ESTIMATING INTERREGIONAL UTILITY DIFFERENTIALS*

ABSTRACT The major objective of this paper is to estimate regional utility levels based on interregional migration data. We first revealed three stylized facts concerning migration behavior by examining long‐term Japanese data on interregional migration. We then uncovered inconsistency between net migration and utility differential in the presence of distance‐related migration costs. Based on the stylized facts and the inconsistency problem, we formulated an operational model and estimated interregional utility differentials. We showed that the interregional utility differentials converged until the late 1970s. We also showed that the utility estimates are highly correlated with the per capita real income. We also applied the model to interregional migration data in the United States and Canada and confirmed the model's validity.     

AN EMPIRICAL ANALYSIS OF INTERREGIONAL PRICE LINKAGES*

ABSTRACT Vector autoregression models are used to analyze the relationships between Texas and Illinois corn prices, and the New Orleans export price. Decomposition of error variances suggests an increasing exogeneity in the recent years between the export market and the two U.S. markets. Impulse response functions indicate that the export price influences both the Illinois and Texas prices.     

UPPER BOUNDS ON THE SIZES OF INTERREGIONAL FEEDBACKS IN MULTIREGIONAL INPUT-OUTPUT MODELS*

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.     

ECONOMETRIC MODELING OF INTERREGIONAL LABOR MARKET LINKAGES*

ABSTRACT. This paper presents a statistical procedure for empirically establishing linkages between regional economies. Using Granger's definition of causality and the final prediction error technique for lag-length specification suggested by Hsiao, a linked, multiregional employment model is developed. The forecast performance of the linked model is compared to models which do not include interregional linkages. It is shown that forecast error is reduced by taking into account employment interrelationships between regions.     

INTERREGIONAL FEEDBACKS IN INPUT-OUTPUT MODELS: THE LEAST UPPER BOUND*

ABSTRACT. The least upper bound to the overall percentage error resulting from the omission of interregional feedbacks in input-output analysis is defined. This limiting value is the most informative of all upper bounds. A procedure for its computation is outlined and a number of experiments, using U.S. data, are discussed.     

OPTICAL DATING OF GRANITIC STONE SURFACES*

A novel luminescence methodology for dating surfaces of granitoid rocks is presented, with encouraging results for archaeological stone structures. It is based on the zeroing of the latent signal of optically stimulated luminescence (OSL) in feldspar and quartz grains of the stone surface during exposure to daylight. When after bleaching the surface is shielded from light, the OSL signal builds up again, such that its intensity provides an age for the event of the last exposure to light. This event could be the construction or the destruction of stone structures or, for example, sedimentary deposition of granitic boulders, such as in fan deposits. The experimental approach utilizes a high spatial resolution detection technique (HR‐OSL) for OSL of minerals that are left in their original petrological context; that is, without any mineral separation. With this approach, steep gradients in microdosimetry at the surface and at grain boundaries become important and are discussed in detail. The new dating technique is successfully applied to a stone wall of the medieval castle of Lindenfels in southwestern Germany and the pre‐Columbian Nasca lines (geoglyphs) around Palpa in southern Peru.     

THE DETERMINANTS OF THE RECENT INTERREGIONAL MIGRATION FLOWS IN ITALY: A PANEL DATA ANALYSIS*

ABSTRACT This study investigates the determinants of interregional migration flows in Italy in the light of the upsurge occurred in 1996, after two decades of decreasing internal migration rates. The fixed‐effect vector decomposition estimator (FEVD) is applied to a gravity model using bilateral migration flows for the period 1996–2005. It is shown that the FEVD improves the estimates with respect to the traditional panel data estimators. The GDP per capita and the unemployment rate appear to be the key determinants whose changes push migrants out from their regions and direct them to “better off” destinations. Migrants leaving the regions in the Center‐North respond differently to the push and pull forces compared to southern migrants. The dynamic model provides evidence for the presence of social networks, which in this analysis take place for each pair of regions.     

INTERREGIONAL KNOWLEDGE SPILLOVERS AND OCCUPATIONAL CHOICE IN A MODEL OF FREE TRADE AND ENDOGENOUS GROWTH*

ABSTRACT A two region model of horizontal innovation with free trade and occupational choice is used to examine the spatial patterns of innovation and manufacturing industry in interior and core‐periphery long‐run equilibria. The inclusion of skill heterogeneity among workers creates a tension between stabilizing productivity effects that coincide with reallocations of workers across industries, and destabilizing productivity effects that arise with localized stocks of knowledge capital. We find that while core‐periphery equilibria are always saddlepath stable, interior equilibria are saddlepath stable when knowledge spillovers exceed a threshold level but are unstable otherwise. In addition, incorporating skill heterogeneity into the model allows for interior equilibria with asymmetric shares for innovation and industry.