TRANSBOUNDARY INCOME AND EXPENDITURE FLOWS IN REGIONAL INPUT-OUTPUT MODELS*

ABSTRACT. Nearly all regional input-output models have been constructed without a proper accounting of inflows and outflows of personal income and personal consumption expenditures. Typically invoked is a no cross-payments assumption, analogous to the no cross-hauling assumption for commodities. We present a new accounting framework based on the classification of flows according to the location of income generation, receipt, and spending, and argue that only flows endogenous in all three respects should be part of a closed regional I-O model. We use the framework to compute the upward bias in multipliers in a typical regional I-O model. We also present several methods for estimating transboundary flows.     

MODELLING OF STRUCTURAL ACCELERATIONS AND APPLICATION TO CONTROLLER DESIGN

In this paper a method for the identification of simplified linear models for building structures is applied to the case when acceleration, rather than displacement, is measured. A frame from benchmark structural controller studies is simulated, and from the input-output data of these simulations, simplified models for the acceleration response of the frame are obtained that have far fewer degrees of freedom. One of these simplified models is used to design a controller, which is tested using an evaluation model from the benchmark controller studies and found to be effective.     

RISK AND INCOME TRADEOFFS IN REGIONAL POLICY: A PORTFOLIO THEORETIC APPROACH*

ABSTRACT. Policy makers often try to raise a region's income by altering its industrial mix. However, such attempts to increase local income may have an adverse effect on the stability of the region's economy. In this paper, we develop single-, aggregate-, and multiregional portfolio models that can be used by policy makers to generate frontiers of risk/income-efficient industrial mixtures for a regional economy. These portfolio models are modified for application to the tourist industry in six regions of Spain. In practice, we find that the introduction of bounds on the magnitude of sector rebalancing has a major effect on the model solutions.     

LOCAL PUBLIC SERVICE PROVISION AND SPATIAL INEQUALITY IN CHINESE CITIES: THE ROLE OF RESIDENTIAL INCOME SORTING AND LAND‐USE CONDITIONS

Spatial inequality refers to unequal access to local public services between high‐ and low‐income households in relation to their residential locations. We examine two hypotheses regarding the role of income sorting and land‐use conditions in shaping spatial inequality in Chinese cities, where residents have little direct influence on local public service provision. First, in the presence of resource indivisibility, travel cost, and location‐based rationing, scarcity of public‐service resources in a city makes access to public services more uneven across neighborhoods, thus exacerbating income sorting and spatial inequality in the city. Second, the exacerbating effect of resource scarcity is mitigated by land‐use conditions that limit income sorting. Estimates of willingness to pay by households of different income levels for public‐service resources across cities corroborate both the exacerbating effect of resource scarcity and the mitigating effect of inclusive land‐use conditions.     

SOLVING A THREE-DIMENSIONAL URBAN ACTIVITY MODEL OF LAND USE INTENSITY AND TRANSPORT CONGESTION*

ABSTRACT Recent developments in combining input-output and transportation planning models have made it possible to construct realistic comprehensive urban and regional activity models of land use intensity. These models form the basis for a rigorous approach to studying the interactions among urban activities. However, efficient computational solution methods for implementing such comprehensive models are still not available. In this paper, an efficient solution method for a nonlinear programming urban systems model is developed by combining Evans's partial linearization technique with Powell's hybrid method. The solution algorithm is applied to a small but realistic urban area with a detailed transportation network.     

PRODUCT-MIX AND TECHNOLOGICAL CHANGE WITHIN THE LEONTIEF INVERSE

ABSTRACT. Intertemporal differences in input-output coefficients can be attributed to technological change and to changes in the mix of products composing the aggregate sectors of input-output models. In this work, we develop the theoretical foundation necessary to separate these changes for both the structural and Leontief inverse matrices. Using this foundation, we examine the relative empirical importance of technological and product-mix change. The product-mix effect is then combined with RAS estimates of the technological effect to form updated estimates of the inverse. Results show that the accuracy of updated input-output coefficients can be improved in this manner.     

THE IMPACT OF ECONOMIC OPPORTUNITY, AMENITIES AND FISCAL FACTORS ON AGE-SPECIFIC MIGRATION RATES

ABSTRACT. Migration models have considered several different categories of determinants, including economic opportunities, amenities, and state and local fiscal factors. Migration has also been shown to depend on the individual's position in the life cycle. This paper represents a first attempt to integrate all three categories of determinants of migration into a life-cycle framework. Empirical findings generated from a countrywide model of white male migration, over the period 1970 to 1980, reveal that all three types of determinants are important. Specifically, economic opportunities are most influential for males during their working years. Amenities are also found to follow a life-cycle pattern with older migrants more attracted to amenable locations than their younger cohorts. Finally, state income and death taxes display life-cycle effects; working males in their peak earning years are detracted by high income taxes while all migrants aged 55 to 69 avoid counties in states with high inheritance and estate taxes.     

A LONG RUN ECONOMIC EFFECT ANALYSIS OF ALTERNATIVE TRANSPORTATION FACILITY PLANS—REGIONAL AND NATIONAL

Initially we explained the main part of our model which enabled us to estimate and compare the long run and global economic effects of alternative transportation facility plans. Usually the short run effects of this kind of regional economic impact have been analyzed by input-output models, and the long run effects by econometric models. However, in this model, the input-output model and the econometric model were combined so as to enable us to analyze the global and long run economic effects. The interregional trade pattern coefficients and input coefficients change endogenously in each year in this model. It has previously been assumed that the fixedness of interregional trade pattern coefficients and input coefficients are the weakest points in applying the interregional input-output model for long run studies. In our model, on the contrary, variation of these coefficients has central importance. We then showed the results which were obtained from applying this model to a comparison of the long run economic effects of alternative bridge construction plans over the Japan Inland Sea. The results obtained from this demonstrative calculation are reasonable. Thus, we think, this model has sufficient applicability to the comparison of economic effects of alternative plans for nationwide transportation facility improvement. However, the variations of production cost differentials between regions are given exogenously in this model. To make them endogenous, agglomeration economies should be considered more precisely. In that case, the applicability and the precision of this model could be improved.     

ECONOMIC FUNDAMENTALS AND URBAN–SUBURBAN DISPARITIES

ABSTRACT This paper develops a spatially explicit model to examine how urban and suburban communities evolve differently with changes in local economic fundamentals such as rising income or falling commuting costs in the metropolitan area. The model highlights the importance of environmental amenities and the economy of scale in the provision of public services as determinants of urban spatial structure. Results suggest that urban sprawl, income segregation, and jurisdictional disparities are driven by the same economic conditions and thus tend to co‐exist. Rising incomes or falling commuting costs for high‐income households in a metropolitan area tend to increase land prices and public services in every community, while rising incomes or falling commuting costs for low‐income households can have the opposite effects.     

INTERRELATIONAL INCOME-DISTRIBUTION MULTIPLIERS FOR THE WEST VIRGINIA ECONOMY*

ABSTRACT. This paper presents a set of Miyazawa interrelational multipliers, which measure how direct changes in the income of each income bracket result in indirect and induced income changes in all other brackets. The multipliers have been calculated for a 9-by-9 pairing of income brackets for West Virginia in 1982. Their estimation is based on a combination of survey and nonsurvey data in three forms: a 1982 West Virginia input-output table, a multisector income-distribution matrix, and an income disaggregated consumption matrix. The paper illustrates the usefulness of the multipliers by showing how they provide insight into the viability of trickle-down theory and the incidence of regional development policy.     

LEONTIEF TECHNOLOGY AND THE LOCATION OF THE FIRM IN A WEBER TRIANGLE–SPECIFIC LOCALIZATION THEOREMS*

In special cases of the Leontief technology's constant input-output coefficients, the general localization theorem that an interior location is a global optimum if every input or market vertex is not a local optimum [Kusumoto (1984)] is confirmed and strengthened. Sufficient conditions are proposed for the portion of a triangular space in which the firm will locate. Finally, it is shown that, if input substitution is permitted and its effects dominate spatial effects, the firm's total cost function will be monotone, as well as concave, hence the vertex is a global optimum if it is a local optimum.     

THE ROLE OF ERROR STRUCTURE IN SIMULATIONS ON REGIONAL INPUT-OUTPUT ANALYSIS*

Previous simulation experiments on regional input-output analysis have concluded that regional purchase coefficients are more important than technical coefficients in contributing to multiplier accuracy. This paper shows that the multiplicative error structure used in those experiments may have biased the results. A new error structure, combining a multiplicative and an additive component is introduced, and simulations are conducted on randomly generated models. The analysis shows that the results are sensitive to the relative magnitudes of the two error components, as well as to the closure of the model.     

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.     

REGULATORY FEDERALISM AND THE DISTRIBUTION OF AIR POLLUTANT EMISSIONS*

ABSTRACT Recent empirical work suggests that (i) incomes are converging through time, and (ii) income and pollution levels are linked. This paper weds these two literatures by examining the spatial and temporal distribution of pollution. After establishing that theoretical predictions about whether pollution will converge are critically linked to certain structural parameters, we explore pollution convergence using state‐level data on two important pollutants—nitrogen oxides and sulfur oxides—from 1929 to 1999. We find stronger evidence of converging emission rates during the federal pollution control years (1970–1999) than during the local control years (1929–1969). These results suggest that income convergence alone may not be sufficient to induce convergence of pollutant emissions.     

A PATH ANALYTIC EXPLORATION OF INCOME CLUSTERING AND LOCAL INEQUALITY

This article explores relationships among income status, economic resources, service needs, and taxing policies for municipalities and schools in 39 metropolitan suburbs of the Milwaukee SMSA. The results indicate some modest support for those who are concerned about the impact of class and income clustering, as well as government fragmentation, on inequalities regarding local tax policy. Use of path analysis to explore some of the possible alternative linkages that account for patterns of fiscal inequality among suburban municipalities shows that fiscal disparities resulting from income clustering by jurisdiction is only partially attributable to resourse and need inequities. It might also be that income status, reflecting differing service preferences, operates directly to generate inter municipal fiscal disparities.     

LOCAL LAND POLICY OVERRIDES: WHEN ARE THEY APPROPRIATE?

The state has the power both to enable local communities to regulate land usage, as well as to override local jurisdictions' zoning policies. In Massachusetts, two pieces of legislation have empowered the state to override local land use control for the purpose of constructing two types of facilities: low and moderte income housing and hazardous waste treatment facilities. Both initiatives have stimulated considerable debate and controversy. This paper provides a framework or “test” for understanding the relative appropriateness of state overrides in general. In addition, the two Massachusetts case are discussed and analyzed according to these criteria.     

LOW- AND MODERATE-INCOME HOUSING IN THE SUBURBS: THE MASSACHUSETTS "ANTI-SNOB ZONING" LAW EXPERIENCE

Can a state re-assertion of power to override local exclusionary zoning practices “open up” the suburbs for low and moderate income households? Such an approach, tried in Massachusetts over the last ten years, has had some notable, though limited results. Some 14,000 units of LMIH have been proposed under the innovative provisions of the Massachusetts “Anti-Snob Zoning” Law, but only about 3,600 have actually been built. The foremost factor limiting the impact of the law has been persistent resistance to it by suburbanites. While much suburban opposition undoubtably stems from racial prejudice and fears, some is based upon rational concern over the costs to local communities of providing services to the residents of subsidized housing. Offsetting these costs with state and/or federal subsidies could lower major barriers to the creation of more housing opportunities in the suburbs for low and moderate income persons.     

In Vindication of the Ghosh Model: A Reinterpretation as a Price Model

Ghosh's ‘supply-driven’ input-output model is a well-known alternative for Leontief's traditional ‘demand-driven’ input-output model. The Ghosh model calculates changes in gross sectoral outputs for exogenously specified changes in the sectoral inputs of primary factors. Typically, the model is interpreted so as to describe physical output changes as caused by changes in the physical inputs of primary factors. It has been convincingly argued, however, that this interpretation in terms of quantities is implausible. In the present paper it is shown that the supply-driven input-output model becomes plausible, once it is interpreted as a price model. That is, sectoral output values change due to price changes, which are caused by price changes for the primary inputs. Therefore the term Ghosh price model is adopted for the supply-driven model, whereas the demand-driven model is referred to as the Leontief quantity model. Dual to this Leontief quantity model is the standard Leontief price model. It is shown that the results obtained by the two price models are equivalent. Interpreting the supply-driven input-output model as a price model also allows for a meaningful interpretation of the inverse matrix in terms of multipliers. As the dual to the supply-driven (or Ghosh price) model the Ghosh quantity model is derived, which is equivalent to the demand-driven (or Leontief quantity) model.     

On the Comparative Effectiveness of the Economic Structure of Regions

An important problem in insuring optimal operation of the centrally planned and state-controlled economy of the Soviet Union is to measure the efficacy of the industrial structure and productive specialization of republics and economic regions. Several measures of the efficacy of regional economies have been proposed, involving various relationships between labor productivity, the value of capital plant and equipment and the value of output. All these measures are unsatisfactory, in the author's view, and an alternate approach is suggested, using the net concept of national income produced by regions. This approach has been made possible by the recent calculation of input-output tables for republics and economic regions. The idea of using national income as a measure of regional economic efficacy was first proposed in the Soviet literature by A. Ye. Probst, whose comments appear elsewhere in the issue of Soviet Geography.     

LOCAL STATUS AND NATIONAL SOCIAL WELFARE

Perceptions of individual well-being are influenced by local status, i.e., one's place in the income distribution of one's reference group. In general, reference groups are smaller than the entire nation. If national social welfare is an aggregate of individual's well-being, then it is not symmetric with respect to all individuals. A geographical interpretation of reference groups means that the welfare of a family living in one region is only influenced by other families in that region. An empirical application, using states, shows that a Gini index modified to reflect local status showed much less improvement 1949-1979 than did the standard Gini.