DO LOCATION‐BASED TAX INCENTIVES ATTRACT NEW BUSINESS ESTABLISHMENTS?*

ABSTRACT This paper examines how offering tax incentives in a local area affects the entry of new business establishments. We use the federal Empowerment Zone (EZ) program as a natural experiment to test this relationship. Using instrumental variables estimation, we find that the EZ wage tax credit is responsible for attracting about 2.2 new establishments per 1,000 existing establishments, or a total of 20 new establishments in EZ areas. New establishment growth is strongest in the retail (about 40 new establishments) and service (about five new establishments) sectors, and offset by declines or slower growth in other industries.     

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.     

TECHNOLOGICAL CATCH‐UP AND GEOGRAPHIC PROXIMITY*

ABSTRACT This paper examines productivity catch‐up as a source of establishment productivity growth. We present evidence that, other things equal, establishments further behind the industry frontier experience faster rates of productivity growth. Geographic proximity to frontier firms makes catch‐up faster. Our econometric specification implies a long‐run relationship between productivity levels, where nonfrontier establishments lie a steady‐state distance behind the frontier such that their rate of productivity growth including catch‐up equals productivity growth at the frontier. We use our econometric estimates to quantify the implied contribution to productivity growth of catch‐up to both the national and regional productivity frontiers.     

THE DISTRIBUTION OF SERVICE ESTABLISHMENTS*

ABSTRACT All previous theory and research have led to the expectation that the density of service establishments will be proportional to the 2/3 power of the density of the population served by them. Study of the distribution of over 400 nongovernmental establishments refutes this expectation for such cases. A previous derivation from time minimization theory is reformulated to encompass these new findings.     

ENTREPRENEURSHIP,INFORMATION, AND GROWTH

We examine the contribution to economic growth of entrepreneurial marketplace information within a regional endogenous growth framework. Entrepreneurs are posited to provide an input to economic growth through the information revealed by their successes and failures. We empirically identify this information source with the regional variation in establishment births and deaths. To account for the potential endogeneity caused by forward‐looking entrepreneurs, we utilize instruments based on historic mining activity. We find that the information spillover component of local establishment birth and death rates have significant positive effects on subsequent entrepreneurship and employment growth for U.S. counties and metropolitan areas.     

Industry Characteristics Linked to Establishment Concentrations in Nonmetropolitan Areas

In this paper we investigate industry characteristics associated with the clustering of establishments in three-digit SIC manufacturing industries in nonmetropolitan areas. The dispersion parameter k of the negative binomial distribution is selected as the measure of industry spatial concentration. Associations between industry characteristics and spatial concentration are investigated using OLS regression analysis. Our findings indicate that the spatial clustering of establishments is positively related to industry average establishment size, reliance on natural resource inputs, labor intensity, cost shares of professional and technical employees, and cost shares of low-skilled workers. Agglomeration is negatively related to multiplant structure, employment in precision production, and reliance on local product and input markets.     

THE PHYSICAL FACTOR IN THE SYSTEM OF CONDITIONS DETERMINING THE LOCATION OF INDUSTRIAL PRODUCTION IN THE USSR

The generally accepted view that material-intensive industries tend to gravitate toward raw-material sources is analyzed in the case of the USSR. Primary processing is found to gravitate toward raw-material sources mainly in underdeveloped parts of the country. In the developed zone (European USSR, Urals, Transcaucasia), a significant spatial gap has developed between primary processing activities and raw-material sources as the original local resources become depleted and the industry must draw increasingly on long-haul raw materials. Several industrial groups are distinguished in terms of the pull of resource sites. In view of the current trend toward greater concentration of production (for cost-benefit reasons) and the growing volumes of production per establishment, primary processing establishments are usually dependent on more than one resource site, and this also tends to increase the length of haul. At the same time, the distribution of fuels, energy and water resources is assuming greater significance and tends to pull such industries as iron and steel, nonferrous metals, pulp and paper as well as petroleum refining toward the eastern areas of the USSR. The controversy over the location of a new integrated iron and steel plant based on ore from the Kursk Magnetic Anomaly is recalled.     

THE PROBLEM OF DEVELOPING RURAL SERVICES IN NOVGOROD OBLAST

Novgorod Oblast, in northwestern Russia, has been distinguished by a high rate of rural outmigration and depletion of agricultural labor resources. One key factor in slowing the flight from the land is an improvement in the quality and range of rural services. The impact of adequate services is shown by available data on the distribution of rural population by distance from service centers. The rate of decline of rural population is generally found to be lower in places near service centers than in more remote places. Since most of the rural places are too small to support service establishments, it is recommended that services be expanded in about 200 central places that show promise of future growth.     

CONSTRUCTION COSTS AND THE SUPPLY OF HOUSING STRUCTURE*

ABSTRACT Construction costs account for the bulk of the price of new houses in most markets, but their study has been relatively neglected. We document that there are economically large differences in construction costs across U.S. housing markets. We also estimate a very elastic supply for physical structure; hence, differences in construction activity across markets do not explain the variation in costs. Supply shifters that collectively do account for differences in building costs include the extent of unionization within the construction sector, local wages, local topography in terms of the presence of high hills and mountains, and the local regulatory environment.     

美国大都市区尺度上的工业区位研究

工业化和城市化之间的互动关系体现在都市区尺度上的工业区位上。本文在新经济地理学和城市地理学所揭示的产品差异化和城市集聚效应相互关系的基础上,通过区位熵分析、赫芬达尔-赫希曼指数,对美国工业区位与大都市区间的耦合关系进行实证研究。结果显示:集聚于大都市区核心区的往往是产品个性化和定制化程度较高的行业;位于大都市区外围区的大都是产品依赖于城市市场,但标准化程度较高的行业;传统制造业则往往位于非大都市区。多数都市工业的市场集中度较低,而大部分传统工业的市场集中度较高。这不仅印证了新经济地理学的理论推演和城市地理学的行业分析,而且对包括中国在内的转型国家城市及其产业发展具有重要的参考意义。     

The Effect of State Economic Development Incentives on Employment Growth of Establishments

This paper examines the effects of state economic development incentives on the growth of 366 Ohio manufacturing and nonmanufacturing establishments that launched major expansions between 1993 and 1995. Growth is measured as the actual employment change that occurred in these establishments and as the employment growth announced when expansions were launched. Empirical findings indicate that incentives have very little (or even a negative) effect on actual growth and they have a substantial positive effect on announced growth. Findings also suggest that establishments that received incentives overestimated their announced employment targets more than establishments that did not receive incentives.     

PECULIARITIES IN THE FORMATION OF POPULATED PLACES ON THE SEABOARD OF THE USSR

A number of investigators have noted a movement of Soviet population toward the seacoasts, contrasting with the nation's traditional inland development. The pull of the coast has been linked to the increasing foreign trade of the USSR and to greater involvement in ocean affairs in general. The author analyzes the recent growth of maritime urban places in terms of the nation's major maritime regions: Azov-Black Sea, Baltic, Caspian, Pacific and Arctic, compares the rates of urban population growth and discusses some of the factors that account for differences in regional development.     

SPREAD AND BACKWASH EFFECTS FOR NONMETROPOLITAN COMMUNITIES IN THE U.S.

Few studies empirically estimate the effects of metropolitan growth on nonmetropolitan communities at a national scale. This paper estimates the growth effects of 276 MSAs on population in 1,988 nonmetropolitan communities in the United States from 2000 to 2007. We estimate the distance for growth spillovers from MSAs to nonmetropolitan communities and test the assumption that a single MSA influences growth. We compare three methods of weighting cities’ influence: nearest city only, inverse‐distance, and relative commuting flow to multiple cities. We find the inverse‐distance approach provides slightly more reliable and theoretically supportable results than the traditional nearest city approach.     

DOES AGGLOMERATION MATTER EVERYWHERE?: NEW FIRM LOCATION DECISIONS IN RURAL AND URBAN MARKETS*

We test whether commonly used measures of agglomeration economies encourage new firm entry in both urban and rural markets. Using new firm location decisions in Iowa and North Carolina, we find that measured agglomeration economies increase the probability of new firm entry in both urban and rural areas. Firms are more likely to locate in markets with an existing cluster of firms in the same industry, with greater concentrations of upstream suppliers or downstream customers, and with a larger proportion of college‐educated workers in the local labor supply. Firms are less likely to enter markets with no incumbent firms in the sector or where production is concentrated in relatively few sectors. The same factors encourage both stand‐alone start‐ups and establishments built by multiplant firms. Commuting decisions exhibit the same pattern as new firm entry with workers commuting from low to high agglomeration markets. Because agglomeration economies are important for rural firm entry also, policies encouraging new firm entry should focus on relatively few job centers rather than encouraging new firm entry in every small town.     

Single-grain OSL dating at La Grotte des Contrebandiers (‘Smugglers’ Cave’), Morocco: improved age constraints for the Middle Paleolithic levels

Optically stimulated luminescence (OSL) measurements of individual quartz grains are reported for Middle Paleolithic (MP) or Middle Stone Age (MSA) deposits in La Grotte des Contrebandiers, Morocco. Single-grain measurements enable rejection of grains that may lead to under- or over-estimation of age due to malign luminescence properties or remobilisation of grains after burial. We identified the former using a range of experimental procedures and objective rejection criteria. Three post-depositional factors influenced the distribution pattern of equivalent dose (D_e) values for the remaining single grains: the disintegration of roof spall liberating unbleached, older grains into otherwise well-bleached sediments; the intrusion of a small number of younger grains from the overlying Upper Paleolithic deposits; and small-scale differences in the beta dose received by individual grains. Roof spall contamination was a significant problem, so we characterised the OSL signals and obtained D_e values for the calcareous sandstone in which the cave is formed, which allowed bedrock-derived grains in the MP/MSA deposits to be identified and rejected prior to age determination. We collected 31 samples from the MP/MSA deposits, and were able to calculate ages for 30 of them. These ages suggest that MP/MSA occupation of Contrebandiers was restricted to the interval between about 120 and 90 ka ago (Marine Isotope Stages 5d to 5b). Weighted mean OSL ages were obtained for samples associated with archaeologically sterile deposits at the base of the excavations (126 ± 9 ka), followed by two phases of the Moroccan Mousterian (122 ± 5 and 115 ± 3 ka), interspersed with archaeologically sterile deposits (112 ± 4 ka). The base and top of the Aterian were dated to 107 ± 4 and 96 ± 4 ka, respectively. Based on the grand weighted mean ages of 116 ± 3 and 103 ± 3 ka for the Moroccan Mousterian and Aterian at Contrebandiers, we suggest that these two industries may be separated by an occupation hiatus of up to 13 ± 3 ka at this site. Our single-grain OSL chronology confirms previous age estimates obtained for Contrebandiers and other sites in the vicinity, but are generally more precise and stratigraphically more coherent, due to the inherent advantages of measuring individual quartz grains and rejecting contaminant and other unsuitable grains before age determination.     

MANAGEMENT OF LARGE CITY REGIONS: DESIGNING EFFICIENT METROPOLITAN FISCAL POLICIES*

ABSTRACT Metropolitan areas (MSAs) are the location of the great majority of economic activity in the United States, and the largest produce a disproportionate share of output. It is thus critical for the economy's long‐term growth that large cities operate efficiently. In this paper, we briefly review the sources of productivity growth in cities. We then discuss the costs and benefits of political decentralization in large MSAs. After documenting the interdependence of the suburbs and central cities in large MSA, we develop a model that embodies many of the empirically verified aspects, including agglomeration economies and public goods. After calibrating the model to actual outcomes in a representative city, we simulate the effects of various kinds of fiscal redistributions. We conclude that, under the model, some kinds of fiscal redistributions can provide benefits in both cities and suburbs.     

AN INVESTIGATION OF THE ORIGINS OF VARIATION IN PERISHABLE ARCHITECTURE AT JONATHAN CREEK

Abstract

The Jonathan Creek site in Kentucky was excavated in the early 1940s in an effort to uncover the community plan of an entire Mississippian town and mound center. Although the project terminated prematurely, the remnants of 89 structures representing a diverse array of architectural foundation styles were documented. Quantitative and qualitative analyses of multiple attributes, such as posthole diameter and spacing, wall-trench width and depth, roof supports, and floor area, are necessary to adequately parse the variation in architectural style, construct inferences about the aboveground appearance of buildings, and suggest origins for the diverse construction methods used at the site. At least some of the distinctive differences in foundation preparation would have resulted in diversity in the appearance of finished buildings. Time is not wholly adequate to explain this diversity. Technological and functional choices made by the ancient builders account for some of this variation, while social, genealogical, and ethnic differences, and possibly distinctive ritual customs and traditions among the residents, explain other sources of variation.     

THE RELATIONSHIP BETWEEN THE LOCATION OF SERVICES AND RURAL SETTLEMENT

Soviet planners are advised to consider the linkage between rural settlement patterns and the provision of services, an issue that is assuming particular significance in connection with the present development program in the Nonchernozem Zone of the RSFSR. The number of service establishments per 1,000 population is not considered a useful indicator because it tends to be high in areas with widely dispersed settlement in small inhabited places, and yet does not reflect a high level of services because of the small size of the establishments. It is desirable to cluster sets of services in central places; the presence of a single kind of service (store, school, etc.) in a small place is found tantamount to having no service whatever. Adequate provision of services is found to reduce, or even reverse, rural out-migration.     

New ages for the post-Howiesons Poort,late and final Middle Stone Age at Sibudu,South Africa

Optically stimulated luminescence (OSL) measurements are reported for single grains of quartz from deposits within Sibudu rock shelter. Such measurements enable rejection of unrepresentative grains and application of the finite mixture and central age models to obtain the most reliable age estimates. Three types of single-grain equivalent dose (D_e) distributions were observed: one sample represented a single dose population, three samples indicated mixing between Iron Age (IA) and Middle Stone Age (MSA) deposits, and 10 samples (in addition to the three mixed samples) showed scattered distributions. The latter type resulted from differences in the beta dose received by individual grains. For these samples, the beta doses were modelled and adjusted accordingly. Ages for the 14 samples collected from MSA deposits post-dating the Howiesons Poort (HP) resulted in three age clusters, which are stratigraphically consistent with the three informally named cultural phases at Sibudu: namely, the post-HP, late MSA and final MSA. Weighted mean ages of 58.5 ± 1.4 ka, 47.7 ± 1.4 ka and 38.6 ± 1.9 ka were calculated for these phases, respectively. The three phases were separated by two occupational hiatuses with durations of 10.8 ± 1.3 ka and 9.1 ± 3.6 ka. We hypothesise that the punctuated presence of humans at Sibudu was determined by large-scale fluctuations in climate during oxygen isotope stage (OIS) 3, which resulted in alternating wet and dry periods. Phases of occupation correspond to wet periods when fresh water was available in the Tongati River, whereas intervals of site abandonment correspond to dry periods when people were forced to migrate in search of a reliable source of fresh water. Where people migrated to, remains unresolved.     

DIVERSITY WITHIN THE FRIENDLY SOCIETY MOVEMENT 1834-1911: THE VALUE TO COMMUNITY STUDIES

Abstract

This article is based on research carried out as part of the Family and Community Historical Research Society project into emigration schemes between 1834 and 1871. It examines the extent to which public financial support for emigration was forthcoming as a solution to the increase in pauperism in the Woolwich area following the run-down of government establishments in 1857, after the end of the Crimean War, and the closure of the dockyard in 1869. How the story unfolded is largely based on reports in the weekly edition of the Kentish Independent. An attempt has been made to answer some questions about the scale of two emigration schemes in terms of numbers, how the necessary finance was raised, the politics, the organization and the destination of the emigrants. Woolwich is situated on the south bank of the River Thames 10 miles down-stream of London Bridge and was at the time the location of a number of government establishments.