Showing papers in "The Journal of Regional Analysis and Policy in 1978"

A Simultaneous Econometric Model of the Intra-urban Location of Employment and Residence

Abstract: In this paper an attempt has been made to inject into urban economics some basic tenets of econometrics which already permeate the other branches of economics. The cornerstone of any econometric model, a basis in economic theory, was found to be lacking in many models of intraurban location. Furthermore, a discussion of various types of econometric (i.e., simple, recursive, and simultaneous) models and their appropriate estimation techniques revealed a contradiction between certain urban economic models as to their specification of the causal relationship between the intraurban location of residents and employment. In such a situation estimation results of the contradictory models may be spurious. In order to resolve this contradiction a simultaneous econometric model with a theoretical basis is presented. An attempt is then made to compare estimation of simultaneous model (using TSLS) with OLS estimation of the contradictory models. The main conclusion is that failing to allow for the simultaneity of residence and employment will lead to overestimating the significance of employment as a determinant of residential location. It is further suggested that the study of intraurban location has, perhaps, overlooked or dismissed the importance of residential location as a determinant of employment location.

The Regional Allocation of Investment: A Neoclassical Model

Abstract: The purpose of this paper is to construct a model of the optimal allocation of investment between two regions which possess neoclassical production functions. A neoclassical model in which substitution between capital and labor in the production process is permitted would appear to be more realistic than a model in which capital and labor are assumed to be used in fixed proportions. If the normal assumption of positive, but diminishing marginal productivity of capital is made in a neoclassical model, it is expected that such a model would lead to the regional dispersion of investment.

Space-Time Interactions and Interregional Growth Policies

Abstract: A current limitation of the growth pole research is its reliance on generally descriptive static models. Exploratory theoretical research for growth pole impacts suggest that dynamic interaction between regions occur in both a temporal and spatial dimension. It is the contention of the authors that implementation of regional growth strategies requires a stronger linkage with this urban diffusion and interaction theoretical literature. This necessitates that a comprehensive understanding of functional interactions and their impacts on regional dynamics be established. The objective of the paper is to examine the theoretical aspects of these interactions and to define their economic impacts on the achievement of regional, social and economic growth objectives. In addition, shifts in the dominant interactions and their subsequent impacts over the life cycle of the recipient regions are isolated in the analysis.

Aspects of Research and Development in American Industry: An Exploratory Study

Abstract: A considerable amount of effort has gone into empirical research to discover the determinants and effects of industrial research. Unlike other aspects of technological change, such as the diffusion of innovation, the spatial components of research and development (R&D) have not been assessed. This paper primarily extends economic study on the subject to examine the effect of locational variables on the research intensity of individual firms. The paper is an exploratory one in that only certain relationships are examined. Emphasis is placed on the effects of firm and locational attributes on R&D, rather than on the broader, long-term effects of R&D on a firm's product mix or on city growth.

The Use of Alternative Measures of Accessibility in Estimating Spatial Relationships

Abstract: Examination of the literature discussing the effects of accessibility on the spatial distribution of economic phenomenon (in particular property values and rents, and population densities) reveals that there is no clear consensus among investigators as to what observed variable adequately or appropriately measures the concept of accessibility or spatial proximity. This paper summarizes the results from some simple comparisons when alternative measures of accessibility are used to statistically describe characteristics of house value, rent, and density gradients. It is argued that high correlations among alternative operational measures of accessibility are not sufficient to justify their interchange in commonly applied estimation

Water as a Constraint to Economic Development in Western North Dakota

Abstract: Water, like many other natural resources, is becoming a scarce and very valuable commodity as man places ever increasing demands upon his physical environment. Although water related problems may not yet be as severe in North Dakota as in more industrially advanced or more arid regions, there may be potential for such problems to develop as the state strives for economic expansion via energy development, increased industrialization, or more intensive irrigation of agricultural lands. Future economic growth may conceivably be limited as a result of implicit and explicit constraints imposed by the availability of adequate water supplies. The present investigation seeks answers to several broad quantitative questions. Fundamentally, will water become a constraint to western North Dakota economic growth? If so, at what level of activity will this constraint become apparent? Finally, how will the composition of economic activity affect the behavior of the constraint? Will vast increases in thermoelectric generation, for example, hasten the arrival of the constraint? Policy formulation in areas of water resource development, allocation, and use must logically encompass such broad considerations at a minimum.

Urban Home Improvement Loan Flows and the Implications for Redlining

Abstract: This paper examines two related topics. Initially, the total flow of home improvement loans is examined as a function of a set of socio-economic variables. Second, and of relatively greater concern, the paper tests for the existence of "redlining" in the home improvement loan market. The term "redlining" in this paper refers to the alleged practice of en masse denial of mortgage credit to certain parts of cities where the percent of the population that is black is large, where the racial composition is changing and/or parts of cities composed of predominantly older structures. This working definition encompasses risk consideration as a basis for redlining as well as other factors. The methodological tool used is multiple regression analysis. The units of observation are individual census tracts for the Toledo, Ohio SMSA as delineated in the 1970 Census of Population and Housing.

Global and Regional Implications of the Social Costs of Environmental Pollution

Abstract: This paper revises the classical theory of social cost to include the productive value of the environment. The first section of the paper reviews the classical theory of social costs. The second section introduces the assimilative capacity of the environment as a measurable externality. In this section the assimilative capacity of the environment is measured as either consumer or producer surplus conferred on the individual or society conducting the polluting economic activity. The paper concludes by suggesting that society should increase its productive activity only up to the point where the revised marginal social costs equal the net marginal benefits of the activity.