deregulating the retail price of electricity (the distribution function), assuming competing sources of generation supply are available. Two types of distribution competition are considered, retaining the currently used uniform delivered pricing structure: competition for customers at neighboring utilities’ borders and franchise competition. Because duplicate facilities are required for borderline competition, short‐run price increases ranging between 14 and 37 percent over existing regulated prices are estimated for upstate New York, largely because deregulated prices reflect replacement, not historic, costs of facilities.
UPPER BOUNDS ON THE SIZES OF INTERREGIONAL FEEDBACKS IN MULTIREGIONAL INPUT‐OUTPUT MODELS*
Authors: Miller Ronald E.
Published: July 2006

ABSTRACT. Upper bounds are presented for a measure of the overall percentage error caused in a multiregional input‐output model when interregional feedback effects are ignored. This error figure is thus a measure of the magnitude of interregional linkages. The upper bounds are expressed as a function of the levels of self‐sufficiency in the regions in the model and of the norms of the regional technical coefficients matrices. Experimental results are presented for a variety of examples that are thought to reflect real‐world situations, and it is clear that in many cases the upper bound (and hence the error) is extremely small. The implication is that single‐region input‐output models may be adequate for a variety of questions.
THE MAXIMUM CAPTURE OR “SPHERE OF INFLUENCE” LOCATION PROBLEM: HOTELLING REVISITED ON A NETWORK*
Authors: Revelle Charles
Published: July 2006

ABSTRACT. The problem of the ice cream vendor on the beach is extended to the siting of multiple entering servers into the midst of existing servers which are already in place at multiple sites on a network. The network of population nodes, joining arcs, and eligible sites for servers provides the underlying matrix of the problem. The goal of the single firm which is siting the multiple entering servers is the capture of the maximum population from existing servers. This combinatorial problem can be described as a linear integer program for which solutions can easily be derived. Computational experience and insights derived therefrom are reported.
VARIATIONAL PRINCIPLES AND CONSERVATION CONDITIONS IN VOLTERRA'S ECOLOGY AND IN URBAN RELATIVE DYNAMICS*
Authors: Dendrinos Dimitrios S. , Sonis Michael
Published: July 2006

ABSTRACT. Relative spatial population dynamics are analyzed in this paper under Volterra‐Lotka specifications. At first, the Volterra conservation conditions under absolute growth and their variational principles are reviewed, extended, and interpreted. Then, the relative dynamics are presented which demonstrate the presence of competitive exclusion.

The main aim is to derive the variational principles underlying relative population dynamics. It is found that these principles produce an integrand, the stationary value of its integral being the cumulative entropy of the population distribution over a time horizon. Substantive interpretation of these results in accordance with optimization principles in economic theory is presented.
MAXIMUM LIKELIHOOD ESTIMATION OF GRAVITY MODEL PARAMETERS
Authors: Sen Ashish
Published: July 2006

ABSTRACT. It is shown that, under some very mild conditions, maximum likelihood estimates of gravity model parameters exist and are unique (up to a scale transformation for some parameters). An algorithm for finding such estimates is also proposed.
THE QUESTION OF EFFICIENCY IN URBAN BUS TRANSPORTATION*
Authors: Viton Philip A.
Published: July 2006

ABSTRACT. This paper estimates a flexible frontier specification for the production of urban bus transit services in the United States. The results confirm previous findings of relatively unimportant scale economies. However, they also suggest that this regulated industry is subject to substantial technical and allocative inefficiency.
ECONOMETRIC ANALYSIS OF HOUSING TRAIT PRICES IN A THIRD WORLD CITY*
Authors: Megbolugbe Isaac F.
Published: July 2006

ABSTRACT.A first step in the process of economic analysis of housing markets in Third World cities is the econometric analysis of housing trait prices. The information on market price of housing is basic to the derivation/estimation of other market parameters such as housing demand and supply elasticities. In addition, housing trait prices constitute invaluable inputs into the analysis of effects of government housing programs.

This paper presents estimates of housing trait prices in a Third World city housing market, the city of Jos in Nigeria. Nonlinear stochastic specification of a policy constrained hedonic price function is presented as an unbiased estimator of housing trait prices. The Box‐Cox statistical procedure was employed in the paper to obtain hedonic regression coefficients which are the parameters needed to compute the average prices evaluated both at the mean of each trait and at their margins. The potential uses of housing trait prices for policy analysis are discussed briefly.
MODELING RESIDENTIAL CHOICE*
Authors: Lapointe Alain , Desrosiers Jacques
Published: July 2006

ABSTRACT. This paper presents a new approach in the modeling of residential choices for simulation purpose. The originality of the approach resides in the way recent developments in stochastic choice models are combined with deterministic mathematical programming which allows to define an equilibration process for simulation. In that respect, ex ante probabilities of housing choice based on random utility maximization under perceived constraints are distinguished from ex post probabilities of choice that respect supply constraints. The proposed model is tested on the Montreal Metropolitan Region, and a few simulation results based on a scenario of population aging and decrease in household size are analyzed.
PRODUCTION FUNCTIONS AND THE DISAGGREGATION OF LABOR INPUTS IN MANUFACTURING PLANTS*
Authors: McQuaid Ronald William
Published: July 2006

ABSTRACT. This paper investigates the assumption of homogeneous labor inputs underlying the production functions in many regional models. The results indicate that nonproduction and production labor within manufacturing plants are not strongly separable, and the homogeneous labor assumption is not therefore appropriate. Hence, regional models need to take this into account in order to give reliable results. Differences between industries provide useful additional insights into their labor and capital relationships.
A NOTE ON THE STABILITY PROPERTY OF SPATIAL COMPETITION*
Authors: Nakagome Masaki
Published: July 2006

ABSTRACT. Our study extends the standard comparative static analysis to allow for dynamic aspects of equilibrium in spatial competiton. We investigate dynamic stability properties via the Routh‐Hurwitz criterion. Nontrivial equilibria in the so‐called Löschian, Hotelling‐Smithies, and Greenhut‐Ohta models are shown to be stable even under heterogeneous cost conditions among competing firms, conditions not considered hitherto. We can thus provide powerful support to the comparative static analyses which can only be developed via equilibrium concepts with stability properties.
PRIVATE PRODUCTION, COLLECTIVE CONSUMPTION, AND REGIONAL POPULATION STRUCTURE: THE INTERACTIONS BETWEEN PUBLIC AND PRIVATE GOOD PROVISION AS DETERMINANTS OF COMMUNITY COMPOSITION*
Authors: McGuire Martin C.
Published: July 2006

ABSTRACT. Theories of trade and migration explain the distribution of individuals among regions based on private good productivities. The theory of local public goods (LPG's) uses collective good consumption economies to explain the size and composition of communities. This essay combines the two theories, to explore regional population heterogeneity and stability. Assuming that individuals must consume and produce in the same jurisdiction, the paper examines the nature of efficient allocations, the tensions between the private and public incentives, the nature of the equilibrium (if any) which migration among jurisdictions will generate, and how such equilibrium will depend on tax rules for sharing the costs of the LPG.
LOCAL TAX BURDENS AND THE SUPPLY OF BUSINESS SITES IN SUBURBAN MUNICIPALITIES*
Authors: Erickson Rodney A. , Wollover David R.
Published: July 2006

ABSTRACT. The purpose of this study is to examine the effects of local household tax burdens and other community attributes on the supply of business sites made available by local municipalities. A model of community site supply is tested in which municipalities trade off increased fiscal benefits from business location and reductions in environmental quality that accompany industrial and commercial development. This tradeoff is embodied in municipal zoning decisions. Empirical analysis of industrial and commercial zoning in two rapidly growing suburban counties of the Philadelphia metropolitan area provides considerable support for the tenets of community site supply theory.
REGIONAL WAGE DIFFERENTIALS AND RACE: 1973‐1978*
Authors: Krumm Ronald J.
Published: July 2006

ABSTRACT. The intertemporal structure of regional nominal‐wage differentials by race is estimated using panel data from 1973 through 1978. This allows for a more complete analysis of the time pattern of changes in wage differentials, which is not possible from cross‐sectional studies. The findings indicate that, in addition to the presence of substantial locational differentials, there was a systematic change in the differentials over time.
OPTIMAL REGIONAL GROWTH MODELS: MULTIPLE OBJECTIVES, SINGULAR CONTROLS, AND SUFFICIENCY CONDITIONS
Authors: Friesz Terry L. , Luque Javier
Published: July 2006

ABSTRACT We develop a generalized Harrod‐Domar type of model for optimal regional growth which allows determination of the optimal allocation of regional public investments and which considers multiple growth objectives, as well as both normal and singular fiscal instruments. This general model is shown to include most of the previous optimal regional growth models as special cases. Necessary conditions for some special cases of the general model are analyzed in detail, and decision rules associated with derived optimal regional growth policies are articulated. These special cases verify that singular controls do exist in certain instances, and that they must be considered for the complete specification of optimal regional growth policies; this is significant because singular controls have not been previously analyzed in the literature. We conclude the paper with a discussion of sufficiency conditions for optimal regional growth models which is more general than that given by previous authors.
A DYNAMIC PHASE TRANSITION MODEL FOR SPATIAL AGGLOMERATION PROCESSES*
Authors: Weidlich Wolfgang , Haag Günter
Published: July 2006

ABSTRACT A nonlinear model for the migration of one population between L primordially equivalent regions is introduced. The agglomeration trend k is the relevant system parameter. For low (k < kc) the homogeneous population distribution and for high (k > kc) states with one metropole and (L−1) depleted provinces are stable equilibria. The dynamics of phase transitions between such stable states can be described by a global nonlinear analysis. Exact analytic solutions for the population evolution along symmetry paths are found. A dynamic stability analysis shows which paths of evolution are preferred and lead to stable endconfigurations.
INTERREGIONAL WAGE DIFFERENTIALS: AN EQUILIBRIUM PERSPECTIVE*
Authors: Dickie Mark , Gerking Shelby
Published: July 2006

ABSTRACT This paper empirically analyzes two competing explanations for observed interregional wage differentials among full‐time U.S. workers: (1) differences in the average levels of market valued labor characteristics, and (2) differences in rates of return to the characteristics. Hedonic wage equations are estimated for broad U.S. regions using detailed measures of human capital, work environment, and personal attributes collected by a national random sample mail survey. Statistical tests reveal little tendency for interregional structural shifts in the wage equations estimated, an outcome which rests on the inclusion of important, but seldom measured, wage determining variables.
A LINEAR PROGRAMMING APPROACH TO SOLVING INFEASIBLE RAS PROBLEMS
Authors: Möhr Malte , Crown William H. , Polenske Karen R.
Published: July 2006

ABSTRACT The RAS procedure is widely used to update national and regional input‐output tables and international trade tables and to construct regional tables from national ones. Special problems, however, have been encountered when the procedure is used to adjust interregional trade tables. In this paper, the special properties of interregional trade tables that increase the likelihood of nonconvergence of the RAS procedure are discussed, and two linear programming methods of solving infeasible RAS problems are provided. First, a closed linear programming approach, which enables exogenous information to override the purely mechanical solution of infeasible RAS problems, is presented. Finally, the open linear programming approach is applied successfully to adjust U.S. interregional trade data that had previously failed to converge using the RAS procedure.
A HEDONIC MODEL OF INTERREGIONAL WAGES, RENTS, AND AMENITY VALUES*
Authors: Hoehn John P. , Berger Mark C. , Blomquist Glenn C.
Published: July 2006

ABSTRACT This paper develops a general multimarket hedonic model appropriate for a national, interregional study of wages, housing prices, and location‐specific amenities. The model encompasses the effects of interregional location, intraurban location, and city size. Typically, hedonic studies focus on a single market such as labor or housing and ignore interactions implicit in a more global compensation mechanism. Examination of the comparative statics of our model indicates that single‐market differentials are partial prices and are unreliable measures of amenity values in an interregional context. Unbiased amenity values are estimated for a comprehensive set of amenities using data on housing prices for 34,414 households and wages for 46,004 workers from the 1980 Census of Population and Housing. Statistically significant differences in housing prices and wages are found due to amenities.
A NOTE ON THE GENERAL MATHEMATICAL EQUIVALENCY OF ECONOMIC BASE AND AGGREGATE INPUT‐OUTPUT MULTIPLIERS: FACT OR FICTION*
Authors: Merrifield John
Published: July 2006

ABSTRACT A longstanding inconsistency in the definition of basic and nonbasic economic activity is resolved. When indirect exports are included in the basic, rather than the nonbasic sector, and the model is closed with respect to households, economic base and aggregate input‐output mulitpliers constructed with the same data and definitions will be mathematically identical.
NEW COMPETITION IN SHOPPING‐CENTER HIERARCHIES: AN EMPIRICAL COMPARISON OF ALTERNATIVE SPECIFICATIONS*
Authors: West Douglas S. , Ryan David L. , Von Hohenbalken Balder
Published: July 2006

ABSTRACT. Within the framework of an existing hierarchy of shopping centers, Voronoi diagrams at each level of the hierarchy are used to define infringement on existing centers by new entrants. We distinguish four intensities of infringement—that is, four categorizations of when existing centers face new competition—and label shopping centers accordingly. Our aim is to determine empirically which type of new competition is best explained by various attributes of the incumbent centers. To accomplish this, logit analysis is used to relate the above labels to market‐area population, store turnover, age, and hierarchical level of each shopping center in Edmonton, Alberta.
METROPOLITAN AGGLOMERATION AND SECTORAL AGGREGATION*
Authors: Dierx Adriaan H.
Published: July 2006

ABSTRACT. This paper proposes a procedure with which sectoral production functions can be aggregated to metropolitan production functions in the presence of external economies of scale. The procedure specifies the production functions as part of general equilibrium models. Consistency of a one‐sector and a two‐sector general equilibrium model is defined in terms of equality of the distribution of a nation's population over its metropolitan areas in autarky.
LOCATION AND MARKET POWER HOTELLING REVISITED*
Authors: Artle Roland , Carruthers Norman
Published: July 2006

ABSTRACT This paper analyzes the determination of industry structure in a product market, given a monopolistic factor market. The characteristics of industry structure examined include the number of firms, their pricing and locational pattern.

It is shown how a monopolistic factor owner–a landowner–structures the product market in order to extract maximum rent. Asymmetry characterizes the resulting locational pattern. All the product market firms charge different prices in equilibrium. No matter how large the number of firms competing in the product market, the landowner can always guarantee himself positive profits.

The paper concludes with a discussion of possible applications and tests of the theory.
URBAN PRODUCTIVITY: CITY SIZE OR INDUSTRY SIZE*
Authors: Sveikauskas Leo , Gowdy John , Funk Michael
Published: July 2006

ABSTRACT This paper analyzes the effect of city size and industry size on urban productivity in the food processing industry. Some formulations suggest productivity is associated with industry size rather than city size. However, when allowance is made for the tendency of food processing to locate near relevant raw materials and for regional dummies, there is no support for industry scale economies. Agglomeration effects, associated with city size, do exist. The central estimates are based on the Chan‐Mountain version of the translog production function. The results provide information on some facets of the appropriate balance between industrial and agricultural production.
MULTIPERIOD MIGRATION PATTERNS: THE TIMING AND FREQUENCY OF HOUSEHOLD RESPONSES*
Authors: Krumm Ronald , Kelly Austin
Published: July 2006

ABSTRACT The structure of intertemporal patterns of household migration responses is empirically examined. The findings indicate that migration decisions are often related to changes in household conditions in both prior as well as following periods, are dependent on the duration of household status characteristics (e.g., marital status) and not just their presence at any point in time, and finally that migration response in any particular period very often differs among households as a result of differences in the underlying structure of migration frequency behavior. These findings suggest that inferences based on comparisons of household migration responses over only a single period of time are incomplete, possibly to the point of being misleading.
STATISTICAL PROPERTIES OF MATHEMATICAL PROGRAMMING MODELS OF STOCHASTIC NETWORK EQUILIBRIUM*
Authors: Anas Alex
Published: July 2006

ABSTRACT. Boyce et al. (1981, 1983) have proposed and implementd the use of observed entropy levels to estimate the travel‐cost coefficient in mathematical programming models of network equilibrium which involve logit route‐choice probabilities. This so‐called “dispersion‐constrained” model is shown to give severely biased and statistically inefficient underestimates. A natural counterpart, the entropy‐maximizing model, is proposed here and overestimates the travel‐cost coefficient with much lower bias and much higher statistical efficiency. Even though the two models are mathematically homeomorphic in some respects, they have vastly different statistical properties. It follows that the use of observed entropy levels is undesirable and should be avoided, since maximizing entropy provides an unambiguously superior alternative.
SPATIAL ENTRY DETERRENCE UNDER OLIGOPOLY*
Authors: Gerlowski Daniel A.
Published: July 2006

ABSTRACT. This paper examines colluding, oligopolistic firms in a linear market. By assuming that rivals do not compete for consumers at their market boundaries, it is shown that an equilibrium exists without adopting a convex transportation cost function. Two price profiles are derived. The first describes firm prices in the absence of threatened entry. The second details profit‐maximizing prices which forestall entrants. Given infinite relocation costs, threatened entry leads to price adjustments by the incumbent firms.
PATTERNS AND DETERMINANTS OF PRODUCTIVE EFFICIENCY IN STATE MANUFACTURING*
Authors: Beeson Patricia E. , Husted Steven
Published: July 2006

ABSTRACT This paper uses a stochastic frontier production‐function model to measure and compare productivity efficiency in the manufacturing sector of states in the United States over the period 1959–1972. Based on this model we find considerable variations in productive efficiency across states. A large portion of the variation is found to be related to regional differences in labor‐force characteristics, levels of urbanization and industrial structure. We also examine the relationship between productive efficiency and the subsequent growth of manufacturing and find some evidence of a weak relationship between efficiency and the growth of employment.
THE OPTIMAL LOCATIONS OF MULTIPLE BRIDGES, CONNECTING FACILITIES, OR PRODUCT VARIETIES*
Authors: Braid Ralph M.
Published: July 2006

ABSTRACT This paper considers the optimal locations of two or more facilities, and the optimal number of facilities, when trips are made in pairs. The results are the same as standard models of spatial competition when there is perfect matching, but not when there is random matching. The first interpretation is bridges across a river, with residential locations on one side matched perfectly or randomly to jobs on the other side. The second interpretation is connecting facilities, such as tennis courts or restaurants where pairs of consumers meet. The third interpretation is product differentiation, with husbands and wives jointly choosing from among varieties.
ON THE ROLE OF AMENITIES IN MODELS OF MIGRATION AND REGIONAL DEVELOPMENT*
Authors: Knapp Thomas A. , Gravest Philip E.
Published: July 2006

ABSTRACT The role of location‐specific amenities in human migration decisions, and subsequently regional development, is explored. A framework is developed which motivates a new assessment of existing alternative models of regional development, indicating the need for additional modeling efforts which focus upon amenities as critical elements in such analyses. The approach hinges upon the notion that amenity values are capitalized into wages, rents, or other local prices. This process of capitalization enables researchers to explore the implicit value that society places upon amenities, which can then be used in assessing future regional‐development trends in a more comprehensive manner.
URBAN UNEMPLOYMENT AND THE SPATIAL STRUCTURE OF LABOR MARKETS: AN EXAMINATION OF THE “TODARO PARADOX” IN A SPATIAL CONTEXT*
Authors: Nakagome Masaki
Published: July 2006

ABSTRACT The Todaro paradox and the effects of job creation in urban areas will be re‐examined in our spatial model in which the radius of the labor market is endogenously determined by the rational choices of workers. The travel cost of workers plays a crucial role in the choice between two different types of response, migration or commuting. By considering travel costs, we find that the Todaro paradox can be applied to developed, as well as developing, countries. Job creation in urban areas can produce a paradoxical increase in urban unemployment in developed countries, because the low marginal cost of travel will significantly increase the radius of the urban labor market and create new labor supply without migration.
A STRUCTURAL EMPIRICAL ANALYSIS OF METROPOLITAN LABOR DEMAND*
Authors: Crihfield John B.
Published: July 2006

ABSTRACT. This paper uses a large data base to study metropolitan labor demand functions. The data are disaggregated by two‐digit SICs in manufacturing for SMS As, and are corrected for changing SMSA boundaries. Labor demand elasticities are estimated for factor and commodity prices, transportation costs, state and local taxes and expenditures, and production‐function shifters. Estimates from different years allow one to test Le Chatelier's principle in the context of interregional change.
REAL WAGE RIGIDITY IN REGIONAL LABOR MARKETS IN THE U.K., THE U.S., AND WEST GERMANY*
Authors: Hyclak Thomas , Johnes Geraint
Published: July 2006

ABSTRACT. This paper examines the extent to which regional differences in wage rigidity exist and can help explain interregional differences in unemployment trends. Phillips‐curve models of manufacturing wage inflation are estimated for the 10 largest states in the U.S., the 10 economic regions in the United Kingdom, and the 11 Lände in the Federal Republic of Germany over the 1971 to 1985 period. There is evidence of significant differences in the responsiveness of wage inflation to unemployment and the rate of change in consumer prices across the regions within each country and across the three nations. An index of real wage rigidity derived from the Phillips‐curve coefficients is positively correlated with unemployment trends across the regions in our sample, suggesting that wage rigidity may be an important determinant of regional differences in labor market responses to macroeconomic shocks.
THE MAXIMUM CAPTURE PROBLEM IN A WEIGHTED NETWORK*
Authors: Eiselt Horst A. , Laporte Gilbert
Published: July 2006

ABSTRACT. In this paper, a conditional location problem on a weighted network is examined. Attraction functions are defined and the problem is formulated as a mixed integer program. A method which simultaneously locates an additional facility on the given network and optimizes its weight is then described. A numerical example is provided.
THE SUPPLY‐DRIVEN INPUT‐OUTPUT MODEL: A NEW INTERPRETATION BUT STILL IMPLAUSIBLE
Authors: Oosterhaven Jan
Published: July 2006

ABSTRACT. In this reply, I argue that the production function proposed by Gruver provides a theoretical foundation for the supply model only in a most trivial case. He proposes a more general alternative which is, however, still very implausible. Furthermore, against Rose and Allison, I argue that small input‐coefficient changes provide an insufficient excuse for using the supply model for impact studies, and I show that employment estimates may be quite different depending on the approach used.
ECONOMIES OF SCALE AND ENTRY IN SPATIAL MARKETS
Authors: Claycombe Richard J.
Published: July 2006

For the purposes of simplicity, short‐run cost functions are widely used in spatial markets literature, even when the long‐run effects of entry are in question. In this paper, I show that if a long‐run cost function is incorporated into a Löschian model, counter‐intuitive and novel performance characteristics can result. Under some circumstances welfare per area can decrease as cost levels decrease.
SHARABLE INPUTS, PRODUCT VARIETY, AND CITY SIZES*
Authors: Abdel‐Rahman Hesham M.
Published: July 2006

In this paper, I investigate some of the causes of city formation in spatial economies. A model is proposed in which an intermediate differentiated input shared by more than one industry is the cause of the formation of diversified cities. The desire of both the traded‐good and the local‐good industries to employ a variety of inputs from the intermediate industry provides the reason for the agglomeration of the three industries. In addition, the paper contains a comparative‐statics analysis of the model in an open and a closed‐city framework. It is demonstrated that the larger the city, the more variety of intermediate inputs the city can provide and the more specialized it is in the production of the traded‐good. Moreover, the model suggests that different industrial structures will result in different city Sizes.
TOTAL FACTOR PRODUCTIVITY GROWTH IN MANUFACTURING FURTHER EVIDENCE FROM THE STATES*
Authors: Moomaw Ronald L. , Williams Martin
Published: July 2006

In this paper, we first develop a measure of total factor productivity (TFP) growth and summarize a source‐of‐growth analysis for the manufacturing sector of 48 states. As have others, we find little association between TFP growth differentials and output growth differentials for census regions. At the staterather than the regional level, however, we find a positive association between TFP growth and output growth. We use cross‐sectional data to estimate the determinants of the variation in TFP growth. Two results emerge that are important for regional policy and for understanding national productivity trends. First, state investments in education and in transportation infrastructure may affect TFP growth. Second, energy price increases in the early 1970s had no differential effects on productivity growth across states. We also explore the determinants of manufacturing output growth and find that TFP growth, demand growth, wage growth, wage levels, and state corporate income tax rates are significant.
THE EMPLOYMENT CREATION EFFECTS OF FACTOR SUBSIDIES: SOME ESTIMATES FOR NORTHERN IRELAND MANUFACTURING INDUSTRY, 1955‐1983
Authors: Harris Richard I. D.
Published: July 2006

In this paper, I use estimates of the parameters of an industry demand function and a CES production function for Northern Ireland manufacturing in order to measure the relative impact of factor subsidies on employment, capital, and output. A simulation model is able to differentiate the output and substitution effects of subsidies. The results indicate that since manufacturing industry in the province tends to operate with a labor‐intensive technology and, since its price‐elasticity of demand for output is very low, the employment creating effects of capital subsidies are strongly negative.
AN ALGORITHM FOR THE SPATIAL PRICE EQUILIBRIUM PROBLEM ON A GENERAL NETWORK IN THE SPACE OF THE PATH FLOWS*
Authors: Drissi‐Kaïtouni Omar , Florian Michael
Published: July 2006

ABSTRACT. The spatial price equilibrium on a general network may be formulated as a nonlinear‐cost mathematical programming problem with simple constraints, when the decision variables are the path flows. The solution of this problem is difficult due to the very large number of variables (paths) and the impracticality of generating all the paths from all the origins to all the destinations.

In this paper, we develop a Gauss‐Seidel‐Newton Projection algorithm and combine it with a restriction strategy. That makes it unnecessary to generate a priori all the paths. This algorithm may be further improved by exploiting the equivalence between the spatial price equilibrium on a general network and the network equilibrium. Computational results that we present in this paper demonstrate the efficiency of the proposed solution algorithms.
STACKELBERG GAMES ON A NETWORK WITH COURNOT‐NASH OLIGOPOLISTIC COMPETITORS
Authors: Miller Tanfield C. , Tobin Roger L. , Friesz Terry L.
Published: July 2006

ABSTRACT. We formulate the spatial Stackelberg‐Nash‐Cournot competitive network equilibrium problem as a variational inequality constrained mathematical program. Our model differs from previous models of Stackelberg oligopolistic competition in that it employs explicit shipping decision variables and a general network topology. That is, the production and distribution decisions of the Stackelberg firm are determined simultaneously over a discrete network. We explore the existence of solutions to the proposed model, and we also numerically test a sensitivity analysis based algorithm. In particular, we illustrate how sensitivity analysis results can be used to generate the Cournot reaction necessary to solve the Stackelberg problem.
VARIABLE RETURNS TO SCALE AND REGIONAL RESOURCE ALLOCATION UNDER UNCERTAINTY*
Authors: Ingene Charles A. , Yu Eden S. H.
Published: July 2006

ABSTRACT. This paper investigates the resource allocational implications of intra‐industrial externalities, i.e., variable returns to scale (VRS), in a two‐region general equilibrium model of production under uncertainty. It is shown that most standard results concerning changes in the goods price ratio with constant returns to scale (CRS) under uncertainty generalize to VRS. In contrast, standard results concerning changes in factor endowments extend from CRS to decreasing returns to scale, but not to all permissible levels of increasing returns to scale. Thus, such theorems as factor price equalization and Rybczynski do not generalize to all real‐world levels of VRS.
TELECOMMUNICATION EXTERNAL ECONOMIES, CITY SIZE AND OPTIMAL PRICING FOR TELECOMMUNICATIONS*
Authors: Tofflemire John M.
Published: July 2006

ABSTRACT. In this paper I make use of a city systems model to examine how telecommunications may affect cities in urban systems. The model offers an explanation for the observation that the share of employment in the communication‐intensive producer‐service sector increases with city size in the U.S. I suggest that external scale economies associated with metropolitan employment size, telecommunication network size and total number of intrametropolitan telecommunication contacts are possible explanations for this observation. I go on to suggest that the presence of telecommunication size and contact level external scale economies at the metropolitan level affects the optimal price that should be charged for local telecommunication services.
LOCATION AND SPATIAL PRICING FOR PUBLIC FACILITIES
Authors: Ye Meng‐Hua , Yezer Anthony M.
Published: July 2006

ABSTRACT. Past analysis of public facility location has generally assumed a single goal, such as cost minimization or welfare maximization, and exogenous spatial pricing. This paper considers optimal facility location under a variety of goals. Furthermore, the facility manager is allowed to engage in freight absorption so that the delivered price to consumers need not reflect actual transportation costs. A systematic interaction among management goals, freight absorption, and the optimal size and spacing of public facilities is found.
THE 1987 STOCK MARKET CRASH AND NEW YORK CITY EMPLOYMENT: AN INTERVENTION‐MULTIPLIER ANALYSIS*
Authors: Blackley Paul R.
Published: July 2006

ABSTRACT. Intervention analysis is used to assess the impact of the October 1987 stock market crash upon employment in the securities industry in New York City. The results indicate that the crash has led to a gradual, but permanent reduction of approximately 25,000 jobs in this industry through July 1990. Using a dynamic location quotient methodology to measure basic employment, an estimate of a partial‐adjustment economic base multiplier suggests that total New York City employment is likely to decline by over 100,000 as a result of the crash and subsequent adjustments in the securities industry.
POLLUTION ABATEMENT EXPENDITURES AND REGIONAL MANUFACTURING ACTIVITY*
Authors: Duffy‐Deno Kevin T.
Published: July 2006

ABSTRACT. Using a sample of 63 SMSAs for the years 1974, 1978, and 1982 I find weak support for the argument that environmental regulations retard economic activity. Regression analysis of the relationship between per unit total and air pollution abatement expenditures in the manufacturing sector of these SMSAs and manufacturing employment and earnings levels reveals that these associations are negative but that the magnitudes are relatively small. For example, 10 percent higher per unit total pollution abatement costs are associated with, on average, 1064 fewer manufacturing workers (0.17 percent of total regional employment) in Sun Belt SMSAs during 1982.
KNOWLEDGE IMPACTS OF UNIVERSITIES ON INDUSTRY AN AGGREGATE SIMULTANEOUS INVESTMENT MODEL*
Authors: Florax Raymond , Folmer Henk
Published: July 2006

ABSTRACT. This paper is concerned with the impacts of academic knowledge production (human capital, research, and consultancy) on the investment behavior of the manufacturing industry. Beginning with the neoclassical theory of capital accumulation, a multiregional investment model for non‐residential structures and equipment is developed. Within this model, the knowledge impacts of universities are represented by a diffusion function, which takes into account the possibilities of contagious and hierarchical diffusion of knowledge. Special attention has been given to the development of a theoretically sound and empirically operational investment model, and to the identification of spatio‐temporal correlation. The latter has been approached by means of the use of an EGLS estimator, based on a stationary spatio‐temporal Markov scheme for the residual. The main result of the case study relating to the Netherlands is that academic knowledge production has a significant positive impact on investments in equipment which is strongest in the neighborhood of central places (i.e., following a hierarchical diffusion pattern).
TRAFFIC EXTERNALITIES AND SINGLE‐FAMILY HOUSE PRICES*
Authors: Hughes William T. , Sirmans C. F.
Published: July 2006

ABSTRACT. This study is the first to lend empirical support to the common belief that traffic intensity affects property values. Using a standard hedonic pricing model, this paper investigates the price effects on housing of traffic within a neighborhood. Results using data on single‐family housing transactions for two different locations in a medium‐sized city show a substantial negative price effect of traffic externalities. The magnitude of the effect is shown to be location specific.
ANALYSIS OF THEORETICAL, METHODOLOGICAL AND EMPIRICAL RESEARCH IN THE JOURNAL OF REGIONAL SCIENCE*
Authors: Strathman James G.
Published: July 2006

ABSTRACT. This paper examines the impacts of JRS articles in the areas of theory, methods and empirical analysis, as represented by subsequent citations reported in the Social Sciences Citation Index. A model relating the mix of theoretical, methodological and empirical research published in the JRS to subsequent citations is estimated. The time distribution of theoretical and empirical citations also indicates that the knowledge diffusion process in these two areas may be segmented.
BASING‐POINT PRICING AND INCOMPLETE COLLUSION*
Authors: Levy David T. , Reitzes James D.
Published: July 2006

ABSTRACT. It has been contended that basing‐point pricing (BPP) is not indicative of anticompetitive behavior because a cartel would never attain maximum profits by using BPP. We disprove this contention. BPP is the profit‐maximizing pricing strategy for a cartel that faces competition only at selected locations. In addition, our model explains the emergence of multiple basing points, and establishes that BPP must be consistent with a market‐division scheme.
A NON‐GAUSSIAN TIME SERIES ANALYSIS OF RURAL RETAIL BUSINESS COUNTS*
Authors: Shonkwiler J. S. , Harris T. R.
Published: July 2006

ABSTRACT. Determinants of the number of retail firms serving a rural area have been investigated by drawing on demand threshold analysis to analyze cross‐sectional data. The relevance of such studies to an individual community may be limited if it is characterized by differential levels or unique types of economic activity. Alternatively, conducting the analysis using time‐series data on an individual community may lead to problems associated with non‐normal and nonstationary data. These problems are addressed by formulating a state‐space model of time‐series count data. The discrete, nonnegative nature of count data is accommodated by using a conjugate prior for the Poisson location parameter. A guide function is used to link the prior to the state vector and Bayes rules are used for updating.
VALUING AMENITIES AND DISAMENITIES OF URBAN SCALE: CAN BIGGER BE BETTER?*
Authors: Herzog Henry W. , Schlottmann Alan M.
Published: July 2006

ABSTRACT. Considerable effort has been devoted within the recent literature to the valuation of urban amenities and disamenities, as well as to econometric procedures required for the estimation of their implicit market “prices.” This study questions the equilibrium conditions invoked within this literature to derive estimates of marginal willingness to pay, conditions premised upon “perfect” labor mobility among cities. It is shown that such assumptions need not be invoked if one considers the amenity price‐mobility relationship directly. This is accomplished by appending a binary migration model to a first‐stage wage equation, a procrdure that provides estimates of willingness to pay that can diverge from market‐determined implicit prices. Comparison of such values yields important information on the adequacy of market compensation for disamenities (amenities) throughout metropolitan areas.
CAN REGIONALIZATION OF LOCAL PUBLIC SERVICES INCREASE A REGION'S WEALTH?*
Authors: McAndrews James , Voith Richard
Published: July 2006

ABSTRACT. In the presence of agglomeration and congestion externalities the sequence of location choices made by firms results in an inefficient distribution of economic activity, since individual firms do not bear the congestion costs they impose on other firms. In this paper, we model the interaction of public authority service strategies and firm location choices. We show that a self‐interested regional authority can effect a welfare‐improving distribution of economic activity when compared with an economy without an authority or an economy with local authorities. However, we also show that the conditions under which the authority would induce a welfare enhancing distribution depends on the authority's strategic posture, as well as the nature and size of public subsidies for the authority. The conditions necessary for a regional authority to choose an efficiency enhancing strategy may be difficult to achieve.