SPATIAL IMPACTS OF AGGLOMERATION EXTERNALITIES*

ABSTRACT This article examines the extent to which agglomeration economies in one location affect employment growth and establishment births, using data from the Dutch province of South‐Holland. The data are of particular interest because they represent a census, rather than a sample, of all establishments and the location of establishments can be pinpointed to within 416 (postal) zip code areas averaging less than 6 km² in size. Results suggest that agglomeration economies positively affect employment growth and the location of new establishments, but with the possible exception of manufacturing, this effect dies out quickly with distance. Thus, the main finding is that for many industries, agglomerative forces may well operate at a geographic scale that is smaller than a city.     

RESIDENTIAL SORTING AND ENVIRONMENTAL EXTERNALITIES: THE CASE OF NONLINEARITIES AND STIGMA IN AVIATION NOISE VALUES

This paper explores the sorting process in response to differing levels of aviation noise exposure in a housing market. Spatiotemporal hedonic pricing (HP) and stated choice (SC) results reflect nonlinearities and stigma. The HP models reveal nonlinear noise depreciation increasing from 0.40 to 2.38 percent per decibel as noise increases, while the SC noise values are lower in an area with high long‐term noise exposure. These nonlinearities are attributed to the spatial sorting of noise tolerant individuals. HP results from the same “noisy” area show a “stigma” from noise during the first year after the complete removal of aviation noise.     

WEST EDMONTON MALL: ENTREPRENEURIAL INNOVATION AND CONSUMER RESPONSE

West Edmonton Mall was developed and has maintained its position as Edmonton's primary focus of retailing, recreational, and leisure activity through innovative entrepreneurial skills and extensive promotions. These are viewed as necessarily concomitant to the size, location, and functional complexity of the mall relative to the size of the Edmonton market and the remainder of the city's retail structure. One strategy was to dominate the market by tempting consumers with the rewards of a complete shopping environment within the confines of one, carefully orchestrated retail complex. The success of this approach is evaluated through an examination of the entrepreneurial behaviour of the developer (Triple Five) in relation to the consumer spatial preferences of a sample of Edmontonians. From this evidence it is suggested that the mall's retail importance may not be as pervasive locally as is commonly thought. Consumer mobility and the intrinsic character of the retail structure are reasons suggested for this, both of which require further investigation and elaboration.     

TRAFFIC EXTERNALITIES AND SINGLE-FAMILY HOUSE PRICES*

ABSTRACT. This study is the first to lend empirical support to the common belief that traffic intensity affects property values. Using a standard hedonic pricing model, this paper investigates the price effects on housing of traffic within a neighborhood. Results using data on single-family housing transactions for two different locations in a medium-sized city show a substantial negative price effect of traffic externalities. The magnitude of the effect is shown to be location specific.     

PERCEPTIONS OF ENERGY PROBLEMS AND THE ADOPTION OF CONSERVATION PRACTICES IN EDMONTON AND CALGARY

The success of government efforts to stimulate energy conservation among the public ultimately depends on understanding patterns of energy consumption, perceptions of energy resources, and the adoption of conservation practices. These issues were addressed in a survey of residents of Edmonton and Calgary. Most respondents dismissed the seriousness of energy problems at the provincial level, although energy scarcity at the national and global scales was widely recognized. Conservation behaviour was characterized by a narrow range of adjustments perceived and adopted, attributable largely to patterns of resource perception and socio-economic factors.
La réussite des efforts gouvernementaux pour stimuler les conservations d'energie dépend, en dernière analyse, d' une compréhension des schémas de la consommation énergétique, desperceptions des resourcesénergétiques, et del'adoption d' habitudesconservatrices. On a interrogé les habitants d' Edmonton et de Calgary ace sujet. La plupart des réponses ignorent la gravité des problèmes d'énergie au niveau provincial, quoiqu'elles admettent la précarité des ressources énergétiques à l' échelle nationale et mondiale. L' attitude conservatrice se distingue plus particulikrèment à partir d' ajustements limités reliés géneralement aux schémas de perceptions énergétiques et aux facteurs socio-économiques.     

AGGLOMERATION EXTERNALITIES,PRODUCTIVITY, AND TECHNICAL INEFFICIENCY*

ABSTRACT Agglomeration externalities can have positive effects on both the production possibility frontier and technical inefficiency of firms. Increased levels of localized knowledge spillovers and substitution of internal inputs with external inputs may lead to fewer errors in decision‐making and execution of production tasks, thus causing firms to become technically more efficient relative to the production frontier. When we estimate a stochastic frontier production model on a large panel of salmon aquaculture farms, we find econometric support for positive agglomeration externalities on both the production frontier and technical inefficiency.     

SHOPPING AND LEISURE: IMPLICATIONS OF WEST EDMONTON MALL FOR LEISURE AND FOR LEISURE RESEARCH

In the context of three alternative approaches to the meaning of leisure (activity, time, and experience), this article uses West Edmonton Mall (with its vast array of shops and unique complex of recreational facilities) as a starting point to explore four relationships between shopping and leisure. These are: independence (shopping as purchasing); shopping for leisure (the purchase of goods for use in subsequent leisure time); shopping and leisure (when shops and leisure facilities are juxtaposed in a single facility like West Edmonton Mall); and shopping as leisure (when shopping begins to take on the attributes of leisure as an experience). It is concluded that the last category offers the most interesting questions for future research.     

THE IMPACTS OF TRANSPORTATION INFRASTRUCTURE ON PROPERTY VALUES: A HIGHER-ORDER SPATIAL ECONOMETRICS APPROACH

ABSTRACT.  We evaluate the impacts of enhanced transportation systems on property values for U.S. manufacturing firms, allowing for higher-order spatial error correlation. We use a state-level model of production cost and input demand that recognizes the productive contribution of public transportation infrastructure stocks. Our findings include significant impacts on property shadow values and input composition from both public highway and airport investment. We also find that these effects have a spatial dimension that depends on the proximity of the transport system; at least one and as many as three spatial error lags are significant in our estimating equations. Further, recognizing production growth from transportation system improvements augments the associated incentives for private capital investment.     

STRUCTURAL FEATURES OF WEST EDMONTON MALL

This article addresses the question of how West Edmonton Mall (wem) may be a new and distinctive component of retail spatial structure by analysing the retail and service attributes of the mall in the context of (I) Edmonton's retail structure at the regional shopping centre level, and (2) the internal structure of the mall. It is suggested that wem has added a new level to Edmonton's retail hierarchy, rivalling the downtown as the city's primate centre. The analysis of tenant changes leads to the conclusion that these changes tend to reflect a movement from unconventional to conventional tenant mix, and that wem is not much different, other than in sheer size, from most large regional shopping centres. The only unique structural characteristic appears to be the existence of enclaves not usually found in other malls.     

FACTS, VALUES AND RATIONAL DECISION MAKING

This paper introduces some distinctions related to facts and values, indicates some of the uses and misuses of these distinctions, and draws conclusions for the problem of rational decision making. A major claim is that everyone but metaphysicians should forget about the fact-value distinction and get on with the pursuit of truth and the performance of good deeds.     

WEST EDMONTON MALL AS A TOURIST ATTRACTION

Recent years have seen the mega-phenomenon assume increasing significance in tourism; it is not surprising, therefore, that West Edmonton Mall, the world's first mega-mall, should be viewed as a tourist attraction. This
article discusses the role of shopping as a tourist activity and the opportunity to shop as a facet of the appeal of a location to tourists. It examines the relative attractiveness of West Edmonton Mall as a tourist destination in this context and concludes that it has few outstanding characteristics beyond its unique size and range of leisure facilities. The permanence of its appeal beyond the regional scale is therefore unikely. The long-term appeal of shopping and related facilities is discussed in the context of a model of tourism development.     

MILL PRICING AND SPATIAL PRICE DISCRIMINATION MONOPOLY PERFORMANCE AND LOCATION WITH SPATIAL RETAIL MARKETS*

ABSTRACT. Most of the monopoly spatial price discrimination literature explicitly assumes uniform population density over space. It also implicitly assumes that firms (plants) are spatially isolated from each other with production and retail points that coincide in location. While departures from these assumptions have been explored separately in the literature, it remains to examine performance and location when these assumptions are relaxed simultaneously. What emerges in this paper is a model where density functions approximate a pair of cities isolated from other cities. Each city has its own retail market, while the location of a single production or wholesale point is determined by characteristics of the two markets. Comparisons of mill pricing and spatial price discrimination found in the spatial monopoly literature can be interpreted as special cases of the more general framework provided here.