Book reviews

Theodore G. Th. Pigeaud and P. Voorhoeve. Handschriften aus Indonesien (Bali, Java, und Sumatra), xi, 71 pp., 6 plates. Stuttgart: Franz Steiner Verlag Wiesbaden GmbH, 1985. (Verzeichnis der Orientalischen Handschriften in Deutschland, XXVIII, 2.) DM 64,‐

G. J Knapp, Kruidnagelen en christenen: de Verenigde Oost‐Indische Compagnie en de bevolking van Ambon 1656–1696.xii, 323 pp. Dordrecht: Foris Publications, 1987. (Verhandelingen van het Koninklijk Instituut voor Taal‐, Land ‐en Volkenkunde, 125.) Guilders 35.

Rainer Carle (ed.). Cultures and societies North Sumatra. 514 pp. Berlin; Hamburg: Dietrich Reimer Verlag, 1987. (Veröffentlichungen des Seminars für Indonesische und Südseesprachen der Universität Hamburg, 19.) DM 95.

J. Noorduyn. Bima en Sumbawa: bijdragen tot de geschiedenis van de sultanaten Bima en Sumbawa door A. Ligtvoet en G. P. Rouffaer.xii, 187 pp. Dordrecht: Foris Publications, 1987. (Verhandelingen van net Koninklijk Instituut voor Taal‐, Land‐ en Volkenkunde, 129.) Guilders 30.

Anthony J. Whitten and others. The ecology of Sulawesi. By Anthony J. Whitten, Muslimin Mustafa, Gregory S. Henderson,xxi, 777 pp. Yogyakarta: Gadjah Mada University Press, 1987.

Robert Wessing. The soul of ambiguity: the tiger in Southeast Asia. vi, 148 pp. [Dekalb, Illinois]: Center for Southeast Asian Studies, Northern Illinois University, 1986. (Monograph Series on Southeast Asia, Special Report 24.) (Distributed by Cellar Bookshop, 18090 Wyoming, Detroit, Michigan 48221.)     

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.     

THE EFFECTS OF LOCAL TAXES AND PUBLIC SERVICES ON RESIDENTIAL DEVELOPMENT PATTERNS*

ABSTRACT. This paper incorporates an exogenous taxing and service-providing public sector into a dynamic residential land-use model in order to examine how local-government fiscal policies alter the pace and pattern of residential development. The model is used to derive the comparative-dynamic responses to variations in the income, sales, and property taxes and public-service time paths. The results show how tax and expenditure effects systematically depend upon the anticipated relative growth rates in rents to alternative uses and vary across locations within a given urban area as well as across urban areas themselves.     

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.