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.     

Rethinking State Rail Policy

In the last two decades, many states established rail promotion programs in an effort to limit the contraction of their railroad networks. Now federal funds for rail projects are nearly exhausted, and states must decide whether to expand considerably their levels of internal funding for short line investments. Such a decision requires a careful articulation of policy goals, combined with sound cost-benefit techniques. Research shows, however, that states often fail to evaluate the full range of costs and benefits when considering rail investments. Instead, the economic development benefits of local rail service frequently are overstated, while the potential for rail investments to meet broader transportation planning needs is neglected. This paper evaluates the rationale behind state intervention in the rail industry, discusses the tendency of states to focus on economic development to the exclusion of other benefit categories, and presents summary results from an analysis of an investment project in North Carolina. The paper suggests that state funding for rail projects is more likely to be justified based on intermodal substitution benefits generated by local rail service, rather than the railroads' potential to increase jobs.     

Representing Structural Change in U.S. Migration Patterns

This paper focuses on the identification of three sets of relationships exhibited by a time series of age-specific national migration rates and multiregional transition probability matrices: the relationship across time for the same age group, as defined by period (temporal) transformation coefficients or matrices; the relationships across age at a particular moment in time, as defined by age transformation coefficients or matrices; and the relationships across time and age, as defined by cohort transformation coefficients or matrices. Given any two of these relationships one can solve for the third. This feature of age-period-cohort relationships has a practical application in the development of improved methods for representing structural change in migration patterns over time and for indirectly estimating migration patterns using inadequate data.     

Explaining A Paradox: The Alberta-California Natural Gas Trade Dispute

For over 3 years the Alberta government and the California Public Utilities Commission engaged in a bitter dispute over the future of the Alberta-California natural gas trade. This article examines how both sides sought to use their regulatory authority to control the substance of gas trade restructuring. It assesses the dispute as an exercise in deregulatory policymaking and suggests the need for increased study of the role and motivations of subnational regulatory actors.     

Inward investment and economic development in Poland

This paper summarizes results of a research project funded by the Overseas Development Administration of the UK Government. Its aims were to explore the nature and extent of foreign direct investment in Poland, and to assess the extent of integration of such investment with the indigenous economy. The research involved interviews with Polish government ministries, banks, development agencies, inward investors and indigenous firms. It concludes that there are numerous financial and technical obstacles to indigenous business development. The majority of inward investors aim to serve the Polish and other Central and Eastern European markets rather than simply selling cheaply produced products to the West. Moreover, most have already developed significant local sourcing from Polish suppliers.