K. H. RAU AND THE ECONOMIC LAW OF MARKET AREAS*

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.     

ON THE SHAPE OF MARKET AREAS IN LÖSCHIAN SPATIAL MODELS*

ABSTRACT. The paper analyzes the lattice shape of equilibrium configurations of firms in spatial models. Lösch's assertion that free entry will result in hexagonal market areas is proved for a variety of assumptions about the nature of the market equilibrium, and about the preferences of customers. All the models considered, however, incorporate rational entry behavior and identify the stable lattice as an entry deterring equilibrium. A simple proof is presented of the optimality of hexagonal market areas, at least among regular space-filling configurations.     

MEASURING THE LOCALIZATION OF ECONOMIC ACTIVITY: A PARAMETRIC APPROACH*

ABSTRACT The index proposed by Ellison and Glaeser (1997) is now well established as the preferred method for measuring the localization of economic activity. In this paper we develop an alternative localization measure that is consistent with the theoretical framework originally proposed by Ellison and Glaeser. Our measure follows directly from the Random Utility (Profit) Maximization (RUM) location decision model. Because the distributional assumptions in our model are fully compatible with RUM, we are able to offer a more efficient measure of industry clustering.     

A NEOCLASSICAL ANATOMY OF THE ECONOMIC BASE MULTIPLIER*

ABSTRACT Keynesian export base theory ignores the supply side of the economy, while trade models may overemphasize resource constraints. A general equilibrium model which stakes out a position between those extremes is developed and used to define rigorously the components of an economic base (EB) multiplier. Capital moves freely in and out of the regional economy, but the factor land is fixed. Interregional labor movements are caused by wage differentials. Factor and relative commodity prices are determined endogenously. Demand and supply sides of a small regional economy are included. The relationship between average and marginal EB multipliers, and between key parameters (regional size, several elasticities, etc.) and the marginal multiplier are discussed. The Keynesian constant EB multiplier can be derived from a special case of the model.     

A FURTHER EXPLORATION INTO THE ROBUSTNESS OF SPATIAL AUTOCORRELATION SPECIFICATIONS*

ABSTRACT In a recent study, the robustness of linear models with various spatial autocorrelation specifications was assessed through Monte Carlo experiments, and the geostatistical models were concluded to dominate the weight matrix models in the prediction. The present study tests the soundness of this conclusion with a different framework for prediction and presents some experimental results that can call into doubt the dominance of the geostatistical models over the weight matrix models.     

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.     

THE EMPIRICS OF NEW ECONOMIC GEOGRAPHY*

ABSTRACT Although a rich and extensive body of theoretical research on new economic geography has emerged, empirical research remains comparatively less well developed. This paper reviews the existing empirical literature on the predictions of new economic geography models for the distribution of income and production across space. The discussion highlights connections with other research in regional and urban economics, identification issues, potential alternative explanations, and possible areas for further research.     

THE LONG-RUN ECONOMIC IMPACTS OF FEDERAL,STATE, AND LOCAL FISCAL POLICIES IN METROPOLITAN AREAS*

ABSTRACT. This paper uses new estimates of metropolitan factor demand and output supply functions to study how federal, state, and local fiscal policies affect metropolitan economies. We illustrate our work with findings for ten metropolitan areas in five states for changes in state corporate income taxes, local property taxes, the federal corporate income tax, an investment tax credit, interest rates, public capital stocks, output prices, and tax and regulatory policies affecting gross wages. It is clear from these simulations that a policy that is nominally the same everywhere will have repercussions that vary widely across regions and cities.     

A NOTE ON MULTIPURPOSE AND MULTISTOP SHOPPING,SALES, AND MARKET AREAS OF FIRMS*

ABSTRACT. The paper characterizes the aggregate demand addressed to firms in a situation such that consumers are allowed to purchase during the same journey several commodities from several firms located in a one-dimensional space. It is a duopoly in which both firms sell the two commodities. The individual demand is assumed to be price-inelastic.     

ECONOMIC GEOGRAPHY WITHIN AND BETWEEN EUROPEAN NATIONS: THE ROLE OF MARKET POTENTIAL AND DENSITY ACROSS SPACE AND TIME*

ABSTRACT In explaining the uneven spatial distribution of economic activity, urban economics, and new economic geography (NEG) dominate recent research in economics. A main difference between these two approaches is that NEG stresses the role of spatial linkages whereas urban economics does not do so. We estimate simple versions of these two views on economic geography and also establish if the relevance of spatial linkages varies across aggregation levels or time. For our sample of 14 European countries and 213 corresponding regions, we find that spatial linkages are more important at the country level and that its relevance varies across time.     

淮海经济区区域市场空间分析

省际边缘区研究是近年来经济地理学关注的热点领域。以县域为研究单元,以淮海经济区为案例,运用SPSS和ArcGIS软件,对省际边缘型经济区区域市场发育的空间分异特征及市场区划分进行了深入探讨,结果表明:生产性因子是造成淮海经济区区域市场发育差异的主导因素;淮海经济区区域市场整体发育比较滞后且市场发育水平差异较大;苏北、鲁南的区域市场发育水平明显高于豫东、皖北,皖北区域市场发育尤为滞后;从区域尺度看,区域市场发育程度呈现由京沪沿线地区向东西两侧逐渐降低的"凸"字型格局;从城乡尺度看,呈现由城市向外围农村地区逐渐降低的圈层分异格局。进而采用统计分析方法将淮海经济区区域市场划分为北部发达型、南部较发达型、东部发展型和西部滞后型。