bluuebunny/crossref_metadata_2025 huggingface dataset:
SPATIAL COMPETITION À LA COURNOT: PRICE DISCRIMINATION BY QUANTITY‐SETTING OLIGOPOLISTS*
Authors: Anderson Simon P. , Neven Damien J.
Published: July 2006

In this paper, we consider oligopolistic competition in a spatial model when firms take care of goods' delivery and discriminate among consumers. Firms compete by setting quantity schedules independently over space. We show that under general conditions a Nash equilibrium in this game exists and is unique. In equilibrium, firms’ markets overlap, a feature which accords with intuition and empirical observations. Over the interval between two firms, the equilibrium spatial price schedule is quasi‐concave (quasi‐convex) when transport costs are concave (convex). With linear transport costs, the model predicts uniform delivered pricing. Uniform pricing could moreover be obtained by a combination of increasing returns to volume in transportation together with concavity of unit transport costs in distance.
A NOTE ON THE LOCATION OF MEDICAL FACILITIES
Authors: Drezner Zvi
Published: July 2006

In this note, I present a method to estimate the desired distance between medical facilities. The survival rate of patients improves when the facility is larger, however larger facilities result in a longer driving distance to the facility which decreases the survival rate. I identify the desired distance between facilities for which the survival rate is maximized.
A TRANSLOG APPROACH TO CONSUMER SPATIAL BEHAVIOR*
Authors: Lo Lucia
Published: July 2006

With the view that travel behavior stems from the principle of utility maximization, in this paper I present a spatial translog demand model that accounts for interdependence among travel alternatives and that handles varying elasticities of substitution for various destination pairs. Using simulation as the mode of inquiry, this model describes the effect of spatial size, spatial configuration, and spatial substitution on spatial interaction. In addition to indicating how varying spatial sizes and configurations affect the average trip length and the trip making pattern, the simulation results also point out the possible effect of having spatially dependent locations in the system. Competing destinations increase the attractiveness of nearby locations, and complementary destinations reduce the impeding effect of space. The model is primarily relevant to the demand for shopping trips.
THE ASSUMPTION OF EQUILIBRIUM IN THE ANALYSIS OF MIGRATION AND INTERREGIONAL DIFFERENCES: A REVIEW OF SOME RECENT RESEARCH*
Authors: Evans Alan W.
Published: July 2006

This paper questions the plausibility of the assumption of interregional equilibrium in recent research into migration and the valuation of amenities in the United States. It is shown that it is difficult to develop a satisfactory explanation for continuing net migration which is compatible with the equilibrium assumption, and that recent relevant research generally fails to support the idea that the U.S. economy is in equilibrium. The association of higher rent levels with in‐migration is explained as a short‐run phenomenon. If the spatial economy is in disequilibrium, then the valuations of amenities assuming equilibrium will be biased, being probably too low in areas of net in‐migration and too high in areas of net out‐migration.
FORECASTING TURNING POINTS IN METROPOLITAN EMPLOYMENT GROWTH RATES USING BAYESIAN TECHNIQUES
Authors: LeSage James P.
Published: July 2006

In this paper, I adapt to the regional level a Bayesian approach developed by Zellner, Hong, and Min (1990) to analyze forecasts of turning points in a multicountry setting. The techniques applied to a regional setting treat the individual metropolitan areas in the same way that Zellner, Hong, and Min treated countries. The findings in this study indicate that the techniques and models employed by Zellner, Hong, and Min work just as well at the metropolitan‐area level as they did in the multicountry setting. The best models, from those studied here, forecast around 70 percent of the downturns and 80 percent of the upturns correctly, which compares favorably to the performance of the same techniques in Zellner, Hong, and Min.
THE PURE THEORY OF HOUSEHOLD LOCATION AN AXIOMATIC APPROACH*
Authors: Turnbull Geoffrey K.
Published: July 2006

In this paper, I present an axiomatic basis for the neoclassical model of household location in a monocentric urban area. I generalize the existing framework and demonstrate that many of the conclusions derived using parametric models continue to hold even without the popularly assumed well‐behaved utility and transportation cost functions.
TWO‐DIMENSIONAL BERTRAND COMPETITION: BLOCK METRIC, EUCLIDEAN METRIC, AND WAVES OF ENTRY*
Authors: Braid Ralph M.
Published: July 2006

This paper examines two‐dimensional spatial competition, with Bertrand price determination. With a block metric, equilibrium prices are significantly lower when market areas are squares than when they are diamonds (rotated squares) of the same size. If demand density grows, waves of entry occur, and the shapes of market areas change from squares to diamonds and back to squares again. The former change leaves prim unchanged, whereas the latter cuts prices in half. Results are also derived for a Euclidean metric, with square and hexagonal market areas. Optimal waves of entry are examined with the block metric. With either metric, the socially optimal market shape becomes suboptimal if market areas are constrained to be of the zero‐profit size.
THE IMPACT OF STATE LAND‐USECONTROLS ON RESIDENTIAL LAND VALUES
Authors: Shilling James D. , Sirmans C. F. , Guidry Krisandra A.
Published: July 2006

In this paper, we examine the effects of state land‐use controls on the aggregate demand and supply of residential land. Previous studies have examined the effect of land‐use regulation on housing prices using single‐equation estimation. We estimate a three‐equation intejurisdidional supply‐demand model of land‐use controls. Our results suggest that land‐use regulations have a significant impact on both the demand and supply of residentid land as expected.
THE INFLUENCE OF HUMAN CAPITAL INVESTMENT ON MIGRATION AND INDUSTRY CHANGE*
Authors: Shaw Kathryn L.
Published: July 2006

ABSTRACT. Individuals’human capital investments in their regions, industries, and occupations are measured as a function of the years they spend in their current region, industry, or occupation, and these investments are shown empirically to influence migration. There is an interesting life cycle pattern to migration: it falls rapidly with new investments, but then resurfaces as an opportunity to renew investments and increase the growth rate of income. Income regressions substantiate the life cycle path of income growth implied by the migration model.
PROPERTIES OF MAXIMUM LIKELIHOOD ESTIMATES OF GRAVITY MODEL PARAMETERS*
Authors: Sen Ashish , Matuszewski Zbigniew
Published: July 2006

ABSTRACT. We give a very simple formula for obtaining covariance matrices of gravity model parameter estimates. We investigate bias and robustness of parameter estimates, as well as the convergence of the procedure given in Sen (1986) for obtaining these estimates.
SPATIAL PRICING IN INTERDEPENDENT MARHETS*
Authors: Sheppard Eric , Haining Robert P. , Plummer Paul
Published: July 2006

ABSTRACT. Conditions for spatial price equilibrium are derived for a set of firms in oligopolistic spatial competition, distributed at fixed locations in a heterogeneous region where consumer purchasing patterns are a probabilistic function of the price distribution rather than a deterministic function of proximity to firms. The resulting prices vary with accessibility to consumers or with the degree of local spatial monopoly, and result in non‐zero profits for firms. Conditions describing the existence and stability properties of this spatial price equilibrium are defined, and are shown to be equivalent for two different hypotheses concerning disequilibrium pricing behavior: a partial price adjustment model and a Bertrand game. For two different profit goals, total profit maximization and profit rate maximization, it is shown that a spatial price equilibrium exists and is at least locally quasi‐stable.
LÖSCHIAN COMPETITION VERSUS SPATIAL COLLUSION: PRICE AND WELFARE COMPARISONS*
Authors: Hwang Hong , Mai Chao‐cheng , Ohta Hiroshi
Published: July 2006

ABSTRACT. Löschian duopoly under heterogeneous cost conditions is examined to show that it is not equivalent, contra past findings, to spatial collusion. Moreover, within the confines of the assumed demand and cost conditions spatial collusion is shown to be superior to Loschian competition in terms of both (aggregate) consumer surplus and producer surplus, which implies a possible welfare gain from collusion. A general, if not the general, prices‐and‐welfare comparison of alternative pricing schema including collusive, Löschian, and optimal pricing is summarily presented in a table.
SPATIAL PRICE COMPETITION WITH CONSUIMERS ON A PLANE, AT INTERSECTIONS, AND ALONG MAIN ROADWAYS*
Authors: Braid Ralph M.
Published: July 2006

ABSTRACT. This paper examines two‐dimensional price competition on a plane, with a block metric and a square grid of main roadways. One store is located at each intersection of main roadways. Consumer locations include a uniform distribution over the plane, linear concentrations along main roadways, and point concentrations at intersections. Bertrmd‐Nash mill price competition is examined first. The equilibrium price depends on the relative numbers of consumers in the three types of locations (and on travel costs per mile and the spacing between stores). If too many consumers are in each point concentration, then the price equilibrium is undermined by a high‐price strategy or by mill‐price undercutting. Spatial competition with price discrimination is examined next, and compared to Bertrand‐Nash mill price competition.
MULTIREGIONAL STOCK ADJUSTMENT EQUATIONS OF RESIDENTIAL AND NONRESIDENTIAL INVESTMENT IN STRUCTURES*
Authors: Rickman Dan S. , Shao Gang , Treyz George I.
Published: July 2006

ABSTRACT. Despite the importance of predicting investment expenditures for regional economic forecasting and policy simulation, little has been published on predicting regional investment expenditures. The primary reason is the lack of data on regional investment and capital stocks. Using two constructed investment data sets, this paper specifies and econometrically estimates stock adjustment equations of residential and nonresidential investment for the fifty states plus Washington, D.C. Unique aspects of the approach include maximum use of United States and regional data, and pooled estimation. The estimated pooled equations provide satisfactory historical fits to investment for most states. Also, the paper presents out‐of‐sample forecasts and simulated investment responses to an exogenous production increase.
TIME SERIES AND TURNING POINT FORECASTS: A COMPARISON OF ASSOCIATIVE MEMORIES AND BAYESIAN ECONOMETRIC TECHNIQUES APPLIED TO LESAGE'S DATA*
Authors: Moore James E. , Kalaba Robert , Kim Moon , Park Hyeon
Published: July 2006

ABSTRACT. Associative memory techniques are drawn from the artificial intelligence literature, and have demonstrated considerable utility for parameter identification in dynamical systems. Previous turning point forecasts constructed by LeSage are compared to forecasts generated by associative memories and simple autoregressive models. Both the associative memories and the autoregressions perform as well or better than the more complicated econometric procedures described by LeSage, with the exception of West and Harrison's (1989) dynamic linear model specification. Extensions are suggested.
SPECIFICATION AND ECONOMETRIC IMPROVEMENTS IN REGIONAL PORTFOLIO DIVERSIFICATION ANALYSIS
Authors: Hunt Gary L. , Sheesley Timothy J.
Published: July 2006

ABSTRACT. We develop an alternative specification of the regional portfolio diversification problem that explicitly incorporates important information on regional economic structure and avoids certain inconsistencies in the traditional specification with respect to what constitutes the choice set. We also implement improved econometric procedures for estimating the required parameters and provide an empirical example using 1987 data for the Colorado economy to illustrate the potential differences in sectoral allocations obtained when applying our alternative approach versus the traditional one.
LOCATING A SINGLE NEW FACILITY AMONG EXISTING, UNEQUALLY ATTRACTIVE FACILITIES*
Authors: Drezner Tammy
Published: July 2006

ABSTRACT. The location of a new facility in a competitive environment is investigated. It is assumed that customers patronize the facility with the highest utility value rather than the closest facility. Simulations show that the new approach yields a superior location in terms of market size captured. Sensitivity analyses of the problem parameters illustrate the sensitivity of the location and the sensitivity of the market size captured to the facility's quality.
THE BUILD‐UP AND DURATION OF SUBSIDY‐INDUCED EMPLOYMENT EVIDENCE FROM U.K. REGIONAL POLICY*
Authors: Wren Colin
Published: July 2006

ABSTRACT. The paper takes microlevel data on U.K. regional policy instruments and other financial assistance payments to industry to examine the time profile of assisted employment up to five years after the date of assistance. The theoretical analysis indicates factors bearing on the employment effect of industrial assistance and highlights the possibly key role played by the firm's access to private funds. The results from the regression analysis indicate that both the build‐up and duration of subsidy‐induced jobs vary between assistance form and firm, and that assistance is generally ineffective in large firms. Elsewhere, assisted jobs accumulate over a period of three years, but then are lost to policy at high rates.
OPTIMALITY OF RECYCLING AND THE LOCATION OF A RECYCLING CENTER
Authors: Highfill Jannett , McAsey Michael , Weinstein Robert
Published: July 2006

ABSTRACT. Consider a community investigating the integration of recycling into its waste management program. Even if (1) the county's citizens do not gain utility from recycling, (2) landfill space is plentiful, and (3) the market price for recyclables is zero, recycling can still be optimal for a local government. By determining the relationship between the amount of recycling and the location of a recycling center, conditions are identified under which recycling will reduce total waste management costs enough that municipal recycling will be optimal. In addition, it is shown that the likelihood of municipal recycling increases with the size of the city.
THE URBAN ENTERPRISE ZONE*
Authors: Ge Wei
Published: July 2006

ABSTRACT This paper provides an analytical framework of urban enterprise zones in a context of regional development. The direct and indirect impacts of urban enterprise zones on regional economies such as job creation, urban unemployment, agricultural wage and changes in the regional economic structure are analyzed by incorporating the intermediate goods sector. The study suggests that the establishment of urban enterprise zones is a beneficial and effective policy instrument which can be used in promoting urban renewal and regional economic growth.
THE ECONOMIC LAW OF MARKET AREAS: A FURTHER DISCUSSION*
Authors: Parr John B.
Published: July 2006

ABSTRACT. The Economic Law of Market Areas, so named by Fetter, is concerned with the division of a territory between two competing centers. It is argued that this Law can be conveniently examined in terms of six cases, each of which is specified by a combination of differentials in freight rates and prices at the two centers. The locational significance of each case is considered, along with the form and dimensions of the market‐area boundary between the two centers. Three of the cases are each shown to subsume a special case. It is further shown that for any case except one, a reversal of the differentials between the two centers, while resulting in a symmetrically‐equivalent outcome, requires a different (and usually substantial) respecification of the case.
THE EFFECTS OF TAXES, EXPENDITURES, AND PUBLIC INFRASTRUCTURE ON METROPOLITAN AREA EMPLOYMENT*
Authors: Dalenberg Douglas R. , Partridge Mark D.
Published: July 2006

ABSTRACT. Data for 28 metropolitan areas over a 15‐year period are used to determine the impacts of government spending, taxes, and public infrastructure on total employment and disaggregated employment. After carefully controlling for the government budget constraint we find that taxes are negatively related to total employment and education spending is positively related to total employment. Nevertheless, we find that it is difficult for metropolitan areas to influence the composition of their employment with government tax and expenditure policies. Moreover, at current levels of public infrastructure, marginal changes in infrastructure have no strong effect on employment.
DEVELOPMENT POLICIES, URBAN UNEMPLOYMENT AND DEFORESTATION: THE ROLE OF INFRASTRUCTURE AND TAX POLICY IN A TWO‐SECTOR MODEL*
Authors: Jones Donald W. , O'Neill Robert V.
Published: July 2006

ABSTRACT. We model an economy of a developing country that produces an exportable manufactured good in an urban sector and a nontradable rural good. Manufacturing faces a fixed wage, which encourages urban unemployment. Changes in cultivated area in the rural sector involve deforestation or reforestation at frontiers. Government taxes to pay for urban infrastructure that assists the manufacturing sector. Increases in urban infrastructure may relieve or exacerbate frontier deforestation but expands manufacturing employment and reduces urban unemployment. Rural transportation improvements exacerbate frontier deforestation but expand employment in the urban manufacturing sector. A larger population, ceteris paribus, widens the rural‐urban wage gap and exacerbates deforestation, but may cause manufacturing employment to expand or contract.
SELECTION BIAS IN SPATIAL ECONOMETRIC MODELS
Authors: McMillen Daniel P.
Published: July 2006

ABSTRACT. The problem of spatial autocorrelation has been ignored in selection‐bias models estimated with spatial data. Spatial autocorrelation is a serious problem in these models because the heteroskedasticity with which it commonly is associated causes inconsistent parameter estimates in models with discrete dependent variables. This paper proposes estimators for commonly‐employed spatial models with selection bias. A maximum‐likelihood estimator is applied to data on land use and values in 1920s Chicago. Evidence of significant heteroskedasticity and selection bias is found.
EMPIRICAL ANALYSIS OF OFFICE RENT AND AGGLOMERATION ECONOMIES: A CASE STUDY OF TORONTO*
Authors: Mun Se‐il , Hutchinson Bruce G.
Published: July 2006

ABSTRACT. An equilibrium model of office location is applied and tested in the Toronto metropolitan area. The model focuses on the role of communication among firms which is the driving force behind the spatial agglomeration of office firms. The model calculates the equilibrium floor rent in each district, given the existing building stock. The performance of the model is tested in terms of the goodness of fit between observed and estimated office rent in each district. By using the model, we estimate the value of agglomeration economies which is defined as changes in productivities caused by increases in the number of office firms. It is shown that the agglomeration economies in the office sector are much larger than those in manufacturing, and the external effects of agglomeration are considerably large.
THE STRUCTURE OF METROPOLITAN FACTOR AND PRODUCT MARKETS*
Authors: Crihfield John B. , Panggabean Martin P. H.
Published: July 2006

ABSTRACT. In this study we use a translog profit function and iterate seemingly unrelated regressions to estimate a system of factor demand and output supply functions for metropolitan economies. Our sample includes all metropolitan areas defined by the Census in 1977 for the period 1962 to 1982. Estimation shows that all price elasticities are elastic and that the signs are as expected. These results hold true for virtually all model specifications. Our findings indicate that federal, state, and local tax policies have significant impacts on factor demand and output supply. Public investment plays a positive and significant, but small, role in increasing output and in complementing other factors, although this influence has declined over time. Additionally, capital provided by the private sector has a substantially larger impact on output and employment than does capital provided by the public sector.
THE SHORT‐RUN AND LONG‐RUN FACTOR‐MARKET CONSEQUENCES OF IMMIGRATION TO THE UNITED STATES*
Authors: Greenwood Michael J. , Hunt Gary , Kohli Ulrich
Published: July 2006

ABSTRACT. This paper applies the production‐theory approach to assess the impact on domestic wages and employment of immigration to the United States. Inputs are disaggregated between recent immigrants, non‐recent immigrants, native workers, and capital. Census cross‐sectional data for 1980 and for 123 metropolitan areas are used. Empirical estimates are reported for alternative functional forms with special attention devoted to required curvature conditions which have frequently been violated in previous work. Elasticity estimates are reported for alternative settings, including for the short run where we view domestic factor prices as given and the long run where we treat them as flexible.
MILL PRICING AND SPATIAL PRICE DISCRIMINATION MONOPOLY PERFORMANCE AND LOCATION WITH SPATIAL RETAIL MARKETS*
Authors: Claycombe Richard J.
Published: July 2006

ABSTRACT. Most of the monopoly spatial price discrimination literature explicitly assumes uniform population density over space. It also implicitly assumes that firms (plants) are spatially isolated from each other with production and retail points that coincide in location. While departures from these assumptions have been explored separately in the literature, it remains to examine performance and location when these assumptions are relaxed simultaneously. What emerges in this paper is a model where density functions approximate a pair of cities isolated from other cities. Each city has its own retail market, while the location of a single production or wholesale point is determined by characteristics of the two markets. Comparisons of mill pricing and spatial price discrimination found in the spatial monopoly literature can be interpreted as special cases of the more general framework provided here.
SOME NOTES ON RISK
Authors: Parker H. R.
Published: July 2006

Summary: :Part I. The propensity to conserve; Part 2. Eutrepreneur's personal experience; Part 3. The influence of the degree of security.
INVESTMENT ALLOCATION IN A FULL EMPLOYMENT ECONOMY
Authors: Neale A. B.
Published: July 2006

Summary: § 1. Introductory Remarks. ‐ § 2 Basic assumptions and definitions. ‐ § 3. The constant technology models. ‐ § 4. The changing technology model. ‐ § 5. Conclusions.
IS INVESTMENT REALLY UNIMPORTANT?
Authors: Massell B. F.
Published: July 2006

Summary. § I. A simple model. ‐ § 2. A generalized model. ‐ §’3. Empirical results. ‐ § 4. Interpretation of the results. ‐ § 5. An interindustry com‐rison. ‐ § 6. Results of the interindustry analysis. ‐ Appendices.
ON THE ESTIMATION OF A COMPLETE SYSTEM OF DYNAMIC DEMAND FUNCTIONS
Authors: Mattei Aurelio
Published: July 2006

Summary: This paper examines the econometric problems arising in the estimation of a complete system of dynamic demand functions. An estimation procedure that takes into account both contemporaneous and non‐contemporaneous correlation is discussed. The proposed method is an adaptation of Parks‐Zellner estimation technique to the case of a moving average process. The procedure is then used for the estimation of the demand for 14 commodity groups. The data are Swiss time series for the period 1948–69. A significant improvement in the results is obtained.
AN ASYMPTOCALLY UNBIASED TWO‐STAGE LEAST SQUARES ESTIMATOR OF THE STRUCTURAL DISTURBANCE VARIANCES AND THE BIAS
Authors: Kymn Kern O
Published: July 2006

Abstract

Let Σ represent the covariance matrix of the structural disturbances of a simultaneous equations model. The conventional consistent estimator of the elements of Σ is usually given as the mean 2SLS residuals. However, neither the bais nor the asymptotic bias of the estimator of Σ by 2SLS have been found. This paper analytically derives an asymptotically unbiased estimator of Σ by 2SLS and determines the bias for finite samples. It is shown that the bias vanishes asymptotically. Then the paper suggests that the derived estimator may be applied in the second stage as well as in the third stage of 3SLS estimation. Other possible applications are indicated.
THE MINIMUM DISTANCE CONSISTENT 2 SLS ESTIMATOR OF THE STRUCTURAL DISTURBANCE VARIANCE
Authors: Kymn Kern O.
Published: July 2006

Abstract

Let Σ represent the covariance matrix of the structural disturbances. Following Theil the standard consistent estimator of the elements of Σ is given as the mean 2 SLS residual sum of squares. This paper shows the fact that there is a class of consistent estimators of Σ and that the standard estimator is not a minimum distance estimator. It derives the minimum distance consistent 2 SLS estimator of Σ. Then the paper suggests that the derived estimator be applied in the second stage as well as in the third stage of 3 SLS estimation. Other possible applications are indicated.

This paper contains an improvement and reformulation of the results previously derived by the author on a related subject that appeared in Metroeconomica [9]. This paper contains an improvement over the previous result in that the derived estimator in this paper possesses not only consistency but also the minimum distance property.
THE RATCHET EFFECT IN MONEY DEMAND
Authors: Hosek William R.
Published: July 2006

This paper explores the response of money demand to relative changes in income using U.S. quarterly data for the period 1948–1970. We find that exchange media and time deposits differ in their response to relative changes in income with implications for the inclusion of time deposits in the definition of money.
A STOCHASTIC MODEL OF SALES RESPONSE TO ADVERTISING
Authors: Tapiero Charles S.
Published: July 2006

A stochastic model of advertising response is developed. It is shown that the evolution of mean sales is equivalent to Vidale‐Wolfe type advertising models and to Stigler's diffusion model. A stochastic framework for advertising is found here to be ideally suited for the estimation of market parameters, for hypothesis testing of advertising models, and for studying the risk implications of an adversiting policy.
ALTERNATIVE SIGNIFICANCE TESTS FOR 2SLS ESTIMATED PARAMETERS: SOME FURTHER MONTE CARLO EVIDENCE AND COMMENT
Authors: Kymn Kern O.
Published: July 2006

Following Green's study (Metroeconomica, Vol. XXV, 1973) the performance of finite sample approximations of the variance estimators in the test statistics for 2SLS estimated coefficients has been investigated by a Monte Carlo siudy. A priori the variances should be positive. The Monte Carlo experiments produced evidence that a large number of finite sample approximations of the computed variances were negative. The evidence indicates that the usefulness of the usual finite sample approximations formula for variance estimators in the 2SLS test statistics is severely limited.
PORTFOLIOS WITH RESERVE COEFFICIENT
Authors: LeBlanc Gerald , van Moeseke Paul
Published: July 2006

This article offers an attempt at defining and computing the coherence of, and substitution among, the standard instruments of monetary policy, viz. open market policy, rate of interest, and reserve coefficient.

A number of separation theorems are proved and a unit‐elasticity rule derived for the tradeoff between the reserve coefficient and the premium on risky assets.

Finally, for any given interest rate we select an optimal portfolio by the maximal‐caution criterion, which minimizes the probability of failure.
DEMAND UNCERTAINTY, MONOPOLY WITH TWO‐STAGE INPUT DECISIONS, AND CORPORATION TAXES
Authors: Ishii Yasunori
Published: July 2006

This paper attempts to investigate the effects of changes in the lump sum tax and the profit tax rate on the input, output and price decisions of the risk averse monopoly under demand uncertainty. It is assumed that, while the monopoly must determine its capital ex ante, it may modify the output and price determinations through adjusting its labor ex post.

As the results of its analysis, the paper presents the new propositions with respect to the corporation taxes which have never been shown in both the deterministic models and the models which exclude the possibility of two‐stage input decisions, even under demand uncertainty.
HYBRID LOG‐LINEAR MODELS FOR SPATIAL INTERACTION AND STABILITY ANALYSIS(*)
Authors: Brouwer F. , Nijkamp P. , Scholten H.
Published: July 2006

This paper discusses the relevance of hybrid log‐linear models for applied research based on categorial data. Such models may lead to statistically significant results based on a reduced number of parameters.

The use of long‐linear modeling is illustrated by means of spatial interaction analysis with categorial data. Special attention is given to the problem of so‐called structural zeros and of stability of spatial interaction patterns.

Various constraints on the set of interaction parameters emerging from the off‐diagonal elements of a spatial interaction matrix are taken into account by means of an entropy function. The analysis is illustrated by means of an empirical application to migration flows in Dutch housing market areas.
A NOTE ON IS‐LM AND STOCK ADJUSTMENT PROCESSES
Authors: Boitani A. , Christodoulakis N.
Published: July 2006

A discrete‐time model of a closed economy is employed in order to introduce the whole dynamics of stock adjustments in the IS‐LM diagram. Discrete‐time modeling allows us to represent the traverse process from the initial stationary state equilibrium to the new one by means of a family of intermediary IS(t) and LM(t) curves intersecting at each t to determine the appropriate short run equilibrium. Sufficient conditions for the dynamic process to be non‐cyclical are derived under plausible assumptions. Two appendices provide the stability analysis and a numerical simulation of the model used.
A THEORETICAL ANALYSIS OF SISMONDI'S TABLEAU ECONOMIQUE
Authors: Dome Takuo
Published: July 2006

This paper submits Sismondi's calculation example presented in his paper of 1824 («On the Balance of Consumption and Production») in the form of an input‐output table. This paper also examines Sismondi's argument concerning technological progress and under‐consumption. The effect of an increase in labour productivity in one particular sector on the economy as a whole is analysed in the framework of a simple reproduction system. Subsequently the model is applied to a growth economy, and the difficulty of attaining balanced growth in Sismondi's system is discussed.
UNIQUENESS OF PERIODIC ORBITIS IN LIENARD‐TYPE BUSINESS‐CYCLE MODELS
Authors: Galeotti M. , Gori F.
Published: July 2006

We study three different versions of the Kaldor's 1940 Business‐Cycle Model (13, and we show that they can all be reduced, through suitable changes of variables, to a planar dynamical system of Lienard‐type.

By applying a classical result due to A. Filippov (8) and a quite recent theorem of the Chinese mathematician Zhang Zhi Fen (19, it is easily proved that our systems present a unique attracting limit‐cycle encircling the only existing equilibrium.

Our analysis does not require any extra hypothesis regarding the symmetry of the investment and saving functions, except the «classical» ones and those needed to reducing the system to Lienard form.

It extends, so far, a few previous results obtained by H.W. Lorenz (16) on the very same model.
AN ALTERNATIVE TO GOODWILL IN ADVERTISING COMPETITION MODELS
Authors: Dominique C. René
Published: July 2006

The concept of a goodqill stock is often used to model advertising competition under dynamic conditions. Goodwill is unobservable and consequently leads to results that are fuzzy and untestable. This paper dispenses with that concept and uses instead a Lanchester‐Kimball structure to derive an advertising response function and other insights which are empirically testable. It also examines the factors behind firms' dominance and their individual impact on equilibrium market share.
IMPERFECT INFORMATION AND THE CHOICE BETWEEN COLLUSION AND HORIZONTAL MERGER
Authors: De Fraja G.
Published: July 2006

If the payoff obtained by the parties of an agreement depends on the values set for variables the value of which cannot be described precisely or monitored accurately, then the first best outcome may not be achieved. It is shown here that in some cases a second best long term agreement gives the parties a higher payoff, in other cases a short term arrangement is preferred.

The interpretation of this result given in the paper is that when a long term contract is preferable, then firms are unable to commit themselves to it through a collusive agreement, and they will try to merge. Vice versa, no need to integrate arises when the preferred second best agreement is the short term one. The last section provides an example, where advertisement effort is non‐contractible, while prices are.
INFLATION AND THE TIMING OF PRICE CHANGES (*)
Authors: McMillan John , Zinde‐Walsh Victoria
Published: July 2006

Consider an oligopolistic industry in which the firms produce perfect substitutes and incur transaction costs of changing price. Under constant inflation, there is an equilibrium in which the firms change their nominal prices at equally spaced time‐points. Increasing the inflation rate increases the size of price changes, increases the frequency of price changes, and increases the average real price paid by buyers. The analysis derives its significance from its implications for the welfare costs of inflation: the inflation‐induced distortions in relative prices are larger the more sticky nominal prices are; and are larger the greater the tendency for firms to stagger (rather than synchronize) their price changes.
OPTIMAL INTERNATIONAL DEBT AND ENDOGENOUS TIME PREFERENCE IN A DEMOGRAPHICALLY DIVIDED WORLD (*)
Authors: van Dalen Hendrik P.
Published: July 2006

The international transmission of shocks in population growth and technology is examined in an interdependent two‐country world economy; decisions concerning the intertemporal allocation are made by social planners with an infinite horizon and an endogenous rate of time preference. Steady state shocks in population growth are shown to be negatively transmitted to the rate of time preference. In the steady state, the optimal foreign debt is determinate and it brings about a convergence of time preference. The net creditor and debtor positions in the steady state depend on the discount rate functions, the states of technology and the rates of population growth.
UNEASY POLYGONS: ENVIRONMENT AND SECURITY WITHIN THE SYSTEM OF AIMS OF AN ECONOMY
Authors: Eichhorn Wolfgang
Published: July 2006

Two of the most important challenges in the last decade of our century are the problems of «environmental protection» and «technological risks». As a response to these challenges the public calls for «minimization of environmental deterioration» and «maximization of security». These demands are empty formulae if other requirements are ignored.

Both demands have to be stated within the framework of the other aims that are important in a modern economy.

In this connection, we extend the well‐known uneasy quadrangle of economic policy to what we call the uneasy nonagon of economic, environmental and security policy. Since the nine aims of this nonagon are, at least in part, not very consistent, a wealth of difficult problems arise. Solutions to these problems cannot be given immediately. This paper is intended to draw attention to the form and the formulation of the problems. In this context, the requirements of «environmental protection» and «security» are the focal points of the paper.
EXTERNALITIES IN PRODUCTION AND CHAOS
Authors: Rauscher Michael
Published: July 2006

The paper investigates the stability of a competitive equilibrium if there are externalities in production. There is a positive externality associated with capital, e.g. a spill‐over of technological knowledge, and a negative externality associated with an environmental factor of production. Firms are assumed not to take these externalities into account when they adjust their factor allocation to changes in factor prices It is shown that all types of adjustment paths. including chaotic ones, are feasible.
MULTIPLIER EFFECTS IN A NEOCLASSICAL MODEL WITH A PRODUCTION LAG(*)
Authors: Thomas J.
Published: July 2006

The paper examines the effects of introducing a one‐period production lag into what is otherwise a fairly standard macroeconomic model. Depending upon the relative elasticities of aggregate demand and supply it is possible that such a neoclassical model can produce extreme Keynesian results.

The response of output to changes in government consumption can be greater even than the simple multiplier; this effect can be greater under rational expectations than under adaptative expectations. Introducing an efficiency wage story into the model leads naturally to the existence of a Phillips curve.
CENTRAL GOVERNMENT BUDGET DEFICITS AND EX ANTE REAL LONG TERM INTEREST RATES IN ITALY: AN EMPIRICAL NOTE FOR 1955‐1989
Authors: Cebula Richard J.
Published: July 2006

This paper empirically investigates the impact of central government budget deficits upon interest rates in Italy. The period studied runs from 1955 to 1989, and annual data are used. The interest rate measure is the ex ante real rate of interest. It is found, using an instrumental variables technique to control for the endogeneity of the budget deficit, that the budget deficit raises the ex ante real interest rate in Italy.
STRATEGIC BUYERS IN A DURABLE GOODS MONOPOLY
Authors: Colangelo Giuseppe
Published: July 2006

In a simple two‐period durable goods monopoly model, we study the effect of buyer behaviour on the monopolist's payoff. When the buyer behaves strategically, the monopoly seller gains from not being committed; the usual cost of a no‐commitment argument collapses.
COMPETING VIEWS OF THE MONEY SUPPLY PROCESS: THEORY AND EVIDENCE
Authors: Palley Thomas I.
Published: July 2006

This paper examines three competing approaches to the determination of the money supply. The first approach is labelled the pure portfolio approach, and corresponds to the orthodox approach to the money supply. The second approach is labelled the pure loan demand approach, and corresponds to the Post Keynesian accommodationist view of endogenous money. The third approach is labelled the mixed portfolio‐loan demand approach, and corresponds to the Post Keynesian structuralist view of endogenous money. The critical theoretical difference between the latter two models is identified in terms of the importance of the private initiatives of banks in accommodating expansions of loan demand. The paper then provides Granger‐causality evidence on the three approaches, and concludes in favor of the mixed portfolio‐loan demand approach.
GEOMETRICAL TRIPARTITION OF THE TOTAL EFFECT ON CAPITAL OF A CHANGE IN THE PROFIT RATE (THE DISCRETE CASE)
Authors: D'Ippolito Gioacchino
Published: July 2006

The author shows that the effect on the product‐capital ratio of an increase in the profit rate from below to above the rate that marks the switching from technique I to technique 11 can be geometrically split up into i) two price effects resulting from price changes within each technique and ii) an intermediate real effect, in general well‐behaved, consequent to the switching from the first to the second technique. The product‐capital ratios can be correctly determined, and are as such “invariant” with respect to the numéraire chosen, only if derived from wage curves that are constructed by assuming as numéraire a basket whose composition is the same as the net product. This does not invalidate the proposition that the capital‐product ratio, conceived as the value of capital per physical basket of product, and its response to a rise in the profit rate vary with the numéraire chosen.
STATISTICAL EQUILIBRIUM IN A SIMPLE LABOR MARKET
Authors: Foley Duncan K.
Published: July 2006

A simple model of the labor market is analyzed using the concept of statistical equilibrium. Involuntary unemployment is revealed to be an equilibrium phenomenon in this approach. The consequences of wage subsidies depend critically on whether they are paid to workers or to employers.
Artefacts in immunofluorescence microscopy: a potential source of diagnostic confusion
Authors: Jenkins Rachel E. , Bhogal Balbir S. , Willsteed Elizabeth , Black Martin M.
Published: July 2006

The success of the immunofluorescence technique has as its basis a specific immune reaction which is readily influenced by physicochemical variables. In all procedures careful examination with appropriate selection of materials and conjugates and careful observation must be made. Proper controls are required to interpret specific reactions and distinguish these from nonspecific artefacts and other patterns which cause diagnostic confusion. The recognition of immunofluorescence artefact patterns is essential to the trainee who is gaining experience in immunofluorescence microscopy. However, the correct diagnosis in the individual patient is further insured by correlating all the relevant clinical and histological details with the immunofluorescent findings.
Clinical, microscopic and ultrastructural alterations due to mustard gas poisoning
Authors: Dowlati A. , Dowlati Y. , Hermanns‐Lě T. , Piérard G.E.
Published: July 2006

Yperite, as a chemical weapon, is responsible for severe cutaneous alterations. In this article we review the clinical aspects of mustard gas poisoning and present the electron microscopic changes found in the epidermis and superficial dermis. Sublethal and lethal alterations were present in keratinocytes and melanocytes. Other cytological aspects indicated attempts at cell division and increased metabolic activity. Some atypical features raise the possibility of mutagenesis.
Receptor site dominance after hair transplantation in alopecia areata
Authors: van der Steen P.H.M. , Happle R.
Published: July 2006

A 32‐year‐old woman presented with a patchy and ophiasis type of alopecia areata. She reported that at the age of 25 she had undergone plastic surgery for the same hair problem. In the occipital region, partial excision of bald areas and transplantation of punched grafts from unaffected areas of her scalp had been performed, but these grafts completely lost their hair shortly after transplantation. At the age of 30 she had developed, in addition, patchy alopecia areata in other areas of the scalp. The present observation of receptor site dominance of the area affected by alopecia areata suggests that the primary abnormality is situated in the affected tissue, and that the disease is caused by local spreading of a hitherto unknown factor.
Chronic giant ulceration of the vulva in an HIV seropositive woman
Authors: Carlin E.M. , Tomlinson D.R. , Byrne M.A. , Harris J.R.W.
Published: July 2006

Herpes simplex virus (HSV) infection is a common cause of genital ulceration. Primary presentation is usually with multiple, small, discrete, tender ulcers. We report an unusual case of chronic, giant ulceration of the vulva in a woman immunosuppressed by the human immunodeficiency virus (HIV). This was the first presentation of symptomatic disease. The diagnosis of HSV infection was made initially on histological examination of a punch biopsy from the ulcer and subsequently confirmed by viral isolation. The response to antiviral therapy with acyclovir was rapid. Other causes of genital ulceration are discussed and we highlight the diagnostic benefit of histological examination of a punch biopsy.
Diagnosis and treatment of urethritis in men
Authors: Thin R.N.
Published: July 2006

Urethritis in men may be divided into gonococcal or non‐gonococcal. These cannot be distinguished by symptoms and signs. Gram stain and culture remain the best methods for diagnosing uncomplicated lower genital tract gonorrhoea. Uncomplicated gonorrhoea responds to a single dose of a suitable antimicrobial, the choice of dose and drug depending on antimicrobial sensitivity. In non‐gonococcal urethritis, Chlamydia trachomatis may be identified in up to 58% of cases by cell culture or antigen identification methods, such as immunofluorescence or enzyme assay, with cell culture being the gold standard. Chlamydia responds to a minimum 6‐day course of a tetracycline or erythromycin, though longer courses are frequently prescribed. Resolution of symptoms, signs and evidence of urethritis may be a problem. Management of urethritis includes sexual partner notification, examination, investigation and treatment. Rapid accurate diagnosis and effective treatment are vital to prevent complications, to control spread, and to minimize the role of gonococci and chlamydia in the transmission of human immunodeficiency virus (HIV) infection.
Orthopaedic metallic implants in extremity fractures and contact allergy
Authors: Hindsén Monica , Carlsson Åke S. , Möller Halvor
Published: July 2006

Because of reports of sensitization and/or elicitation of contact allergy to orthopaedic metallic implants we performed a prospective study in 60 patients operated for extremity fractures. The implants, consisting of plates, screws, wires, pins and staples, were all made of stainless steel. The patients were tested epicutaneously and intracutaneously with nickel, cobalt and chromium within 2 days of surgery and one year later. It was possible to retest and evaluate 48 patients (80%). Of these 48 patients three were tested positive to nickel at the primary testing; they were also positive at the secondary testing. The remaining 45 patients were all negative to the three metals at both test occasions. There were no dermatologic or orthopaedic complications due to the materials used. The present prospective study did not reveal any cases of contact allergy or dermatitis as a consequence of metallic bioimplants in the treatment of extremity fractures.
Acne fulminans (acute febrile ulcerative conglobate acne) treated with isotretinoin: a case report
Authors: Maher Thomas , Rogers Sarah
Published: July 2006

A 16‐year‐old boy was treated for acne fulminans (AF) with isotretinoin when the acute inflammatory stage had been suppressed with oral corticosteroids. From our experience of this case and from our review of the literature, we recommend that isotretinoin should be withheld during the acute, inflammatory phase of AF in order to prevent exacerbation of the condition.