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.     

Tin Mining and Sediment Supply to the Ringarooma River,Tasmania, 1875–1979

Tin mining, based largely on alluvial tin deposited along the line of the ancestral Ringarooma, began in 1875 and reached a peak in the period 1905-9. Output declined thereafter and, following a brief recovery during the Second World War, had virtually ceased by 1981. Neither the methods, location nor level of production remained constant during the mining era. The widespread use of hydraulic sluicing and the proximity of many mines to the main river were major factors contributing to the high rate of sediment supply, with the Briseis mine at Derby being the dominant source. Based on data from published and unpublished papers, and mine records, the variable nature of that supply was estimated using a procedure which takes account of the effects of storage and changing practices. Many input points supplied material but the overall pattern is one in which downstream reaches made later starts and reached later peaks, suggesting that they will continue to experience the effects of an increased sediment load for some time.     

Port Royal, Jamaica: The archaeological problems and potential

In September 1968, one of the authors (P. Mayes), having been appointed Head of Mission by the British Ministry of Overseas Development to act as advisor to the Jamaica National Trust Commission, made recommendations which formed the basis for the establishment of the Port Royal Project. The Project is concerned with the excavation, conservation and presentation of 17th century Port Royal, which was founded in 1655 and destroyed by an earthquake in 1692 (see Fig. 1). For the purposes of archaeology the area was divided into three: the Archaeological-Historical Reserve, encompassing the protected underwater area and lands currently occupied by government facilities at the west end of Port Royal; the area in the centre of Port Royal which is protected archaeologically by modern housing and the area at the east end of Port Royal in which it was proposed that commercial expansion should be allowed on land held on lease from the Jamaican government. Work began early in 1969 in a section of this last area, which was threatened, at that time, by the construction of an hotel. This area was part of the shoal water section of sunken Port Royal (see below and Fig. 2). Since that date excavation headquarters and conservation laboratories have been established in the old naval hospital and the construction of a major museum, the first phase of the presentation programme, has begun.