DIRECTIONS FOR DIVERSIFICATION WITH AN APPLICATION TO SASKATCHEWAN*

ABSTRACT. Traditional models of regional diversification do not capture the trade-off between stability and living standards. In this paper, we characterize regions as open activity models subjected to both productivity and price shocks. We then partially rank small diversification policies by the direction in which they point away from the current industrial structure in mean-variance space. Some general patterns emerge. In particular, diversification for regional self-sufficiency and away from regional comparative advantage may be undesirable.     

Bergen and Seattle: A tale of strategic planning in two cities

Strategic planning, as developed in the military and business sectors, offers a procedural model with important differences from the earlier comprehensive approach. Economic and physical development strategies, often called for by national planning legislation in European countries, frequently have little in common with the model proposed by Steiner for private firms, or espoused for the public sector by Bryson and others: there appears to be confusion resulting from use of similar terms. This paper investigates efforts to employ at least the major features of strategic planning in two institutionally and culturally different contexts, nearly half a world apart. In Bergen, Norway, these principles have informed economic development planning and planning for a major district of the city. In the case of Seattle, Washington, USA, the new comprehensive plan is based on framework policies developed during a 2‐year public process, and now that the city‐wide plan is adopted, Seattle is turning to developing neighbourhood plans which will provide more operational detail for guiding public and private investments. Comparison of these two cases both provides contrasts and similarities stemming from the two different contexts, and help to evaluate the transférability of strategic planning from the private to the public sector.     

LAND USE IN THE PRESENCE OF AN ATMOSPHERE EXTERNALITY,WITH AND WITHOUT CORRECTIVE TAXES*

ABSTRACT. Total cleared area in a von Thünen land-use model drives an atmosphere externality which depresses agricultural productivity uniformly throughout the region. Exogenous events that encourage clearance and use of a larger cultivated area (output price or population increase) exacerbate the externality. Imposition of a simple, corrective tax on land rents does not reverse these patterns but does mitigate the increase in the externality and leaves cultivators with higher incomes than they would obtain without the tax. We examine an optimal tax on land rents, designed to maximize the social value of land rents in the region, and an output tax.