The determinants of county growth

The determinants of population and employment growth were explored from a broader interregional (as opposed to intraregional) perspective. Data for the 1970s, at the county level of disaggregation, were used to analyze the effects of economic, demographic, and climatic variables on population and employment growth in a simultaneous equation framework. The use of data from the more than 3000 US counties provides a considerably larger testing ground than those used in previous research. The point of departure was a conventional, general equilibrium model in which both households and producers are geographically mobile. The study's dependent variables refer to population, total, and manufacturing employment densities. Family income had a powerful effect in stimulating both population and employment density. A 10% increase in family income led to a 7.9% increase in total and a 9.2% increase in manufacturing employment densities. High family income must stand for high demand, and thus, firms are drawn to an area. High family income also drew households to an area. A 10% increase in family income led to a 5.5% increase in population density. High family income must represent "good" neighborhoods for households. High family income was positively correlated with population and employment density, but in other recent studies either a negative and significant relationship or an insignificant relationship were reported. Local taxes consist of the receipts of county government and those of municipalities, townships, school districts, and special districts within the county. The elasticities reported in Table 4 suggest that a 10% increase in such taxes resulted in about a 0.072% reduction in county population density during the decade. The Industrial Revenue Bonds (IRBs) and the percent of the labor force that is unionized are 2 potential policy instruments at the state level. The study results suggest that IRBs have not stimulated either manufacturing or total employment, and the coefficients were statistically insignificant in the structural equations. The elasticities imply that a 10% increase in percent union reduces total employment by 0.42% and manufacturing employment by 0.18%. The effect on population was tiny. Further, while not intended, the interstate highway program may have been a significant redistributor of population and employment but has not caused immigration of people and jobs from central cities.     

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.     

A HEDONIC MODEL OF INTERREGIONAL WAGES,RENTS, AND AMENITY VALUES*

ABSTRACT This paper develops a general multimarket hedonic model appropriate for a national, interregional study of wages, housing prices, and location-specific amenities. The model encompasses the effects of interregional location, intraurban location, and city size. Typically, hedonic studies focus on a single market such as labor or housing and ignore interactions implicit in a more global compensation mechanism. Examination of the comparative statics of our model indicates that single-market differentials are partial prices and are unreliable measures of amenity values in an interregional context. Unbiased amenity values are estimated for a comprehensive set of amenities using data on housing prices for 34,414 households and wages for 46,004 workers from the 1980 Census of Population and Housing. Statistically significant differences in housing prices and wages are found due to amenities.     

SINGING SUBJECTS AND SACRED OBJECTS: MORE ON MUNN'S ‘TRANSFORMATION OF SUBJECTS INTO OBJECTS’ IN CENTRAL AUSTRALIAN MYTH

Nancy Munn's ‘The Transformation of Subjects into Objects in Walbiri and Pitjantjatjara Myth’ is a landmark in our understanding of the processes by which the Aboriginal world is created and sustained. Her paper is summarised and then related to similar concerns extant among the neighbouring Aranda. Munn's account of relationships between people and country is shown to be part of a wider reality encompassing all stages of the life-cycle and characterised by a triple dialectic between ‘surface’ and ‘depth‘, between male and female, and between life and death. The study is preliminary to a psychological account of these dialectical processes to be published at a later date.