MEASURING THE EFFECT OF COST VARIATION ON INDUSTRIAL OUTPUTS*

ABSTRACT. This paper introduces the household interactive variable input-output (HIVIO) model to measure the effect of cost variation on industrial outputs. The model produces a variety of cost elasticities that separate out impacts on industrial prices, imports, and outputs, with “own” and “cross” elasticity components. Like the conventional input-output multipliers, these cost elasticities can be useful parameters to evaluate the substituting behavior of firms and consumers. By using the 1980 Korean input-output transactions table, we find the wage and import price effects on industrial prices, outputs, and import demands.     

MEASURING THE DEVELOPMENT IMPACT OF A TRANSPORTATION SYSTEM: A SIMPLIFIED APPROACH*

The Multiregional Variable Input-Output (MRVIO) model is introduced to measure the development impact of a transportation system. The MRVIO model is a theoretically flexible, computationally simple, and cost-responsive model. Under the MRVIO model, regional input-output coefficients, trade coefficients, and trade flows become cost responsive and easy to compute. The MRVIO model is employed to measure the development impact of the Arkansas waterway during the period of 1974 to 1978. In the study, the U.S. economy is disaggregated into 3 regions and 35 industrial sectors. The MRVIO model estimates the economic conditions of these 3 regions with and without the waterway in terms of industrial output, income, employment, and trade flows.     

Interpreting Spatial Economic Structure and Spatial Multipliers: Three Perspectives

The measurement and interpretation of spatial economic structure have presented many problems for analysts. The notion of a spatial multiplier has received even less formal attention; part of the motivation for this paper is the examination of the degree to which sectoral decomposition analysis might prove useful in illuminating the paths of interaction across space that are associated with changes in exogenous activity levels. In this paper, we present three perspectives that examine spatial structure in the context of an aggregated interregional social accounting matrix for Bangladesh. These perspectives examine structure at the micro-, meso-, and macrolevels and are interpreted with the assistance of several alternative methods, including structural path analysis, the field of influence, the superposition principle, multiregional feedback loop analysis, and the Matrioshka Principle; the results are interpreted analytically and cartographically. Some attention is also devoted to the formulation of a general approach to spatial multipliers. It is shown that the structure of flows and the structure of influence reveal patterns that, taken together, provide important insights into an understanding of structure and may prove to form the basis for the eventual formal presentation of the spatial multiplier.     

Policy Type, Bureaucracy, and Urban Policies: Integrating Models of Urban Service Distribution

This study advances a comprehensive model of urban service distribution based upon types of urban services, to which little concern has been paid in the study of service distribution. By introducing an integrating typology of urban services, it shows how the pattern of service distribution varies depending on service type. By doing so, this study demonstrates that polarized discussions about the primacy of different explanatory models are inadequate and artificial, and that seemingly contradictory models are not necessarily mutually exclusive when the effect of service type on the distribution of services is taken into consideration.     

The direction of migration: a dynamic general equilibrium model

A two-sector dynamic general equilibrium model is developed "to investigate the direction of migration in response to differing demographic and consumption demand behavior, as well as variations in production conditions." The model, which involves a rural sector and an urban sector, incorporates "returns to scale and the natural rate of sectoral population growth as important determinants of the direction of migration, in addition to price and income elasticities, and the sectoral technical change rate with which...previous studies dealt."