A NOTE ON REAL WAGE RIGIDITY AND STATE UNEMPLOYMENT RATES*

ABSTRACT This paper extends the research of Hyclak and Johnes (1989) in analyzing the relationship between the rigidity in real wages and state unemployment rates. It presents evidence contrary to the empirical findings of Hyclak and Johnes in that measures of real wage rigidity are not robust over time in explaining changes in state unemployment rates. Moreover, an alternative proxy accounting for divergent growth patterns across states does not significantly affect changes in state unemployment rates.     

THE DEBT/TAX CHOICE IN THE FINANCING OF STATE AND LOCAL CAPITAL EXPENDITURES*

ABSTRACT. State and local governments commonly finance investment in public capital by issuing bonds and by using current revenues. This paper presents a model of state and local governments' reliance on borrowing in which the optimal share of debt in the financing of capital investment depends on the relative costs of tax and debt finance. Equations are derived and estimated for spending on public capital and the share of debt in the financing of that spending. The results reveal that the level of private incomes plays an important role in both the capital investment and financial decisions of the jurisdiction. Even after controlling for Sunbelt-Snowbelt differences in incomes, grants, outstanding debt and certain demographic factors, the results indicate that state and local governments located in the Snowbelt rely more heavily on bond issues to finance capital investment. Finally, the estimated invariance of the level of state and local capital investment to the share of debt in the financing of the investment suggests that investment decisions are not greatly affected by factors influencing the willingness to issue bonds.     

THE DETERMINANTS OF STATE MANUFACTURING GROWTH RATES: A TWO-DIGIT-LEVEL ANALYSIS*

ABSTRACT. This paper analyzes 1954–1987 state manufacturing employment growth in 19 two-digit industries. Markets were found to be the strongest influence in 18 industries. Labor was the second strongest, followed by a threshold variable. Weaker influences were resources, taxes, and amenities. Regional values for the market, labor, and threshold variables corresponded well with regional employment change in the Manufacturing Belt and all other regions of the U.S.     

THE INFLUENCE OF ECONOMIC DIVERSITY ON UNEMPLOYMENT AND STABILITY*

ABSTRACT. For many years, regional scientists, economists, and geographers have been unable to clarify the influence of economic diversity on unemployment and instability in regional economies of the United States, the United Kingdom, and Canada. This article presents plausible theory, proper units of analysis, valid measures, and more inclusive models of the diversity-stability relationship. The findings are generalizable because the sample includes most metropolitan areas in the U.S. The empirical analysis estimates the influence of diversity, employment concentrated in unstable industries, population size, growth rate, and control variables on unemployment and employment instability during the 1972–88 period. The results indicate that metropolitan areas which are more diverse experience lower unemployment rates and less instability than areas which are less diverse.     

STATE, CLASS AND INTERNATIONAL CAPITAL 2: THE DEVELOPMENT OF THE BRASILIAN STEEL INDUSTRY

This paper examines the forces underlying the development and form of the Brasilian steel industry since the 1930s. Foreign direct investment has been limited by Brasilian nationalist policies and by higher costs of steel production, but large scale, integrated plants could not be built by private capital due to insufficient resources. Thus the Brasilian steel industry combines large scale state owned plants (financed by foreign capital) and smaller scale privately owned plants. The operations of the plants are coordinated to reduce market uncertainty, permit the steel sector to advocate its own expansion plans, and delimit the spheres of public and private capital while excluding foreign commodity and productive capital. Even so, in the 1980s the steel industry in Brasil has faced a crisis of declining local demand, prompting a rapid expansion of exports.     

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.     

GENTRIFICATION AND THE SPATIAL CONSTITUTION OF THE STATE: THE RESTRUCTURING OF LONDON'S DOCKLANDS*

This paper argues that despite recent advances in research concerned with gentrification, the role of the state in this process has not been adequately conceptualised. Existing perspectives largely fail to provide a thorough analysis of the way in which the duality of the states ‘political’ and ‘economic’ functions are related, and how these are represented in concrete spatial situations. Through an empirical focus upon London's Docklands, the way in which the state, through the London Docklands Development Corporation, is spatially constituted and has influenced the gentrification process are examined. First, some conceptual and theoretical questions are discussed. Second, a brief historical context in which gentrification in the Docklands can be situated is provided, followed by an examination of how the restructuring of this area relates to the broader restructuring of state relations. The central role of the state in the gentrification of the Docklands is then considered by looking first, at how the LDDC has aided, through capital subsidisation, the production of a gentrified built environment giving rise to restructured patterns of socio-spatial polarisation. Second, the question of how this action and the inequalities arising from it have been legitimised, through political, ideological and socio-cultural means, is examined. Finally, some of the theoretical and political implications of this analysis are addressed.     

TRANSPORTATION RATES AND LOCATION OF THE FIRM: A COMPARATIVE STATIC ANALYSIS*

ABSTRACT This paper examines the role of the structure of transportation rates in the Weber-Moses triangle model. It shows that, in Zeigler's analysis, the appearance of the price elasticities of demand for inputs actually vanish by a simple application of the envelope theorem. Applying comparative statics analysis, we show when transportation rates are a function of quantity and distance, the assumptions that the production function is homogeneous of degree one and the transportation rates elasticities with respect to quantity and distance are constant are not sufficient to insure that the optimum location is independent of the level of output. This result is significantly different from that obtained by either Miller and Jensen or Zeigler.     

STATE INTERVENTION IN LANDSCAPE PRODUCTION: THE WHEATLAND RIOT AND THE CALIFORNIA COMMISSION OF IMMIGRATION AND HOUSING*

The role of the state in landscape production has been little theorized in geography. In this paper, I examine the role played by state institutions in determining landscape morphology by focusing on the activities of the California Commission of Immigration and Housing as it attempted to mitigate the conditions that led to the violent Wheatland “riot” of 1913. This rebellion by radicalized migratory workers was central to the creation of the abundant agricultural landscape of California in the years before the United States entered World War I. By telling the story of Wheatland and the state responses it induced, I hope to move discussions of landscape geography beyond both traditional concerns with landscape as a reflection of “culture” and contemporary concerns with metaphors of landscape as text.     

INTERREGIONAL ARBITRAGE AND THE SUPPLY OF LOANABLE FUNDS: A MODEL OF INTERMEDIATE FINANCIAL CAPITAL MOBILITY*

ABSTRACT This paper develops a model of regional financial markets which can encompass different degrees of spatial financial integration. The behavior of the system is analyzed under alternative assumptions about the time frame of analysis and the extent of the flexibility of interest rates. It is argued that links may exist between regional real and financial sectors even in the short run and that such links must, through the regional balance of payments, exist in the long run, even where there is perfect financial spatial integration. It is observed that these relationships have generally been ignored by regional economic model builders.     

SCARCITY AND AGRICULTURAL LAND RENT IN LIGHT OF THE CAPITAL CONTROVERSY: THREE VIEWS*

This paper examines the different theories of agricultural land rent proposed by the neoclassical, Marxist, and neo-Ricardian schools of economic thought. In so doing the paper undertakes two tasks: first, to explore the different definitions of scarcity that emerge from each school; and secondly to check the consistency between the view of scarcity and the analytical theory of rent that each school proposes. It is concluded that for each of the schools there is an inconsistency between their respective view of scarcity and the corresponding theory of rent, although the reasons for that inconsistency vary. It is further argued that although this inconsistency cannot be resolved for the case of neoclassical economics, there is some prospect of resolution for Marxist and neo-Ricardian theories.