THE SHORT-RUN AND LONG-RUN FACTOR-MARKET CONSEQUENCES OF IMMIGRATION TO THE UNITED STATES*

ABSTRACT. This paper applies the production-theory approach to assess the impact on domestic wages and employment of immigration to the United States. Inputs are disaggregated between recent immigrants, non-recent immigrants, native workers, and capital. Census cross-sectional data for 1980 and for 123 metropolitan areas are used. Empirical estimates are reported for alternative functional forms with special attention devoted to required curvature conditions which have frequently been violated in previous work. Elasticity estimates are reported for alternative settings, including for the short run where we view domestic factor prices as given and the long run where we treat them as flexible.     

TRANSPORTATION RATES AND LOCATION OF THE FIRM: A COMPARATIVE STATIC ANALYSIS*

ABSTRACT This paper examines the role of the structure of transportation rates in the Weber-Moses triangle model. It shows that, in Zeigler's analysis, the appearance of the price elasticities of demand for inputs actually vanish by a simple application of the envelope theorem. Applying comparative statics analysis, we show when transportation rates are a function of quantity and distance, the assumptions that the production function is homogeneous of degree one and the transportation rates elasticities with respect to quantity and distance are constant are not sufficient to insure that the optimum location is independent of the level of output. This result is significantly different from that obtained by either Miller and Jensen or Zeigler.     

THE SPATIAL MONOPSONY: A THEORETICAL ANALYSIS*

ABSTRACT. In this paper some of the most important properties of the behavior of a spatial monopsonist are derived. Many results are mirror images of corresponding results for the spatial monopolist. A few results are, however, genuinely new. A lot of effort is spent in comparing the properties of the profit function under three different pricing policies, f.o.b. (mill)-pricing, uniform delivered pricing, and spatial price discrimination. It is shown, for example, how the profitability and welfare consequences of the different policies are related to the shapes of the supply and demand functions. It is argued that the theory may have important applications in economic analyses of renewable natural resources such as forests, where total transportation costs are nonnegligible.     

THE OPTIMAL CONVERGENCE OF REGIONAL INCOMES*

For many policy considerations it is assumed that the convergence of regional mean income will improve national equity by reducing overall inequality. The literature on decomposability of social welfare functions implies that this assumption is unwarranted. This paper develops a notion of optimal regional convergence. In general, the point of optimal convergence depends on the shapes of the regional income distributions, the inequality index used, and the rule for distributing interregional transfers. These concepts are illustrated with data on the regional income distributions of the Southern and Northern United States.     

U.S. URBAN POLICY: THE POSTWAR STATE AND CAPITALIST REGULATION

This paper provides an historically grounded theory of U.S. urban policy which is informed by regulationist theory and recent contributions to the theory of the State. It is shown how the content and form of urban policy in the New Deal, was shaped by the rise of mass-production Fordism and informed by the particular struggles that emerged in the United States during the formative period of the 1930s and 1940s. These struggles produced a particular State policy response, setting in place a limited and constrained mode of State intervention in the economy. In the realm of urban policy, this narrow form of State intervention set limits on further rounds of State policy, leaving the U.S. State unable to respond in an effective way to the mounting economic crises of the 1970s and the 1980s, contributing to the so-called "failure" of urban policy.