A HEDONIC MODEL OF INTERREGIONAL WAGES,RENTS, AND AMENITY VALUES*

ABSTRACT This paper develops a general multimarket hedonic model appropriate for a national, interregional study of wages, housing prices, and location-specific amenities. The model encompasses the effects of interregional location, intraurban location, and city size. Typically, hedonic studies focus on a single market such as labor or housing and ignore interactions implicit in a more global compensation mechanism. Examination of the comparative statics of our model indicates that single-market differentials are partial prices and are unreliable measures of amenity values in an interregional context. Unbiased amenity values are estimated for a comprehensive set of amenities using data on housing prices for 34,414 households and wages for 46,004 workers from the 1980 Census of Population and Housing. Statistically significant differences in housing prices and wages are found due to amenities.     

THE DEMAND AND SUPPLY OF CHILD CARE: THE CASE OF THE CITY OF WATERLOO, ONTARIO*

The intention of this paper is to stimulate research on the demand and supply of child care services, an issue that has been largely neglected by geographers, although many of the problems involved lend themselves to geographical analysis. In addition, as the female labour force participation rate, the divorce rate, and the incidence of lone-parent families increase, so do the need for and importance of child care. We review the types of child care available in North America and provide statistics to demonstrate that the supply of child care falls short of demand. Furthermore, for the city of Waterloo, Ontario, through the use of 1981 and 1986 Census data we demonstrate that not only is the supply of licensed day care spaces insufficient to meet the demand, but also it is spatially arranged in a suboptimal way. Through population projections and net migration analyses we demonstrate that the demand for child care spaces in the near future is more likely to intensify in the periphery of the city, where the current supply is nonexistent. We thus argue that locational criteria should play a prominent role in the practice of licensing new day care centres. Cet article vise à encourager la recherche sur I'offre et la demande de services de garderie. Ce sujet a été largement négligé par les géographes měme si beaucoup des pro-blèmes rencontrés sont liés à des facteurs géographiques. De plus, la participation des femmes au marché du travail augmentant ainsi que le taux de divorce et le nombre de families monoparentales, les garderies deviennent de plus en plus nécessaires et importantes. Nous passons en revue les différents types de garderies qu'il est possible de trouver en Amérique du Nord et nous présentons des statistiques démontrant que le nombre actuel de garderies ne satisfait pas la demande. D'autre part, à I'aide des données du recensement canadien de 1981 et 1986 pour la ville de Waterloo, Ontario, nous prouvons que non seulement le nombre de places dans les garderies licenciées est insuffisant mais aussi que leur location géographique n'est pas optimale. À I'aide des études sur la population future et la migration nette, nous démontrons que la demande de garderies augmentera vraisemblablement à la périphérie de la ville où les garderies sont actuellement inexistantes. Par conséquent, nous estimons que le critère de localisation doit jouer un rǒle prédominant dans I'octroi des permis d'établissement de nouvelles garderies.     

THE INFLUENCE OF HUMAN CAPITAL INVESTMENT ON MIGRATION AND INDUSTRY CHANGE*

ABSTRACT. Individuals’human capital investments in their regions, industries, and occupations are measured as a function of the years they spend in their current region, industry, or occupation, and these investments are shown empirically to influence migration. There is an interesting life cycle pattern to migration: it falls rapidly with new investments, but then resurfaces as an opportunity to renew investments and increase the growth rate of income. Income regressions substantiate the life cycle path of income growth implied by the migration model.     

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.     

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.