AN EMPIRICAL ANALYSIS OF INTERREGIONAL PRICE LINKAGES*

ABSTRACT Vector autoregression models are used to analyze the relationships between Texas and Illinois corn prices, and the New Orleans export price. Decomposition of error variances suggests an increasing exogeneity in the recent years between the export market and the two U.S. markets. Impulse response functions indicate that the export price influences both the Illinois and Texas prices.     

ON THE PLAUSIBILITY OF THE SUPPLY-DRIVEN INPUT-OUTPUT MODEL: EMPIRICAL EVIDENCE ON JOINT STABILITY*

ABSTRACT. This paper addresses the issue of the plausibility of the supply-driven input-output model from an empirical standpoint. We suggest that requiring production coefficients to remain perfectly fixed during an application of the supply-driven input-output model is unnecessarily restrictive given the extensive use of approximation methods in mathematics, economics and regional science. Simulations with the supply-driven version of an input-output table for a representative region are shown to result in changes in the corresponding production coefficients well within conventional tolerance levels.     

INTERREGIONAL FEEDBACKS IN INPUT-OUTPUT MODELS: THE LEAST UPPER BOUND*

ABSTRACT. The least upper bound to the overall percentage error resulting from the omission of interregional feedbacks in input-output analysis is defined. This limiting value is the most informative of all upper bounds. A procedure for its computation is outlined and a number of experiments, using U.S. data, are discussed.     

INTERREGIONAL WAGE DIFFERENTIALS: AN EQUILIBRIUM PERSPECTIVE*

ABSTRACT This paper empirically analyzes two competing explanations for observed interregional wage differentials among full-time U.S. workers: (1) differences in the average levels of market valued labor characteristics, and (2) differences in rates of return to the characteristics. Hedonic wage equations are estimated for broad U.S. regions using detailed measures of human capital, work environment, and personal attributes collected by a national random sample mail survey. Statistical tests reveal little tendency for interregional structural shifts in the wage equations estimated, an outcome which rests on the inclusion of important, but seldom measured, wage determining variables.     

UPPER BOUNDS ON THE SIZES OF INTERREGIONAL FEEDBACKS IN MULTIREGIONAL INPUT-OUTPUT MODELS*

ABSTRACT. Upper bounds are presented for a measure of the overall percentage error caused in a multiregional input-output model when interregional feedback effects are ignored. This error figure is thus a measure of the magnitude of interregional linkages. The upper bounds are expressed as a function of the levels of self-sufficiency in the regions in the model and of the norms of the regional technical coefficients matrices. Experimental results are presented for a variety of examples that are thought to reflect real-world situations, and it is clear that in many cases the upper bound (and hence the error) is extremely small. The implication is that single-region input-output models may be adequate for a variety of questions.     

LAND BANK 2.0: AN EMPIRICAL EVALUATION

In 2009, Cuyahoga County, Ohio (Cleveland and 58 suburbs), established a land bank to acquire low‐value properties, mitigate blighted housing, and slow the decline of property values. This empirical study evaluates the effectiveness of the land bank by estimating spatially corrected hedonic price models using sales near the land‐bank homes. The land bank reduces the negative externalities of the properties it acquires. Its largest impact is the preservation of equity in unsold homes. We also estimate the recovered value for homes sold during the study period and the property tax revenue that may have been forgone, absent the land bank.     

THE AGGREGATED SPATIAL CHOICE MODEL VS. THE MULTINOMIAL LOGIT: AN EMPIRICAL COMPARISON USING MIGRATION MICRODATA

Frequently, in spatial interaction analysis, researchers are forced to use destinations that are zonal aggregates of the ‘real’ destinations perceived by the participants in the interaction process. Previous simulation studies demonstrated that, under certain circumstances, the aggregated spatial choice model can outperform the popular ordinary multinomial logit model, both in explanatory power and predictive ability. In this paper, the two models are compared with interprovincial migration microdata for the time period 1990-91, obtained from the 1991 Canadian census. Since this is not meant to be a migration study, the analysis is limited to out-migrants from Ontario. The results indicate that, at least with the data used, the multinomial logit model performed reasonably well. The paper, however, highlights some practical advantages that can accrue from the use of the aggregated model. Dans l'analyse de l'interaction à référence spatiale, il arrive fréquemment que les chercheurs soient contraints de se servir de destinations qui regroupent les?vraies?destinations perçues par les participants dans le processus d'interaction. Les études en simulations antérieures ont démontré que, dans certaines circonstances, le modèle groupé des choix à référence spatiale peut donner de meilleurs résultats que le modèle ordinaire commun du logit multinomial, sur le plan de la capacité d'explication comma sur celui de la valeur de prévision. Dans la présente étude, on fait la comparaison entre les deux modèles en utilisant les microdonnées sur l'émigration interprovinciale en 1990-91 obtenues par le recensement de 1991. L'analyse ne porte que sur les émigrants de l'Ontario puisqu'elle ne vise pas particulièrement l'étude de l'émigration. D'après les résultats, le modèle employant le logit multinomial fonctionne relativement bien, au moins avec les données utilisées. Toutefois, l'étude souligne certains avantages pratiques pouvant inciter à se servir davantage du modèle groupé.