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.     

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).     

The consequences of nationalism: A scholarly exchange

The main thrust of the scholarship on nationalism has so far been concerned with its origins. But nationalism also has effects. Whether it underpins the nation-building efforts of states, is mobilised by counter-state forces or is used in everyday life, nationalism might implicate a wide range of substantive outcomes, including political regimes, public goods provision, citizenship and immigration laws, and different patterns of conflict. Yet—with a few notable exceptions—the consequences of nationalism have received significantly less scholarly attention. In response, the aim of this Exchange is to create a new dialogue between different strands of scholarship around what we know and do not know about the consequences of nationalism. We organise this Exchange around the following questions: (1) What is nationalism? (2) How can we measure nationalism? (3) What are the consequences of nationalism? (4) What are new research frontiers?     

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.