Public policy,local labor demand,and migration in Sweden, 1979-84

"A model of private local labor demand and interjurisdictional migration is presented and estimated using data from Swedish counties and municipalities for 1979-84. Our goal is to compare the effects on local labor markets of distinctive public-sector programs with those of traditional market variables. We find that local income taxes and tax-equalization grants have important effects on local labor markets; regional development policy measures and geographical-mobility subsidies do not. Thus, recent efforts scaling back some of these programs may not materially alter the regional economy's performance. Wages and other traditional market variables are also often found to influence significantly local labor markets."     

PARETO EXTRAPOLATION USING GROUPED INCOME DATA*

ABSTRACT. The distribution of above-median income groups can be described accurately by OLS regression of the Pareto distribution. The excellent fit of log-linear regression has led some researchers to conclude that extrapolated income measures in the open end of the distribution are reliable. The analysis of income distribution data for metropolitan areas reveals: (1) that OLS tends to consistently overestimate the number of families in the tail, and (2) that the overestimation can have serious implications for hypothesis testing.     

LOCATION AND MARKET POWER HOTELLING REVISITED*

ABSTRACT This paper analyzes the determination of industry structure in a product market, given a monopolistic factor market. The characteristics of industry structure examined include the number of firms, their pricing and locational pattern. It is shown how a monopolistic factor owner–a landowner–structures the product market in order to extract maximum rent. Asymmetry characterizes the resulting locational pattern. All the product market firms charge different prices in equilibrium. No matter how large the number of firms competing in the product market, the landowner can always guarantee himself positive profits. The paper concludes with a discussion of possible applications and tests of the theory.