TRANSPORTATION RATES AND LOCATION OF THE FIRM: A COMPARATIVE STATIC ANALYSIS*

ABSTRACT This paper examines the role of the structure of transportation rates in the Weber-Moses triangle model. It shows that, in Zeigler's analysis, the appearance of the price elasticities of demand for inputs actually vanish by a simple application of the envelope theorem. Applying comparative statics analysis, we show when transportation rates are a function of quantity and distance, the assumptions that the production function is homogeneous of degree one and the transportation rates elasticities with respect to quantity and distance are constant are not sufficient to insure that the optimum location is independent of the level of output. This result is significantly different from that obtained by either Miller and Jensen or Zeigler.     

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.     

REVIEW

Society and the Dance: The Social Anthropology of Process and Performance. Edited by Paul Spencer. Cambridge: Cambridge University Press. 1985. Pp. x + 214. Price: $A22.00 (paperback), $A66.50 (hardback).     

TOTAL FACTOR PRODUCTIVITY GROWTH IN MANUFACTURING FURTHER EVIDENCE FROM THE STATES*

In this paper, we first develop a measure of total factor productivity (TFP) growth and summarize a source-of-growth analysis for the manufacturing sector of 48 states. As have others, we find little association between TFP growth differentials and output growth differentials for census regions. At the staterather than the regional level, however, we find a positive association between TFP growth and output growth. We use cross-sectional data to estimate the determinants of the variation in TFP growth. Two results emerge that are important for regional policy and for understanding national productivity trends. First, state investments in education and in transportation infrastructure may affect TFP growth. Second, energy price increases in the early 1970s had no differential effects on productivity growth across states. We also explore the determinants of manufacturing output growth and find that TFP growth, demand growth, wage growth, wage levels, and state corporate income tax rates are significant.