PRODUCTION TECHNOLOGY UNCERTAINTY AND THE OPTIMAL LOCATION OF THE FIRM*

ABSTRACT This paper investigates the implication of production-technology uncertainty for the exclusion theorem. The paper presents the result that the risk-averse firm facing production technology uncertainty prefers an intermediate location to avoid risk under certain conditions. The firm chooses an intermediate location (over a corner location) particularly if its degree of risk aversion overwhelms the inherent convexity of profit with respect to location. The latter depends, in turn, on the structure of production technology characterized by the elasticity of substitution and returns to scale parameters.     

THE EFFECTS OF LOCAL TAXES AND PUBLIC SERVICES ON RESIDENTIAL DEVELOPMENT PATTERNS*

ABSTRACT. This paper incorporates an exogenous taxing and service-providing public sector into a dynamic residential land-use model in order to examine how local-government fiscal policies alter the pace and pattern of residential development. The model is used to derive the comparative-dynamic responses to variations in the income, sales, and property taxes and public-service time paths. The results show how tax and expenditure effects systematically depend upon the anticipated relative growth rates in rents to alternative uses and vary across locations within a given urban area as well as across urban areas themselves.     

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.     

A dynamic model of regional population growth and decline

"This paper presents a two-sector dynamic model of regional population change. The model contains a migration equation, an earnings equation, and an amenity equation for each region. In the context of this model, migration is seen as a disequilibrium process through which the regional populations move towards equilibrium positions. Migration occurs when one region is perceived to be superior to the other on the basis of its earnings and amenity levels. Equilibrium is achieved when population movements between the regions eliminate any differences in their relative attractiveness. A comparative-static analysis of the model is presented to analyze the effects of policy changes and exogenous shocks on the distribution of population among the regions." The geographical focus is on the United States.     

Book reviews

Australian politics

Francis G. Castles (ed.), Australia Compared. People, Policies and Politics (Sydney: Allen and Unwin, 1991) pp.290. $22.95 ISBN 0 04 442339 X.

A. Kouzmin and N. Scott (eds), Dynamics in Australian Public Management: Selected Essays (Melbourne: Macmillan, 1990) pp.454. $34.95 ISBN 0 7329 0187 1.

Raymond Markey, The Making of the Labor Party in New South Wales 1880–1900 (Sydney: New South Wales University Press, 1988) pp.320. $24.95 ISBN 0 86840 370 9.

Rosemary Whip and Colin A. Hughes, Political Crossroad: The 1989 Queensland Election (St. Lucia: University of Queensland Press, 1991) pp.270. $29.95 ISBN 0 7022 2362 X.

Glenn Withers (ed.), Commonality and Difference: Australia and the United States (Sydney: Allen & Unwin in association with the Australian/American Educational Foundation, 1991) pp.138. $19.95 ISBN 1 86373 074 5.

Comparative and international politics

Joel D. Aberbach, Keeping A Watchful Eye: The Politics of Congressional Oversight (Washington DC: The Brookings Institution, 1990) pp.288. $US12.95 ISBN 0 81570 059 8.

Zehra F. Arat, Democracy & Human Rights in Developing Countries (Boulder and London: Lynne Rienner Publishers, 1991) pp.219 $n.p. ISBN 1 55587 170 4.

Ian Bellany, A Basis for Arms Control (Aldershot: Dartmouth, 1991) pp.155. $n.p. ISBN 1 85521 051 7.

Noam Chomsky, Deterring Democracy (London and New York: Verso, 1991) pp.421. $n.p. ISBN 0 86091 318 X.

Ivo Daalder, The Nature and Practice of Flexible Response: NATO Strategy and Theater Nuclear Forces Since 1967 (New York: Columbia University Press, 1991) pp.411. $US57.00 ISBN 0 231 17520 0.

John Darwin, The End of the British Empire: The Historical Debate (Oxford: Basil Blackwell, 1991) pp.128. $27.95 ISBN 0 631 16428 6.

Bogdan Denitch, The End Of The Cold War: European Unity, Socialism, and the Shift in Global Power (London: Verso, 1990) pp.123. $24.95 ISBN 0 86091 532 8.

David Donnison, A Radical Agenda: After the New Right and the Old Left (London: Rivers Oram Press, 1991) pp.215. £9.95. ISBN 1 85489 030 1.

Peter Drysdale (ed.), The Soviets and the Pacific Challenge (Sydney: Allen & Unwin, 1991) pp.160. $17.95 ISBN 1 86373 010 9.

Leon Hurwitz and Christian Lequesne (eds), The State of the European Community (Boulder: Lynne Rienner, 1991) pp.475. $49.95. ISBN 1 55587 249 2.

Tetsuya Kataoka, The Price of a Constitution: The Origin of Japan's Postwar Politics, (New York: Taylor & Francis, 1991) pp.237. $n.p. ISBN 0 8448 1714 7.

Daphne A Kenyon and John Kincaid (eds) Competition among States and Local Governments (Washington, DC: The Urban Institute Press, with the Advisory Commission on Intergovernmental Relations, 1991) pp.285. $n.p. ISBN 0 87766 517 6.

Jan‐Erik Lane and Svante O. Ersson, Politics and Society in Western Europe, 2^nd edn, (London: Sage, 1991) pp.421. £10.95. ISBN 0 8039 8407 3.

Stephanie Lawson, The Failure of Democratic Politics in Fiji (Oxford: Clarendon Press, 1991) pp.307. $90.00 ISBN 0 19 827322 3.

E.M. McLeay (ed.), The 1990 General Election: Perspectives on Political Change in New Zealand, Occasional Publication No.3 (Wellington: Victoria University of Wellington, 1991) pp.183. $NZ29.95. ISBN 0 475 11202 4. ISSN 1170 7356.

Henry Phelps Brown, Egalitarianism and the Generation of Inequality (Oxford: Clarendon Press, 1991) pp.552. $n.p. ISBN 0 19828 390 3.

Philip R. Pryde, Environmental Management in the Soviet Union (Cambridge: Cambridge University Press, 1991) pp.314. $37.50 ISBN 0 521 40905 5.

Anthony Smith The Age of Behemoths. The Globalization of Mass Media Firms (New York: A Twentieth Century Fund Paper. Priority Press Publications, 1991) pp.80. $n.p. ISBN 0 87078 325 4.

Immanuel Wallerstein, Geopolitics and Geoculture: Essays on the Changing World‐System (Cambridge: Cambridge University Press, 1991) pp.242. $35.00 ISBN 0 52140604 8.

Daniel Warner, An Ethic of Responsibility in International Relations (Boulder and London: Lynne Rienner, 1991) pp.151. $US30.00 ISBN 1 55S7 266 2.

Political theory and methodology

Norman Barry, Welfare (Milton Keynes: Open University Press, 1990) pp.144. $24.95 ISBN 0 335 15595 2.

Peter Beilbarz, Labour's Utopias: Bolshevism, Fabianism, Social Democracy (London and New York: Routledge, 1992) pp.168. $49.95 ISBN 0 415 06616 6.

Sebastian de Grazia, Machiavelli in Hell (London: Harvester Wheatsheaf, 1989) pp.497. $n.p. ISBN 0 7450 0634 5.

Terry Eagleton, Ideology: An Introduction (London: Verso, 1991) pp.242. $29.95 ISBN 0 86091 538 7.

Ellen Frankel Paul, Fred D. Miller Jr., and Jeffrey Paul (eds), Ethics, Politics, and Human Nature (Oxford: Basil Blackwell, 1991), pp.191. $39.95 ISBN 0 631 17885 6.

Barry Hindess, Choice, Rationality, and Social Theory (London: Unwin Hyman, 1988) pp.132. $70.00 ISBN 0 04 301306 6.

A. Khoshkish, Power or Authority? The Entelechy of Power (Lanham: University Press of America, 1991) pp.128. $n.p. ISBN 0 8191 8395 4.

Frank Lewins, Social Science Methodology: A Brief but Critical Introduction (South Melbourne: Macmillan, 1992) pp.110. $14.95 ISBN 0 7329 1331 4.

David Miller (ed.), assisted by Janet Coleman, William Connolly and Alan Ryan, The Blackwell Encyclopaedia of Political Thought (Oxford: Basil Blackwell, 1991) pp.570. $39.95 ISBN 0 631 17944 5.

Raymond Plant, Modern Political Thought (Oxford: Basil Blackwell, 1991) pp.398. $34.95 ISBN 0 631 14224 X.

Alan Udoff, Leo Strauss's Thought: Towards a Critical Engagement (Boulder and London: Lynne Rienner, 1991) pp.327. $n.p. ISBN 1 55587 232 8.