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.     

A STRUCTURAL EMPIRICAL ANALYSIS OF METROPOLITAN LABOR DEMAND*

ABSTRACT. This paper uses a large data base to study metropolitan labor demand functions. The data are disaggregated by two-digit SICs in manufacturing for SMS As, and are corrected for changing SMSA boundaries. Labor demand elasticities are estimated for factor and commodity prices, transportation costs, state and local taxes and expenditures, and production-function shifters. Estimates from different years allow one to test Le Chatelier's principle in the context of interregional change.     

AMENITIES VERSUS LABOR MARKET OPPORTUNITIES: CHOOSING THE OPTIMAL DISTANCE TO MOVE*

ABSTRACT. A recent debate in the regional economics literature has focused attention on the motivation behind an individual's decision to migrate. Human-capital migration models emphasize labor market disequilibria whereas alternative (hedonic) migration models stress households’altered demand for nontraded goods. In this paper, we test the relative importance of these two possible motivations for moving between metropolitan areas. We use an intercity hedonic model to decompose wages into equilibrium and disequilibrium components. We then compare the separate influences of amenities and the disequilibrium component of wages on the distance moved between two metropolitan areas. Our findings indicate that both economic factors and amenity differentials are significant factors in explaining regional migration.     

PHOSPHATES IN ARCHAEOLOGICAL FINDS: IMPLICATIONS FOR ENVIRONMENTAL CONDITIONS OF BURIAL*

The occurrence of coarse‐grained vivianite and mitridatite aggregates in a potsherd, a grand ring and a timber imprint from the Second Iron Age site of Adria (Rovigo, northeastern Italy) suggest contrasting environmental conditions of burial. In particular, bone fragments were replaced by vivianite at relatively low pH and Eh, due to the presence of deteriorating organic matter, together with slag and iron flakes. Subsequent interactions with Ca‐rich groundwater characterized by higher pH and Eh determined the growth of mitridatite after vivianite. Although phosphates crystallized after burial, the examined samples were not involved in pervasive chemical contamination.     

GENERAL EQUILIBRIUM OF SPATIAL PRODUCT AND LABOR MARKETS*

ABSTRACT A simple general equilibrium model relates spatial product markets and spatial labor markets. The firm is treated as being a spatial monopolist or as a Löschian competitor in the output market and as a spatial monopsonist in the labor market. Derived free spatial demand and free regional labor supply are defined, and their properties examined. The model provides the framework for analyzing the impact of a technological improvement in labor productivity on the structure of the spatial markets. The impact of entry on spatial labor supply is an important determinant of whether or not entry lowers wages and raises output prices. Unlike the spaceless competitive paradigm, zero-profit long-run equilibrium can occur in a space economy under conditions of increasing returns to scale.     

A CONTEXTUAL THEORY OF RETAIL CENTRAL PLACES ON A LINEAR MARKET*

ABSTRACT. This paper presents an initial version of a new theory of central places for retailing activities. Confined to a linear market and using the Contextual Theory of Demand to model consumer behavior, the model extends the economic theory of central places (Eaton and Lipsey, 1982). In its present form, the model specifies four parameters that control the spatial relationship between the locations of households and the equilibrium locations of central places: expenditure shares in consumption, transportation cost functions, storage costs by commodity, and capital costs of retailers. The locational equilibria of the model are optima when all costs are considered.     

THE ECONOMIC LAW OF MARKET AREAS: A FURTHER DISCUSSION*

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.     

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.     

A MANAGERIAL MODEL OF THE EFFECT OF PRODUCT MARKET STRUCTURE ON FIRM LOCATION*

ABSTRACT. This paper develops a model of firm location choice based on managerial theory of discretionary behavior. Specifically, it is assumed that the management of the firm maximizes a utility function which incorporates profits and location-specific amenities. As the firm moves from one prospective location to another, it faces a profit-amenity constraint imposed by market conditions. The optimal location decision is derived by maximizing the utility function subject to this market-imposed constraint. After examining the properties of the optimal solution, the impact of various changes in product market structure (including changes from a contestible markets perspective) on the location decision is investigated. A major finding is that the impact of a change in market structure depends upon the nature of the structure change and upon the substitution and income effects induced by the structural change.