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.     

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.     

Evaluation of Fe isotope values as a provenance tool for chert artefacts from the north-eastern United States

Iron (Fe) isotope compositions of prehistoric stone tools and geological sources were compared to evaluate the robustness of this isotopic fingerprinting technique. Artefacts and source materials were collected from the Hatch site in central Pennsylvania, United States, where both veined chert (Bald Eagle chert) and stone tools coexist within several metres. Yellow artefacts (δ⁵⁶Fe = 0.38 ± 0.1, n = 7) and source materials (δ⁵⁶Fe = 0.42 ± 0.1, n = 8) isotopically matched within error. The source values also overlap yellow chert samples from three other Bald Eagle chert locations in the area. These values are different from six other chert locations in the north-eastern United States. These data suggest that the Fe isotope composition of chert artefacts reflect distinct geological sources. To enhance the mechanical characteristics of the stone tools, the chert experienced heat treatment, which induced a phase shift of the Fe oxide mineral goethite to hematite. This phase shift changes the colour of the chert to red. The red chert artefacts and source material also have overlapping Fe isotope values, but are 0.2‰ higher than the initial yellow chert. Experimental work where cherts were heated with different clays shows that Fe exchange with site soils induces the +0.2 fractionation. These data demonstrate that predictable Fe isotope fractionation occurs during heating, resulting in isotopically distinct artefacts.     

The Interface of Agricultural and Industrial Growth in the Development Process: Some Facets of the Indian Experience

This paper uses national, regional and sub-regional time series and cross-sectional data to show that the direct statistical relationship between agricultural and industrial growth is weaker than would be expected. To explain the gap between theoretical expectations and empirical results, the roles of lagged responses, the terms of trade effect, wage-price movements, initial agricultural productivity, income distribution and some non-agricultural factors as determinants of industrial growth are assessed. Adequate agricultural growth is important for price stabilization policy and has direct welfare implications for poorer segments of the population. Further, an appropriate policy towards non-agricultural determinants of industrial growth is needed in order to maximize the impact of agricultural growth on industrial development.     

The history of the United States cent revealed through copper isotope fractionation

Copper isotope fractionation in United States cents traces changes in the source of copper and identifies historical events. Application of copper isotopes as a geochemical tracer requires consistent isotopic signatures of the ores and refined metals. Overlapping isotopic signatures of crushed ores, chalcocite and refined metal extracted from Morenci, Arizona indicate modern mining processes that produce distinguishable single ore deposit geochemical signatures. The coincidence of copper isotope ratios in metals and ore deposits also exists within the United States cents analyzed here. Specifically, historical records confirm two different sources for copper in cents from 1800 through 1867. The copper isotope composition of the 1828, 1830, 1836, 1838 and 1843 cents coincides with the Cornwall ores of England, and cents post 1850 (1859, 1862) correspond with the Michigan ores of the United States. Three of the thirty-six post 1867 cents measured possess fractionated copper isotope ratios and indicate the change in source of copper for the United States cent.