TRANSPORTATION COSTS IN REGIONAI,MODELS OF FOREIGN TRADE: AN APPLICATION TO CANADA-U.S. TRADE*

ABSTRACT. This paper outlines some arguments about the role of transportation costs in determining the welfare consequences of trade restrictions. The analysis uses a computable general equilibrium (CGE) model and presents the relevant features for trade analysis. The model has two alternative spatial formulations. In the first, all production and trade occur at one point, while in the second the regions are separated by distance. The calculated effects of a unilateral tariff increase are compared using the CGE model with the “point” and “distance” formulation. While the presence of transportation costs is crucial to some sectoral trade and production results, most welfare results are relatively insensitive to the spatial structure of the model.     

OLIGOPOLISTIC COMPETITION AND ECONOMIC GEOGRAPHY*

ABSTRACT This paper studies a general equilibrium model of economic geography in which firms engage in oligopolistic competition. This framework is conducive to analytic results. With increasing returns, oligopolistic competition leads to interindustry trade between regions rather than intraindustry trade. The choice of appropriate technology is a channel of concentration of industries.     

COMPETITIVE LOCATION UNDER UNCERTAINTY OF COSTS

ABSTRACT. In this paper, we study the centroid problem from competitive location theory for a linear market with uniform demand, assuming that the leader has imperfect information about the follower's fixed and marginal costs. It is shown that the general version of this problem can be formulated as a nonlinear programming problem and the exact solution can be obtained analytically in a special case. A simple strategy is also given for the general problem, and it is proven that this strategy has a guaranteed error bound. It is demonstrated that uncertainty of costs might lead to market failure in the centroid problem, but this disappears if the game is repeated and the firms learn from observing each other's moves. It is also shown that it is possible for the leader to obtain optimal expected profit at a low perceived risk, with only sufficient, and not necessarily perfect, information. These two observations lead to our primary conclusion from the study that although cost uncertainty is a realistic feature of most competitive location models, there are very effective ways of dealing with it.     

SPATIAL ECONOMIC INTERDEPENDENCE IN AN URBAN HIERARCHY SYSTEM

ABSTRACT. This paper develops a model to examine the economic interaction between central places and their hinterlands. The model allows interindustry linkages and upward trade flows in an urban hierarchy system. Trade balance equilibrium between hierarchical levels is established by direct mutual interlevel trade, rather than by indirect trade via the rural sector. The economic base multipliers generally increase with city size but occasionally they could be smaller than those of lower places. A continuous urban hierarchy is formed due to their relative location within the system, not to unspecified randomness.     

A NEW APPROACH TO MODELING THE IMPACT OF DISRUPTIVE EVENTS

This paper develops a new methodology to predict the interregional and interindustry impacts of disruptive events. We model the reactions of economic agents by minimizing the information gain between the pre‐ and postevent pattern of economic transactions. The resulting nonlinear program reproduces, as it should, the pre‐event market equilibrium. The methodology is tested further by means of a comparison of this base scenario with two regional production shock scenarios and two interregional trade shock scenarios. The outcomes show a plausible combination of partially compensating demand, supply, and spatial substitution effects, which justifies the further development, testing, and application of this new approach.     

Voices of Rotuma: Enduring Refrain

ABSTRACT

Polynesian Rotuma was blessed by its large coconuts and became an early focus for foreigners seeking trade in coconut oil and copra. Once the island became part of British Fiji in 1881, Rotumans voiced their concerns about increased shipping costs when going via Fiji as the port of entry. From the early 20th century they had visions of owning their own ship and thus greater control over prices for exported copra and imported goods. This article seeks to examine their constant efforts to make traders deal more fairly while seeking to manage their own shipping. Though they had some success, particularly when they formed a cooperative after World War Two, their goal largely proved unattainable but the vision and the voices have endured.     

A Flexible Mathematical Programming Model to Estimate Interregional Input–Output Accounts*

Abstract. This study implements and tests a mathematical programming model to estimate interregional, interindustry transaction flows in a national system of economic regions based on an interregional accounting framework and initial information of interregional shipments. A national input–output (IO) table, regional data on gross output, value‐added, exports, imports, and final demand at sector level are used as inputs to generate an interregional IO account that reconciles regional economic statistics and interregional transaction data. The model is tested using data from a multiregional global IO database and shows remarkable capacity to discover true interregional trade patterns from highly distorted initial estimates.     

从出土碑刻看清中晚期韩江流域的行商风险

韩江自古以来就是闽西、粤东、赣南的商贸大动脉,韩江航运带动了上下游之间的商贸交流.明清时期,随着商品经济的发展,航运贸易为客商带来了丰厚的利润,但是在行商途中也面临诸多的风险,如官吏勒索、艇户讹诈、牙商侵渔等.为了谋利保命,客商们赴官申控、建立会馆公所、设立船局来规避风险,取得了一定的成效.     

HOMEOWNERSHIP IN AN UNCERTAIN WORLD WITH SUBSTANTIAL TRANSACTION COSTS*

ABSTRACT This paper presents a dynamic model of residential real estate tenure decisions that takes into account the substantial transaction costs and the uncertain time paths of rents and prices. By temporarily postponing decisions, buyers and sellers obtain additional information and may avoid transactions that are costly to reverse. One implication is that the combination of high transaction costs and substantial uncertainty can create a large wedge between a household's reservation prices for buying and selling a home, which can explain why households do not switch back and forth between owning and renting as home prices fluctuate.     

DISPERSION FORMS: AN INTERACTION OF MARKET ACCESS,COMPETITION, AND URBAN COSTS*

ABSTRACT This paper analyzes a two‐region model including multiple industries with different transport costs. Two results are derived. First, dispersion occurs for small transport costs, but the specific dispersion patterns depend on the level of urban costs. This results from an interaction of the market‐access effect on consumers, the market‐access effect on firms, the competition effect, and the urban‐cost effect. Second, decreasing transport cost tends to let industries with lower transport costs disperse, although the shares of industries locating in the larger region are not in order of their transport costs. We further provide some empirical data concerning the second result.     

Current Literature Bibliography

The author describes a static city model consisting of six matrices: the city's industrial output, its distribution among city industries, population and out-shipments, and the inflow of goods to the city, with a breakdown by industrial consumers and the population. The model, as applied to three urban places of the Dnieper economic region, in used to determine a city's interindustry and interregional relationships and its rank in the hierarchy of urban places.     

CONSTRUCTION COSTS AND THE SUPPLY OF HOUSING STRUCTURE*

ABSTRACT Construction costs account for the bulk of the price of new houses in most markets, but their study has been relatively neglected. We document that there are economically large differences in construction costs across U.S. housing markets. We also estimate a very elastic supply for physical structure; hence, differences in construction activity across markets do not explain the variation in costs. Supply shifters that collectively do account for differences in building costs include the extent of unionization within the construction sector, local wages, local topography in terms of the presence of high hills and mountains, and the local regulatory environment.     

THE BEHAVIORAL COSTS OF ECONOMIC INSTABILITY*

This paper reviews the literature reporting a connection between economic change and behavioral disorder. The literature is separated into individual and aggregate based research and the methodological issues raised by each approach are described. The implications of the research findings for illness prevention, remedial services and economic policy making are discussed. The authors argue that the social costs of mobile capital should be accounted and internalized because social justice as well as Economic and Psychological theory assume that an individual should bear the costs of his or her behavior.     

SPATIAL COMPETITION WITH LOCATION-DEPENDENT COSTS*

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.     

AGGLOMERATION AND REGIONAL COSTS OF LIVING*

ABSTRACT Standard models of the new economic geography predict that costs of living are lower in the core than in the periphery. But in reality they tend to be higher in agglomeration areas, mainly because of regional differences in housing costs. In this paper, we add a home goods sector to the seminal NEG model of Krugman (1991) . We show that a core–periphery structure can endogenously emerge in which the core is the more expensive area. This result has an important normative implication. Since higher costs of living imply falling real wages if there is no nominal wage premium, it is not desirable for everybody to live in the core region.     

清代泉州晋江沿海商人的乡族特征

Along with the promotion of Taiwan’s economic status in the mid-Qing Dynasty and the expansion of trade with the mainland, the merchants of Jinjiang County of Quanzhou Prefecture in the Qing Dynasty developed a business model focused on the growing cross-strait trade and coastal shipping in Southeast China. The success of these coastal traders in business was closely related to their full use of family and lineage. However, the links of family and lineage, at the same time, were problematical for these businessmen when exploiting economic opportunities. These complex family and lineage ties could either promote or obstruct the development of commercial capital depending on specific situations. Thus, the traditional argument that the family and lineage system hindered socio-economic development should be re-examined.     

THE HAPPINESS‐REDUCING COSTS OF NOISE POLLUTION*

ABSTRACT This analysis examines the costs of everyday residential noise pollution using a series of “happiness regressions.” We control for both the possibility that an unobservable characteristic may cause omitted variable bias, as well as for the possibility of endogeneity bias if “effort” is not adequately taken into account. We find perceived noise pollution to exert a negative and highly significant effect on happiness. We then calculate the required income transfer to compensate for the noise and find the costs of noise pollution to be on the order of €172 per month per household.     

High‐speed railway to success? The effects of high‐speed rail connection on regional economic development in China

We find that high‐speed railway connection in China has led to a reduction in GDP per capita for connected peripheral prefectures. We use the least‐cost path‐spanning tree network to address the nonrandom route placement issue. We find that the reduction of GDP per capita is driven by significant contractions in capital input, industrial output, and skilled labor outflow. We present evidence to support a trade‐based channel in light of falling transportation costs between peripheral and metropolitan regions. Our finding highlights the importance of the cost of human transport.     

‘Success to the Dobson’: commemorative artefacts depicting 18th-century British slave ships

Abstract

Between c. 1720 and 1807 Britain dominated the transatlantic slave trade, yet throughout the same period material representations of the trade remained markedly few. A demand for Liverpool ceramics depicting slave ships did, however, develop in the later 18th century. These artefacts provide important insights into both the aspirations of those directly involved in slave shipping, and contemporary understandings of the slave trade itself. They also point to the emergence of an actively pro-slavery material culture: a direct response, it may be argued, to the propagandist strategies adopted in the 1780s by the abolition movement.     

THE EFFECT OF LAND USE AND ENVIRONMENTAL REGULATIONS ON HOUSING COSTS

This paper examines the effects of various land use and environmental regulations on land and housing markets. Seven widely used techniques for controlling residential development appear to generate four “direct” and two “indirect” inflationary impacts. Land use and environmental controls directly affect the supply and cost of residential land, shift the cost of public services forward to developers, and increase delay and compliance costs associated with project evaluation. Development controls may also inadvertently facilitate monopolistic behavior in the development industry and predispose developers to orient their projects to high income groups onto which they can more easily pass along higher costs. The paper concludes by offering several policies for reducing the inflationary effects of environmental regulations.