Net migration,unemployment, and the business cycle

"An empirical test of the effects of exogenous shocks upon a region's population size is conducted in the framework of an equilibrium locational model. The model emphasizes the separation of endogenous from exogenous factors, a point omitted in most empirical studies of aggregate migration. Exogenous changes are manifested in the local relative cost of living and the local relative unemployment rate. Hypotheses are tested using a national sample of youth, in addition to census, data [for the United States]. Surprisingly, a simple measure of the size of shock to a regional economy has the greatest explanatory power compared to more sophisticated measures based on prior business cycles."     

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.