ZONE PRICING*

ABSTRACT. Our purpose is to study a spatial price policy often encountered in the real world, known as zone pricing. This price policy consists in determining simultaneously several delivered prices together with the geographical zones in which they apply. It is shown that zone pricing approximates perfect spatial price discrimination and that the firm's profit increases with the number of zones. Furthermore, the number of markets supplied by the firm rises with the number of zones. Finally, zone pricing is compared to other standard spatial price policies and possible extensions are discussed.     

Facility Location Under Zone Pricing

Zone pricing consists in determining simultaneously several delivered prices together with the zones where these prices apply. A model and algorithm are proposed to determine optimal facility locations, prices, tariff-zones, and market areas in order to maximize the firm's profit under zone pricing. The resulting nonlinear mixed-integer program is tackled by projecting the objective function on the price space, solving repeatedly uncapacitated facility location problems for fixed values of the prices. The implicit profit function so defined is optimized by branch-and-bound. Computational results are reported.     

A Natural Transmission Belt for the Year-Round Supply of Fresh Farm Products

Fresh farm products are now available nationally on urban markets of the Soviet Union only one or two months a year [September-October], It in suggested that the diversity of climatic zones can be used, in combination with adequate means of transportation, to insure a virtually year-round supply of fresh fruit and vegetables in northern cities at reasonable prices. The required staggering of harvest periods in a kind of natural conveyor belt in illustrated by the cultivation of table grapes and three major vegetables [tomatoes, cucumbers and cabbage].     

ACCOUNTING FOR LOCAL SPATIAL HETEROGENEITIES IN HOUSING MARKET STUDIES

We adopt a novel method to deal with omitted spatial heterogeneities in hedonic house price analysis. A Gaussian variant of the conditional autoregressive (CAR) model is used to study the impact of spatial effects. In a general linear modeling framework, we include zone‐specific random effects that are allowed to interact spatially with neighboring zones. The results demonstrate that this estimator accounts for missing spatial information, producing more reliable results on estimated spatially related coefficients. The CAR model is benchmarked against a fixed effects model. Socioeconomic neighborhood characteristics are found to have only modest impact on spatial variation in housing prices.     

Principles of a Territorial Differentiation of Retail Prices

A system of territorial differentials in retail prices for consumer goods in the Soviet Union is considered essential as long as regional physical and other geographic differences produce cost differentials in production and transportation. It is suggested that the present system of three price zones be revised for individual food products to take fuller account of distance between producing and consuming areas.     

IS THE GHOSH MODEL INTERESTING?*

ABSTRACT The overall value of the Ghosh model is appraised. Its treatment of quantities and prices is scrutinized by examining the variant with data in quantities and prices, and the variant with data in value and price indexes. The methodology involves returning to the accounting equations and shows that: (i) the Ghosh model offers solutions of limited interest, being incapable of providing prices or price indexes separately from quantities; (ii) what is taken to be the equation of Ghosh's value model is actually that of Ghosh's physical model; (iii) the Ghosh model may serve for cost‐push exercises, but the dual of the Leontief model performs the same task in a much simpler and more natural way; and (iv) Cronin's mixed models do not actually mix Leontief and Ghosh hypotheses.     

THE LAW OF ONE PRICE IN A NETWORK: ARBITRAGE AND PRICE DYNAMICS IN NATURAL GAS CITY GATE MARKETS*

ABSTRACT. In this paper we develop a model of the law of one price in a network where many markets are linked with a structure of paths. We show that arbitrage-free prices depend on the structure of the network and so do price dynamics. Our estimates indicate that local bypass and open access pipeline transportation were instrumental in opening arbitrage paths to natural gas city markets and causing their prices to converge. Spot markets in the city gates, pipeline hubs, and production fields, that are scattered over distant points in the vast pipeline network in the United States, now form a single market.     

长春市住宅价格空间分异与影响因素研究

基于持续年份住宅数据、利用空间热点分析和地理加权回归模型，对2011年以来长春市住宅价格分布的空间分异现象和住宅价格影响因素分布的空间异质性进行研究。结果显示：①近年来长春市住宅小区存在向内填充与向外扩散并进，圈层扩展和扇形放射融合的演化趋势，其中西南-东南扇面是居住空间扩展的主要方向；②2011年以来长春市住宅价格呈现出以南部为指向的扇面增长的空间特征，高价住宅街区由点状分布到片状扩散。通过半变异函数和冷热点聚类分析方法指出，长春市住宅空间的南北分异现象显著，住宅价格的低值与高值聚类以铁路为界线存在显著的空间隔离；③就POI数量而言，住宅小区周边银行保险、医疗、住宿、休闲娱乐数量对住宅价格产生较强影响，同时以上因素作用效应的空间差异性同样显著。     

THE EXCHANGEABILITY OF HEDONIC PROPERTY PRICE STUDIES*

ABSTRACT. Observations drawn from multiple markets are essential to the construction of indices of housing costs and to measures of demand for housing attributes. It is not evident when multiple markets exist or whether such markets exist for some attributes but not for others. We test for multiple markets by using Bayesian methods to assess the transferability (random exchangeability) of entire hedonic price expressions from one site and time to another, the transferability of hedonic price functions for particular attributes, and the degrees of similarity that hedonic price functions must have in order to be transferable. In our illustrations, price functions for structural housing attributes are generally transferable; prices for neighborhood attributes are not. Therefore, in our illustrations, the desired price indices and demand functions should be estimable for neighborhood attributes, but not for structural ones.     

THE WATER ASPECT OF THE GEOGRAPHY OF AGRICULTURE IN THE USSR

The long-term grain requirements of the growing Soviet population are calculated. On the basis of the relationship between water use and grain yields by natural soil zones of the USSR, the authors show that the amount of water needed per unit of output declines with a growth of productivity, especially in the non-chernozem zone of the Soviet Union. It is therefore concluded that greater water savings might be assured by expanding grain production in zones with an adequate supply of natural moisture rather than by the use of artificial irrigation of arid lands.     

THE ROLE OF INFRASTRUCTURE IN THE SUPPLY OF HOUSING*

ABSTRACT As the housing stock in a city is duplicated, developers must devote greater amounts of resources to the provision of infrastructure. If the production of infrastructure is characterized by decreasing returns to scale, this will cause the price of developable land to increase. The conditions under which an upward-sloping supply curve for housing will result are discussed. Using cross-sectional data for U.S. cities from 1973 to 1982, it is shown that land prices fail to increase with the quantity of construction and that the price elasticity of the supply of housing is infinite.     

The Water Balance of the Land

The article gives a quantitative evaluation of the elements of the hydrologic cycle (precipitation, runoff, evaporation) for the earth as a whole, for natural geographic zones of the USSR (tundra, tayga, steppe, desert) and for types of land within a given zone. The role of man in altering the water balance of individual territories through reclamation measures (irrigation, drainage, plowing up of virgin land) and through changes in agricultural techniques is also discussed.     

Duopoly prices under congested access*

Abstract. Consider two firms, at different locations, supplying a homogenous good at constant marginal production cost. Consumers incur travel costs to the firm for each unit purchased, and the travel costs increase with the amount of travel to each firm (congestion). When all traffic and all congestion are generated by travel to a duopolist, both the Nash–Bertrand equilibrium prices and the Nash–Cournot equilibrium prices exceed the sum of the marginal production cost and the marginal external travel cost. However, when the road is shared by travelers to the duopolists' facilities and travelers in competitive markets, the Nash–Bertrand duopoly price equals the competitive price and the Nash–Cournot price contains a markup.     

Discovering Price in All the Wrong Places: The Work of Commodity Definition and Price under Neoliberal Environmental Policy

Abstract: Price plays a unique role in neoliberal economic theory, quantifying value and providing markets with the information needed to produce equilibrium conditions and optimal social welfare. While the role of price is clear, the mechanisms by which prices are discovered, and by which the commodities they value are defined, are left obscure in neoliberal theory. Automatic price discovery, and self‐evident commodity identities, are assumed. Observation of newly created markets in ecosystem services suggests that this is a moment of significant tension within neoliberal practice, as potential market participants seek guidance from the state on appropriate commodity measures and pricing practices. Bureaucrats and economists, following the neoliberal preference for governance over government, turn the task back onto civil society. The invocation of abstract rules, instead of the formulation of practical guidance, by policymakers means that the neoliberal marketization of non‐market public goods is a contingent and sometimes rudderless task for those who must make markets work on the ground. This presents many opportunities for constructive engagement on the part of geographers and other critics of neoliberal strategy.     

Optimizing the Spatial Structure of the Agricultural Production Function

Important characteristics of spatial agricultural production functions are derived by introducing a non‐negative curvilinear spatial demand function for production input intensities. Given the usual neoclassical rationale assumptions of spatial demand for capital and labor inputs under competitive environment of farming in developing agricultural economies, the optimal production levels are determined by optimizing spatial demand for production inputs. Decreasing price‐to‐transport costs ratio (that is, decrease in the prices of capital goods or increase in freight rates) and increasing wage‐to‐travel costs ratio (that is, increase in labor wages or decrease in the travel rate) expand the limits of the (spatial) optimal boundary of the demand for agricultural capital goods and labor input respectively. These effects occur on account of the operation of (positive) spatial price gradient and (negative) wage‐gradient in the market region. It may be noted that elasticities of demand for production factors are spatially variant and have significant effects on the alterations in the structure of agricultural production. However, the spatial optimal solution of production has a complicated relationship with them. The price elasticity has negative and wage elasticity has positive spatial gradients in the market region. Farmers located in the periphery of the market region are not much affected by the proportionate changes occurring in the prices of agricultural capital goods but are more sensitive to the proportional changes in labor wages. Because of a decreasing trend in capital input demand and increase in labor input with distance from the market, capital‐product diminishes with a decreasing rate and labor‐product increases with an increasing rate in the spatial structure of agricultural production. As a result, capital‐labor ratio falls toward zero, which raises profit rate per unit of capital investment especially in the outer part of the market region. The equilibria of optimal production with price elasticity as well as of capital intensity with labor employment (that is, capital‐labor ratio as unity) determine spatial limits of the optimal production zone which is shifted outward subject to the provision of cheap transportation, stabilizing market prices and/or increasing wage rate at the market center. It will help in extending outwardly the optimal spatial limits of capital investment and will mobilize capital resources of farmers in the periphery for efficient and competitive capital‐dominated farming.     

Cournot Retail Chains

In this paper a model of spatial Cournot competition among retail firms is devised and used to assess the effect of a variety of structural factors on retail prices and profits. The model illustrates the spatial chain of interaction that firms must anticipate to reach equilibrium when organized in chains or as independents. It shows the sensitivity of price to the location of stores, the number of stores per location, and transportation cost.     

SPATIAL HEDONIC MODELS OF AIRPORT NOISE,PROXIMITY, AND HOUSING PRICES*

ABSTRACT Despite the refrain that housing prices are determined by “location, location, and location,” few studies of airport noise and housing prices have incorporated spatial econometric techniques. We compare various spatial econometric models and estimation methods in a hedonic price framework to examine the impact of noise on 2003 housing prices near the Atlanta airport. Spatial effects are best captured by a model including both spatial autocorrelation and autoregressive parameters estimated by a generalized moments approach. In our preferred model, houses located in an area in which noise disrupts normal activities (defined by a day–night sound level of 70–75 decibels) sell for 20.8 percent less than houses located where noise does not disrupt normal activities (defined by a day–night sound level below 65 decibels). The inclusion of spatial effects magnifies the negative price impacts of airport noise. Finally, after controlling for noise, houses farther from the airport sell for less; the price elasticity with respect to distance is −0.15, implying that airport proximity is an amenity.     

Tourism Planning in Sub-regional Destinations: Heterogeneity of the Tourist Experience on the Andalusian Coastal Municipalities

The present paper analyses tourist experience, studying the existing differences among geographical zones within a broader tourist destination with provincial character. Planning and management of tourist destinations must pay special attention to the maintenance and conservation of natural and artificial resources in tourist supply, attempting to improve their competitive position. Hence, this study compares several Andalusian coastal municipalities through different components of tourist supply. Among other obtained results, findings indicate the existence of significant differences in urban environments among the municipalities of Almeria, in beach quality among the municipalities of Cadiz and in accommodation among the municipalities of Malaga.     

Factors underlying inflation in Russia 2000–2015

Abstract

This paper examines the problem of continuing inflation in Russia in the period from 2000 to 2015. Although factors causing high inflation changed during this period, such factors as money supply, wages, gas and electricity prices, and ruble exchange rate have been essential factors when analyzing inflation in Russia. This paper focuses on gas and electricity prices that represent state-regulated prices in natural monopoly sectors and that have been factors of price increases specific to Russia. They have been raised by the state in order to narrow the gap between their domestic and international prices. It is suggested that there was a turnaround in 2008 when the role of each inflation factor changed significantly. Concerning the rebound of inflation rate since 2014, the overwhelming influence of depreciation of the ruble is indicated. Institutional factors such as the monopolistic structure of the economy that have kept the inflation rate high in Russia are also suggested.     

北京市区轨道交通对周边住房租赁价格的影响分析

基于北京市六环内住房租赁样本的交易数据,本文以北京地铁为例,采用空间回归模型实证探讨轨道交通对合租和整租这两种不同方式下的住房租赁价格的影响。结果表明：①基于轨道交通的就业可达性对于租赁价格会产生显著的增值效应,租客愿意为就业可达性较好的住房支付溢价租金。②地铁站点密度对整租的租赁价格具有正向影响,对合租无显著影响,而地铁换乘线路变量未对租赁价格产生显著影响。③轨道交通对合租和整租住房租赁价格的影响随着距离增加呈现差异化的演变规律。合租方式的租赁价格的影响随着实际路网距离的增加呈现单调递减,距站点500m范围内影响最大;而整租方式呈现倒“U”形变化,在500-1500m范围内增值效应最大。针对研究结果,建议政府加大租赁住房供给的同时要充分考虑轨道交通要素,精准施策以实现公共资源的空间高效配置。