Abstracts and Authors  PRSCO17

 17th Pacific Conference
 Regional Science Association International

  Portland, Oregon, USA ~ June 30 – July 4, 2001
 

Sponsored by:  The Pacific Regional Science Conference Organization


Hosted by:  The Western Regional Science Association  


40th anniversary  1961-2001


Abstracts are arranged alphabetically by last (family) name of papers' first authors.

Click on a letter to skip down in the file to find a paper by a particular author:

A | B | C | D | E | F | G | H | I| J | K | L | M | N | O | P | R | S | T | U | V | W | Y | Z



Regional Input-Output Analysis of Energy and Resources Demand in Japanese Regions
Hirofumi Abe    Okayama University
Mamoru Taniguchi   Okayama University
Takuya Nakagawa    Okayama University

Under the growing awareness of the global environmental issues, the Japanese Government has been enacting various laws for energy saving and material recycling to promote the formation of environment-friendly society.  The input-output analysis is a useful tool to examine economic structural problems concerning the economic growth, the industrial structure and the environment. Several researches have been conducted to identify the efficiency of resources and energy consumption of Japanese industries using input-output analysis. However, we have few researches on the relationship between the industrial structure and the resources and energy consumption in Japanese regions.  The aim of this paper is to identify the trends in the industrial structure and the consumption of resources and energy in Japanese regions using interregional input-output tables for the period 1975-1990. The relationships between the industrial structure and the efficiency of resources and energy consumption in Japanese regions are examined by calculating various coefficients and analytical methods on regional economic linkage; the induction coefficients for resources and energy supply sectors; the resources and energy induction coefficients; the interregional input-output analysis.

The analysis of induction coefficients for resources and energy supply sectors for eight Japanese regions has revealed the efficient use of oil and coal materials had been achieved during 1975-1990. However, the other sectors, such as the mining, the electricity and the gas and water supply had not made much progress.  The reduction of resources and energy induction coefficients in terms of input structure factors (i.e. technological improvements) and the structure of final demand had been proceeded throughout the study period. However, the efficiency deteriorated in a few regions and industrial sectors under the economic growth during the bubble economy period.  The feedback effects for resources and energy supply sectors using interregional input-output model had been weakened in tertiary sector, whereas strengthened in the manufacturing industries in the eastern part of Japan. The regional disparities in terms of feedback effects for resources and energy supply sectors had been reduced in both manufacturing and tertiary sectors.



New Approaches To Regional Development: The Southeastern Anatolia Project (GAP) In Turkey
Bulent Acma    Anadolu University

The Southeastern Anatolia Project (GAP), which is one of the most important development project in the world, is a popular subject in both Turkey and  especially in Southeastern Anatolia Region. Because of being underdeveloped region and of having unvalued rich sources, The importance of the GAP Project is getting more and more important.

In this study, the region of Southeastern Anatolia and the GAP Project will be introduced in brief, and the stages of the project and the results will be discussed. Furthermore, some aspects of the GAP Project that has been reevaluated under the concept of sustainability in recent years will be examined.

In the first section, the chronological(historical) development of the GAP Project and its stages will be held. In the second section; as a regional development project, the GAP Project will be examined within a frame of sustainability.
In this study, by estimating the possible results of the GAP Project, the contributions of the project to country’s and region’s social aspects and economic case will be brought out.



An Introduction to the Relocation Project of the Manufacturing Factories in the Inner Areas of Metropolises of Japan: the Case of Tokyo Metropolitan City
Mitsuko Akaike    Building Research Institute, Ministry of Land, Infrastructure and Transport

Many manufacturing factories of small or middle size are located in the inner areas of metropolises in Japan. They have contributed to the economic growth of Japan after World War II, but also caused heavy environmental pollution. Thus it was considered that manufacturing factories and houses should be located separately in different areas.  The project to congregate several manufacturing factories into a building or relocate them to a properly chosen area like an industrial park was started by the government to resolve this problem.
In this paper the content and the procedures of this project will be described briefly first, and then the present state of the result is will de discussed by using related statistical data. Finally, the result of investigation of reactions of related factories by questionnaire will be shown to clarify the possible usefulness of this type of project in the future.



A Study on the Image Analysis of Hitoh
Ryuichi Akatani    Iwate University
Akira Ando     Iwate University
Yoshihiro Sasaki    Iwate University

In our country where the hot spring which reaches 519 places (the national about 22% at present, March, 1993) in the inside in Tohoku district gushes, in Japan, the spa of the 2357 place exists in the whole, and there are many humans who visit the spa from the distance for tourism and recreation, and according to the travel dynamic phase investigation, purpose and frequency also always occupy the epitasis.

The language of “Hitoh” would be often made to be an ear. In search of Ando sensation and peace of mind sensation, that the people who desire that it visits the small-scale spa in the minority of doing how family individual friend, and contacts the grandeur nature and that it observes it and interchanges with people of knowing land increase seems to be in the background.

What will be the essence of the attractiveness of stopping “Hitoh”  by attracting people in the place like this? Then, what will do affect decision making and sightseeing action of the tourist.

Boulding, K.E. has the image in which the individual (or, group) is respectively original for the externality as a fundamental premise in examining decision-making and action of the human. Then, there is him alone of the researcher decision making human action this clear first, and human and recent decision making and research on human behavior will be able to be called promoting assuming such recognition. Therefore, whether the tourist has the image for what kind of “ Hitoh “ must be examined first of all, when decision making and sightseeing action of the tourist actually are examined.

The research of the image for Hitoh is little in spite of having the importance of deciding the spa generality fundamental amenity.  And, it is regarded as a big thing for the today when the attention has been turned to Hitoh and this study, when it is expected as a basic research on the amenity of Hitoh.

In this study, from the result which photographs from 3 magazines on Hitoh and authors directly, etc. photographed by field survey as research object, by examining five of degree known to the general public, situation of the nationwide distribution, geographic and geomorphological condition, variety of season sense, scale of the facilities facility, 13 spas (landscape slide 15 sheets) were selected.

In this study, "field" was constructed and was made temporarily for Hitoh under Soft-tourism and concept of the hospitality, and by applying the psychological technique in this, it was made that it was objective context system image and perceptual image of Hitoh and that is quantitative and uniformly evaluate it to be a purpose.



Regional Income Inequality in China: A Two-Stage Nested Inequality Decomposition Analysis
Takahiro Akita    International University of Japan and
Kazumi Kawamura   Economic Research Institute for Northeast Asia

The main objectives of this paper are to estimate regional income inequality in China during 1995-1998 by a Theil index and to analyze factors of regional income inequality. Most of previous studies employed provincial GDP and population data to measure regional income inequality in China, and thus failed to analyze income inequality within provinces. This study uses district-level GDP and population data to estimate regional income inequality, rather than provincial GDP and population data, and thus can analyze not only between-province but also within-province inequalities. This study investigates factors of regional income inequality in China by the two-stage nested inequality decomposition method, which was developed by Akita (2000). The two-stage nested inequality decomposition method is analogous to a two-stage nested design in the analysis of variance (ANOVA), and decomposes the overall regional inequality, as measured by a Theil index based on district-level GDP and population data, into three components: the between-region, between-province, and within-province inequality components. Therefore, the method can analyze the contribution of within-province inequalities as well as between-province and between-region inequalities to the overall regional income inequality in a coherent framework. The district-level GDP and population data are obtained from Province and City Database in China (Soken in collaboration with China's Central Bureau of Statistics, various issues). In a two-stage nested inequality decomposition analysis, China is divided into four regions: Western Region, Central Region, Eastern Region, and Northeastern Region. Western Region includes Sichuan, Guizhou, Yunnan, Shaanxi, Gansu, Ningxia, Tibet, Qinghai, and Xinjian. Central Region includes Jiangxi, Shanxi, Anhui, Henan, Hunan, and Hubei. Eastern Region includes Fujian, Guangdong, Guangxi, Hainan, Zhejian, Jiangsu, Shanghai, Shandon, Hebei, Beijing, and Tianjin. Finally, Northeastern Region includes Heilongjiang, Jilin, Liaoning, and Neimonggu (Inner Mongolia). This study will show that there exists a large within-province inequality in some provinces.



Arsenic Contamination in Groundwater in Bangladesh: Some Thoughts Regarding the Best Possible Way to Supply Safe Water, with Special Reference to Three Villages in Meherpur District
Wardatul Akmam    University of Tsukuba
Yoshiro Higano    University of Tsukuba

Arsenic contamination in ground water has become an issue of life and death for more than 80 million people in Bangladesh.  After about 25 years of relentless efforts, the government of Bangladesh, the UNICEF, the World Bank and other organizations were able to develop the culture of drinking tube well water among people in order to avert the dangers of water borne diseases, such as diarrhea and cholera. When these tube wells were installed, they were not tested for arsenic. During the mid 1990's, it was discovered after diagnosing patients of arsenicosis that water of tube wells contained arsenic beyond the permissible level of .05mg/liter. Till now only about 2.61% of the 12 million tube wells in Bangladesh have been tested and the results show that more than 50% of the tube wells in 61 out of 64 districts contain more than .05 mg of arsenic per liter of water.

Arsenic is a known carcinogen (an element which produces cancer).  For the people who drink arsenic contaminated water for 5 to 10 years, there is 85 percent risk that 10 % of them would be attacked by cancer. Besides, there are other diseases, such as melanosis, leuco-melanosis, keratosis, ulcer and gangrene, which also result from excessive ingestion of arsenic. There are about 10,000 registered arsenicosis patients at present, and hundreds of such patients have already died. Unfortunately, there is no cure to the diseases caused by arsenic. Therefore, something must be done immediately to provide safe water to the affected people.

There is a debate among scientists regarding the cause of the problem. According to one hypothesis, arsenic is released into the ground water as a result of over-extraction of ground water for irrigation. Another hypothesis regards the problem as a natural and geological one. Because of differences of opinion among scientists on the cause of the problem, the solution to the problem has become more difficult.

Among the different options, we have deep tube well, rainwater harvesting, surface water purification, dug well, and filtering of arsenic contaminated tube well water. All these have their relative merits and demerits and a single solution is not likely to be effective and optimum in all areas. In this paper, we mainly reflect on three badly affected villages of Meherpur district (Dholmari, Taranagar and Bagoan). We have found out from the people that nothing has been done in these villages to provide safe water. We have conducted sample surveys in these villages, which show the actual condition of the people. We discuss in this paper, the physical and geographical situation in our study area and try to identify the most appropriate solution to the problem.

As we proceed with our research, we hope to develop a model and run relevant data through simulation to find out an optimum solution for Dholmari, Taranagar and Bagoan.



Cross-Border Impacts of Growth Management Controls: The Case of Portland, Oregon, and Clark County, Washington
Chang-Hee Christine Bae   University of Washington

Portland's Urban Boundary has been in place for more than 20 years.  For at least one half of that period, one county in the metropolitan region (Clark County, Washington) escaped the growth management regime.  As a result, it grew rapidly.  In 1990, however, Washington's Growth Management Act (GMA) was passed, although it took years for its impact to be felt in many parts of the State.  This paper asks the question: did the passage of the GMA and its aftermath make a difference to what was happening in the Portland metropolitan region, especially with regard to growth in Clark County?  The paper will examine population and employment trends in the region in the 1970s, the 1980s and the 1990s.  It will also examine how real estate prices in Clark County have diverged from those in the rest of the Portland area.  Finally, it will explore the extent to which attitudes to growth have changed among the politicians, public officials, and the citizens of Clark County after the passage of the GMA.


Accessibility to Seoul’s New Subway Line 5: The Impact on Residential Property Values, Travel Behavior and Industrial Development
Chang-Hee Christine Bae   University of Washington
Myung-Jin Jun    Chung-Ang University
Hyeon Park     Korea Development Institute

There is considerable controversy about how the opening up of a new rail line impacts the surrounding area.  In the United States, this type of analysis has been limited by the slow pace of transit developments and minimal transit ridership.  The case of Seoul, Korea, offers a counterexample where subway lines account for 30 percent of commuting trips within Seoul (with buses counting for another 30 percent).  In the late 1990s a new 52.3 kilometer subway line was built (Line #5: the longest line in Seoul carrying 570,000 persons per day with 51 stations), running across the middle of Seoul on an East-West axis.  This paper attempts to analyze how proximity to a subway station on the new line affected residential property values.

It explores this by using the well-know hedonic pricing regression model that standardizes for location, structure and neighborhood effects.  Impact areas were classified into three groups: major impact areas (within 200 meters from the station), minor impact areas (500-1,000 meters) and secondary impact areas (500-1,000 meters).  The real estate data are from Budongsan Bank (Real Estate databank) and the travel data are from the Seoul Development Institute.  Impacts were compared prior to construction, during construction and after completion.  The study finds that right at the opening of the subway, there was a significant spike in real estate values within a half-kilometer distance from a new subway station.  Three years after completion, the impact was much more muted (this was during Korea's financial crisis), but these sites nevertheless fared much better than the rest of Seoul.  Other effects include impacts on modal split and a stimulus to industrial development.



Analysis on Effects of City Development Project through the Observation of Local Finance
Michiko Banba    Ritsumeikan University

Recently, the effective and efficient use of local finance has become more important with the economic problems that have become serious.  At the same time, further development of infrastructure is needed.  This study aims at the development of a tool to provide local government with the useful data to consider and decide the implementation of the city development projects.  In this study, effects of city development projects on economic and social activities in the region are analyzed through the observation of the state of municipal finance.  Regional economy and social model which expresses the related structure among local government which operates the projects, private companies, and local residents is constructed.  City development projects which reflects local government policies are simulated using the model, and the state of local finance is observed as it is important to maintain sound finance.  These simulation results are compared and effects of city development projects are analyzed.



The European Regional Convergence Process, 1980-1995: Do Spatial Regimes and Spatial Dependence Matter?
Catherine Baumont   University of Burgundy
Cem Ertur     University of Burgundy
Julie Le Gallo    University of Burgundy

The aim of this paper is to show that spatial dependence and spatial heterogeneity really matter in the estimation of the b-convergence process on a sample of 138 European regions over the 1980-1995 period. In front of the well-known theoretical inadequacy and econometric problems faced by the standard b-convergence model, we improve it on both aspects. First, from the econometric point of view, using the appropriate spatial econometric tools, we detect spatial autocorrelation and overcome the problem by estimating the appropriate spatial error model that can be interpreted as a minimal conditional b-convergence model. Concerning spatial heterogeneity, it appears that the problem is essentially due to structural instability in the form of spatial regimes. Two spatial regimes, interpreted as spatial convergence clubs, are defined using Exploratory Spatial Data Analysis (ESDA) and are constituted by rich regions surrounded by rich regions (North regime) and poor regions surrounded by poor regions (South regime). We therefore take into account spatial autocorrelation in conjunction with structural instability. The estimation of the appropriate spatial regimes spatial error model shows us that indeed the convergence process is different across regimes. Furthermore it appears that actually there is no such a process for northern regions, but only a weak one for southern regions. Second, from the economic point of view, the use of spatial econometric tools helps us to integrate new results of economic geography, leading to the estimation of a spatial spillover effect in the framework of spatial convergence clubs. This effect appears to be strongly significant indicating that the mean growth rate of per capita GDP of a given region is positively affected by the mean growth rate of neighboring regions. Furthermore, with this model, a random shock affecting a given region propagates to all the region of the sample. Two simulation experiments, based on a southern region and on a northern region, illustrate this effect. Key words: b-convergence, spatial econometrics, spatial dependence, spatial regimes, geographic spillovers.



On the Geography of the New Economy: A First Look at Regional Trends in Employment
William B. Beyers    University of Washington

The U.S. Economics Statistics Administration (ESA)  has recently defined industries considered to be central to the development of the New Economy.  These include both IT-Using and IT-Producing sectors.  This paper documents at the level of states in the United States for the 1990’s the pattern of employment change in these key sectors, and it contextualizes their trend with overall employment change.  The leading role of these activities in national job growth and GNP growth has been emphasized by the ESA, but the geography of this growth has not been documented.  The paper begins by developing the concept of the New Economy, contrasting it with other visions of sectoral-groups of industries used by regional scientists in recent years.  Descriptive statistics will evaluate whether regions with strong concentrations of New Economy industries have outperformed regions with weaker concentrations in these industries.



Décentralisation / Déconcentration of Administration and Center / Periphery in France
Bernard Bizet    ESSEC Business School of Paris

The French government is currently in a period of ambivalence about the management of the national territory: on the one hand, the concept of centralized state power is still strong (center policy?), while on the other hand there has been a rigorous effort, dating from the 80s, to decentralize and redistribute authority (periphery policy?), which effort has meant a significant change in the perception and exercise of power.
Décentralisation vs or and déconcentration
a - décentralisation (decentralization is the transfer of powers and authority from the central government to provincial governing bodies) and
b -déconcentration : the centrally located authorities and entities are re-located to government structures in the provinces, physically "deconcentrating" the center.

After nearly twenty years of decentralization procedures it seems possible to validate the whole development of the decentralization/deconcentration process through positive points such as:
- there is an effective link between the goal of management for territory of the whole country and a precise body of decisions made to ensure the relocation of public services in Province,
- new State services are developed with the aim to provide better services in closer proximity to the user everywhere on the territory,
- new administrative means are implemented outside of Paris with success,
- the geographical distance has a clear influence upon the functioning and the management of the “exterior services” and the deconcentration process of public adminsitration.

However, some analysts claim that they can now observe a process of “re-centralization” underway, as evidenced by the following:
- firstly, the State has reduced or suppressed local taxation and replaced it by compensations. This has allowed it to control a large part of the local resources, even at the cost of a strong budgetary effort,
- secondly, the State does not take into account the fact that the increase of the transfers to the local collectivities results from its decision to replace fiscal resources by budgetary subsidies. The State should actually be emphasizing this attitude, as its real final objective would be to reduce local expenditures.

This is criticized by the local authorities as contrary to the notion of “partnership” which sustains the decentralization and deconcentration policies.  As it can be easily surmised, today this issue is at the center of the debate in France.



The Health Benefits of Urban Design
Marlon G. Boarnet    University of California, Irvine
Michael Greenwald   University of California, Irvine
Tracy McMillan    University of California, Irvine

For the past decade, planners, policy analysts, and architects have debated the merits of the New Urbanism.  The idea that urban design can be used to solve transportation problems has been prominent in those debates.  At the same time, the growing movement for improved quality of life has been tied to transportation projects that, by supporting alternatives to the automobile, purportedly will improve the livability of urban and suburban neighborhoods.  In this paper we test one route through which urban design can contribute to higher quality of life.  Specifically, we test the link between urban design, including the New Urbanism, and health benefits.  By matching travel diary data from Portland, Oregon with detailed information on neighborhood land use patterns, street grid patterns, and a measure of local pedestrian environments, we test whether urban design influences individuals’ propensity to walk.  This test is implemented using both the number of walking trips and the total distance traveled on foot as the dependent variables.  Past research (Boarnet and Greenwald, 2000; Greenwald and Boarnet, 2001) has shown that urban design variables are more robustly associated with walking trip generation than with automobile trip generation.  We then examine the magnitude of any statistically significant links between neighborhood design variables and walking behavior, including simulations that give evidence on likely changes in walking for different changes in neighborhood design.  Using that information, and drawing from the literature on the health benefits of moderate physical activity, we quantify the health benefits of changes in different urban design variables.  We also examine the link between neighborhood design and walking for different sub-groups who likely depend more heavily on foot travel, including children, and again calculate the health benefits for those groups.  Both planning rhetoric and recent statistical evidence suggests that urban design has a stronger impact on walking than on driving behavior.  By examining the potential health impact of such a link, we assess part of the potential for urban design to provide quality-of-life benefits.



Income Segregation and Access to Labor Markets
Dominique Bouf    University of Lyon

This paper deals with French income segregation and the consequences on access to the jobs. The presentation will have two parts.

1. A theoretical framework will be presented. The intuition is that a voluntary segregation can be obtained trough the provision of low rent subsidized housing. The rationale for segregation is, in this model, to improve the expected quality of schools for rich and middle class households supposed to vote for the majority party. But the housing projects were build in the inner suburbs, mainly during the 60s and 70s. With de-industrialization, most of the jobs located in the inner suburbs disappeared. And the new jobs are more and more located in the very center of the cities or in the outer suburbs. Unfortunately, the combination of low rent and supplemental income create a kind of spatial poverty trap, the households being unable or unwilling to move and follow the jobs. Higher unemployment and longer commutes are thus to be expected in the inner suburb housing projects, which become poverty enclaves.

2.  Then empirical evidence will be provided that
a) French cities are pretty segregated according to income, family size and professional status (maps and dissimilarity index)
b) this segregation might lead to jobs access difficulties measured by commuting time and accessibility index.



Validation of an Urban Travel Forecasting Model Combining Origin-Destination, Mode and Route Choices
David Boyce    University of Illinois at Chicago
Hillel Bar-Gera    University of Illinois at Chicago
Biljana Ralevic-Dekic   University of Illinois at Chicago

The validation of a combined model for making detailed urban travel forecasts is described.  The model combines origin-destination, mode and auto route choices into a consistent forecasting method for multiple user classes for the Chicago Region.  Household travel survey data and census data are used to estimate and validate the model.  Finally, the performance of a new method for solving the model is described.



Intermetropolitan and Intrametropolitan Differences in the Utilization of the Mortgage Interest Deduction
Peter Brady     U.S. Department of Treasury
Julie-Anne Cronin    U.S. Department of Treasury
Scott Houser    California State University, Fresno

The value of federal income-tax deductions, such as the home mortgage interest deduction (MID), varies across geographic regions.  Taxpayers in regions with relatively high incomes, state and local income taxes, and housing costs should be more likely to utilize deductions; that is, they should be more likely to itemize, more likely to have a larger deduction conditional on itemizing, and more likely to get a larger tax benefit from their deductions.  If utilization of the MID varies across regions, any income-tax change that alters the MID may have effects that vary spatially. This paper uses 1995 income tax data from Treasury's Statistics of Income files to investigate how MID utilization differs across metropolitan areas and among central cities, suburbs and nonmetro areas.

In previous work, we show that there are substantial differences in utilization of the MID across Census divisions and that differences in utilization are related to differences in income, the level of house prices, the rate and form of state and local taxation, and demographic differences that affect homeownership and the amount of mortgage debt.  About 40 percent of the explained regional variation in itemization is due to regional differences in house prices, and another 20 percent is due to differences in state and local income and property taxes.  About two-thirds of the explained regional variation in the average size of the MID is due to regional differences in housing prices and state and local income and property taxes.

In this paper, we extend our analysis of regional differences in utilization of the MID to examine differences across metropolitan areas.  We examine differences in itemization and in the amount of MID claimed conditional on itemization for the largest metropolitan areas compared to the rest of the nation.  We also examine differences within metropolitan areas by comparing utilization of the MID for taxpayers in central cities, suburbs, and nonmetropolitan areas.  We estimate models of the likelihood of itemization and the amount of MID claimed in order to quantify the effects of regional variation in income, house prices and state and local taxes on the spatial pattern of MID utilization.



Inter-Regional Factors of Indonesian Provincial Economic Growth: An Econometric Inter-Regional Input-Output Approach
Bambang Brodjonegoro   University of Indonesia

Regional income disparity has been a chronic and unsolved problem in the Indonesian economy.  The government has issued many policies and programs to reduce it with no success.  Recently, the central government launched the fiscal decentralization process to help alleviating the problem and most of Indonesians seemed to have high hope on that process.  Aside from the quality of the program itself, the main reason of the problem still remains to be answered.  The government policy makers believed that the uneven distribution of economic activities, especially the ones that were initiated by the government, was the reason but the real reason is much deeper than that.  Any solution of chronic regional disparity in Indonesia has to deal with the regional economic structure.

This paper will use an integrated model of inter-regional input-output and simultaneous econometrics.  The inter-regional input-output data for Indonesia was developed in 1995 for all 27 provinces.  The econometric part was mostly used for estimating the final demand components (consumption, investment etc).  The early output of this integrated model would be the degree of interactions among Indonesian provinces and the results demonstrated how provinces in Jawa island dominated most of outside Jawa provincial economies.  The other output would be whether the fiscal decentralization process will have any impact on reversing the current trend.  It will be very interesting to observe the impacts of new inter-governmental transfer system that allocated more money for outside Jawa provinces.  Many suspect that the current decentralization process will not do any good for outside Jawa provinces for short and medium terms.

Other than analyzing the impact of fiscal decentralization to the regional disparity, the integrated model will also be used to forecast the provincial economic growth by considering the inter-provincial factors.  This experiment will help the regional economists to identify which provinces can grow fast on their own and which ones can only grow with the significant degree of dependency to other provinces.  This information will certainly help the government policy makers in defining their regional development strategy.



Estimating the Income Elasticity of Local Government Revenues and Expenditures in the Philippines under Decentralization
Joseph J. Capuno    University of the Philippines-Diliman

A common feature of the different policy initiatives currently undertaken or considered in the Philippines to improve its decentralization program is a proposal to amend the current formula used in allocating the national government’s internal revenues. This formula is known as the Internal Revenue Allotment (IRA) formula, which determines the principal revenue share of local governments in the country’s total fiscal resources and as well as the allocation of the total share among the different levels and types of local governments. As an input to policy discussions, this paper seeks to measure the responsiveness of the revenues and expenditures of local government units to changes in the IRA. To measure local fiscal response to IRA changes, the income elasticity of the revenues from local sources and total expenditures of provinces and cities are econometrically estimated using local fiscal data covering the period 1990-96. The results show that revenues from local sources and total expenditures of either the provinces or cities are generally income elastic. That is, the increments in the IRA under decentralization do not seem to substitute for local revenues and have likewise stimulated greater local public spending. The results then suggest that local governments, despite initial apprehensions concerning their seemingly increased dependence on central transfers, have nonetheless learned to adjust positively to their new roles and responsibilities under the program. However, the results also indicate that current policy reforms must also focus on improving fiscal imbalances, since local governments respond differently, albeit all positively, to the changes in their IRA shares under the decentralization program.



Public Service Expenditures: The Influence of Density and Other Characteristics of Urban Development
John I. Carruthers    University of Washington

Over the last several decades, there has been a sustained interest in measuring the relative costs of alternative forms of development in United States metropolitan areas (RERC 1974; Frank 1989; Burchell et al. 1998). Throughout, a major emphasis has been on the question of whether or not urban sprawl--low density, discontinuous, suburban-style development, often characterized as the result of rapid, unplanned, and/or uncoordinated growth (Nelson et al. 1995)--undermines the cost-effective and equitable provision of urban services. This issue is important because, unlike more normative criticisms of sprawl, it provides a practical point of departure for debates over the role that governments should play in regulating the outcome of urban growth. In particular, the high service costs allegedly incurred through far-flung development patterns serve as a key source of leverage for urban planners and others advocating the use of growth management and "smart growth" programs to promote more compact urban areas (see for example Ewing 1997). But despite claims that land use regulation is necessary to maintain efficient service provision, the supporting evidence remains thin and inconclusive. How does the character of urban development affect the cost of services? And what does this imply for land use planning and growth management efforts administered in the name of economic efficiency?   This paper responds to these questions by examining the influence that density, the spatial extent of urbanized land area, and property value have on seven measures of public expenditure: total direct costs, highways, roads and other transportation, police protection, parks, sewerage, and education. The objectives of the analysis are threefold. First, the background discussion provides a brief overview of previous research examining the relationship between urban development patterns and the cost of public services. Second, drawing on an econometric model developed in previous research (Carruthers and Ulfarsson 2000), the empirical analysis examines the relationship between the character of urban development and per capita public outlays in a cross section of 283 metropolitan counties during the 1982 - 1992 time period. Density, urbanized land area, property value, and spending are modeled in a simultaneous equations framework, using a separate model for each of the seven measures of expenditure. Third, the results of the empirical analysis, including elasticities calculated from parameter estimates, are used to develop a set of policy recommendations that may inform planning efforts seeking to influence the expense and equity of urban service provision. These recommendations suggest that, while there is little to be gained from policies that limit population growth outright, policies that increase urban densities may yield significant savings over time.



Property-led Urban Renewal in Taiwan: Panacea or Titanic?
Li-Li Chang     Chinese Culture University, Taiwan

In Taiwan, by using bonus of floor areas as incentive, the property-led urban renewal mechanism can’t guarantee to achieve the purpose of urban renewal policy.  It is because the developers only consider the maximum profit of the project, but not care that bonus will increase the environmental burden of public service.  Profit-oriented renewal program is easy to be executed in buoyant area, but different in deflect area.  In depth, it excludes the social aspect of human resource development.  Thus, such a program cannot achieve the all-round intention of urban renewal.  The purpose of urban renewal not only emphasizes the improvement of physical residential and business environment, but also considers the elevation of local employment and skilled labor resources, which may make local business revival spontaneously.  In the meantime, the improvement of investment environment could attract a great deal of investment, create spillover effects, and raise the entire quality of environment.

The paper is to discuss how the property-led renewal programs impact on the urban growth.  Therefore, first, based on the related researches, urban renewal involves various considerations such as physical improvement, economic growth and social welfare.  Second, I’ll explore debates on how property-led renewal programs influence on local growth.  Third, I introduce the mechanism of bonus of floor areas as incentive under Taiwan’s “urban renewal law”.  Forth, I’ll discuss the factors influencing real estate developers’ decisions on investing redevelopment.  Finally, I’ll discuss the problems of some redevelopment cases in Taipei.  Further, I’ll respond to Taiwan’s existing incentive mechanism of urban renewal policy.



Formation of an Internet Market Channel in Taiwan – SP, ICP, ASP and Portal Cooperating Relationship in the Future
Chie-bein Chen    Chuan University
Chin-tsai Lin    Yuanpei Institute of Science and Technology
Wenny Kao     Ming Chuan University

Since the recent change in telecom policy in Taiwan, the Internet market channel – Portal should face a severely competitive business environment.  This research focuses on how to construct an appropriate business model.  Resource applications and the complementary advantages of ISP, ICP and ASP are the main factors in a business merger.  Based on previous literature and research results, this paper uses questionnaires and visiting surveys to investigate the intention behind and the factors considered by different types of ISP, ICP and ASP when they decide to merge, amalgamate or strategically ally to win in the severely competitive environment.



Removal of Development Caps: Who Will Benefit from Deregulation of Industrial Growth Controls?
Cheol-Joo Cho    Chongju University

A number of governments have long used a variety of approaches to regulate development. Development caps, which are designed to reduce the amount of growth permitted, have been employed as a means of controlling urban growth. A wide array if development caps are in use: population caps, square footage or housing unit caps, or annual permit caps.

However, imposing the limitation to the amount of development permission has been criticized as it should lead to increases in land values and thus suppress economic growth. Then, governments tend to respond to the criticism by removing or mitigating the limitations to growth.
This paper will evaluate the potential impact of a removal of annual permit caps in industrial development on the distribution of policy benefits. The demolition of industrial development caps is aimed at creating incentives for businesses to locate and expand within urban areas. On implementing the deregulation policy, it is expected that the policy benefits generated by deregulation of growth caps remain to businesses.
If the capitalization effects were prevalent, the benefits would diverge to landowners. Then, the policy merely contrives rents in the interest of landowners rather than promotes economic development in the interest of the community.



Is Seoul a Post-Industrial City?
Geun Hee Choi    University of Seoul

Urban Functions are concentrated in the CBD at the early state of development, but continuing urban growth would result in the decentralization of the functions.  The decentralization level and spatial structural changes over space are different from a city to a city.  This would be due to the level of governmental intervention.

The government has impacted on the development of Seoul, via implementing various urban development policies.  Market mechanism would have partially played on urban growth and the formation of urban structure in Seoul.

Rapid industrialization caused massive immigration into Seoul from the rural areas during the period, 1960s 1980s.  Urban development and industrialization dramatically changed the urban structure, making Seoul the world class mega-city it is today.  However, the Seoul Metropolitan Government (SMG) could not have produced sufficient urban services needed by the quickly growing population.  In response to this problem, the SMG planned to decentralize urban functions into key locations (sub-CBDs) in the outskirts of Seoul.  Although those plans for making a multicentric city were not successfully implemented because of inconsistencies, they played an essential role in the change of urban structure of Seoul.

The purpose of my paper is to investigate the changes of spatial structure and the impacts of urban development policies implemented in Seoul.  The research tries to find out whether or not Seoul has become a post-industrial city.



Diffusion of Internet and Its Impact on Human Spatial Behavior: A Case Study of a Small Village in the Remote Area of Korea
Sungjae Choo    Kyung Hee University

This paper aims to provide an empirical case study of how the development of information technology affects human spatial behavior, mainly by analyzing the results of a survey to the residents of a small village in Korea. This village located near the city of Weonju, a remote area from national or regional centers, has been recently designated as a 'model of informatized village' by the provincial government and given supports for information infrastructure. It is reported that after designation the village residents use internet, e-mails and their own home page in the exchange of information.

The survey mainly intends to reveal what level of information use they are making and hoe use of networked computer changes their spatial behavior. Some demographic and socio-economic characteristics of the residents will be used as control variables. All these survey results will help us understand both the capability and limitations of information technology to change human spatial behavior, e.g. replace physical movement.



An Outline of Kamchatka Social, Aboriginal and Scientific Life During the Past 10 Years
Victoria Churikova   Russia

This paper will start with a short history of Kamchatka since Russian invasion more than 300 years ago, and of the historical bridges between peoples of both continents, up to the rising of iron curtain in 1990 after which a new Beringia bridge was established with a group of americans led by Russian journalist Vasoly Peskov.  Positive and negative sides of this history will be discussed as well as social aspects.  Other issues to be presented are: traditions and innovations in the life of aboriginal people of Kamchatka during the last 10 years; the role of the young generation in studying language and traditions; nature protection in general and protected territories of aboriginal peoples; different aspects of the research work in Kamchatka; sciences for communities; environmental education; future possibilities.



Alternative Futures for Transportation and Land Use – Comparison of Transportation and Land Use Using an Integrated Transportation and Land Use Model (METROSCOPE)
Sonny Conder    Metro, Portland
Keith Lawton    Metro, Portland

Since completing a "trend-Delphi" based regional forecast and transportation plan in 1996, Metro has developed an integrated transportation and land use model (Metroscope).  We are presently using the model to explore several regional growth management options as well as to produce a new regional forecast and transportation plan.  Comparing our Metroscope results to our previous forecast reveals that Integrated Transportation and Land Use Models may produce dramatically different results in regard to location of employment and households, levels of per capita VMT, traffic congestion, and mode and route choice.  Integrated models robustly respond to alternative land regulation and transportation investment scenarios; providing an opportunity to evaluate the regional impacts of various transportation investment and land regulation options.  Moreover, the integrated models provide additional benefits in terms of far more data on such factors as real estate prices, tenure choice, land consumption, redevelopment, density and demographic distributions.



Electronic Commerce: Planning for Digital Opportunities
Kenneth E. Corey    Michigan State University

Electronic commerce (e-commerce) can be useful in planning for digital opportunity among a range of actors at organizational, local, urban and regional scales.  The e-commerce roles that these local and regional actors can play may be in the profit, governmental and non-profit sectors.
The premise of the presentation is that e-commerce is an important force and tool that can be used by leaders to advance local and regional economic development in an era of globalization.  The paper is presented in the form of a practical guide, for local, urban and regional development actors to consider and tailor to their own unique economic, social and cultural environments.

The guide is organized according to a framework composed of e-commerce planning elements, including spatial organization, and related recent investment and finance changes.  Regional economic development planners may use the e-commerce guide to address technology disparities or the digital divide.

This e-commerce planning framework initially was derived from empirical analyses of information and communication technologies (ICT) policy outcomes in Southeast Asia.  Additionally, the substance of the framework was constructed from content analyses of recent electronic and print media on futures trends of e-commerce in particular and ICT in general.

Each of the e-commerce planning elements is elaborated and offered for strategic and planned application by local, urban and regional development actors.  These explications stimulate conclusions that include the following generalizations.  In seeking to harness the potential of e-commerce, urban areas and regions around the globe have a unique advantage; they are local.  Local leaders and actors know their people, the local economy, local society, and the local culture.  Consequently, in an era of globalization and concerns over homogenization of local cultures through music, movies and television, local area leaders need to know what they want by way of e-commerce, and to pursue it strategically and planfully.  Tailoring the lessons of the e-commerce guide to localities’ visions is the challenge of planners to realizing planned and successful e-commerce and ICT-based development for the future.



International Trade and Specialization in a Global framework: A Regional Integration Perspective
Andreas P. Cornett    University of Southern Denmark

Regional Economic Integration has become a part of the international economic order not only in Europe, but also in most parts of the world. The purpose of this project is to investigate the impact of changes in the organizational and regulative framework for international trade on the patterns of trade and the flow of commodities between various regions of the world, i.e. Europe, South East Asia and the Americas.
The first part of the paper deals with the discussion of various concepts of regionalization, mainly focusing on geographical-based concepts versus organizational frameworks, classified according to a taxonomy of regional economic associations. Based on an institutional approach the regimes of NAFTA, the EU and the AFTA proposal is examined with regard to the overall framework established according to the WTO-agreements.

Trade flows within and between regions, defined according to geographical and economic political criterions, are analyzed in the second part of the study. Special attention is given to inter- and intra-regional flows, and the composition of trade by commodities, within and between the trading blocs considered.

The central question of research is how and to what extent changes in the trade regime influences the direction and composition of commodity trade. The working hypothesis is that the composition of trade flows is mainly determined by the development of and change in the international system of production, i.e. changes in the international division of labor and the patterns of specialization in the production system. Regarding the size - and to some extent the relative distribution and direction of the flow differences in economic activity - in casu prosperity and growth - seems to be of crucial importance.

In particular with respect to the former (integration and changes in the system of production), the altering of the regulatory systems - global as well as regional - plays a major role as a kind of gatekeeper between the economies involved. This is particularly visible in the ongoing process of reintegration of East and Central European countries into the western market economies.

The last part of the paper briefly addresses the questions of the future of the international trade system from a regional point of view.  The main focus is on the issue of complementarity of competition between the global regulatory efforts (WTO) and the various and sometimes very comprehensive regional attempts.



Price and Income Elasticities of Residential Water Demand: Why Empirical Estimates Differ
Jasper M. Dalhuisen   Free University
Raymond J.G.M. Florax   Free University
Henri L.F. de Groot   Free University
Peter Nijkamp    Free University

This paper presents a meta-analysis of variations in price and income elasticities of residential water demand. Information on the determinants of consumer demand is of pivotal importance for the efficiency and efficacy of public and private policy-making. It is also crucial for effective water demand management. We focus on the application of statistical methods to synthesize research results on price and income elasticities of residential water demand reported in the literature. These techniques are generally referred to as meta-analysis. This type of analysis constitutes an adequate tool for explaining why empirical estimates of the price and income elasticity of residential water demand vary to such considerable extents. The set of explanatory factors used in the meta-analysis includes variables derived from microeconomic choice theory and moderator variables reflecting differences in spatial and temporal dynamics, research design, and statistical quality of the estimates of previously published studies.



Manufacturing Services and Servicing Manufacturing: New Forms of Production in Advanced Capitalist Economies
Peter W. Daniels    Birmingham University

If the ‘new economy’ means anything it is perhaps encapsulated by the way in which the organisation of production is changing rapidly.  Significant alterations are occurring in the way that commodities (services and goods) are produced and consumed.  The decade of the 1990s was a period of innovation and revitalisation in economic geography; for some it was the time of the new economic geography and the cultural turn. However, it was also a time when economic geographers began again to explore old concepts in different ways – for example, new industrial spaces – intent on explaining the changing economic landscapes of capitalism.  There is a real danger, however, that for economic geography the first decade of the twenty-first century will be a period of repetition and extension rather than one of development. This paper reviews aspects of an unresolved debate about the distinction between service and manufacturing activities.  It is suggested that it needs to be regularly reconsidered in relation to on-going and important changes in the production process.



Econometric Estimation of Spatial-Dynamic Models in Continuous Time and Space: An Empirical Demonstration
Kieran P. Donaghy    University of Illinois
Maria Plotnikova    University of Illinois

 In the literature of regional science are spatial dynamic models that characterize the behavior of intertemporally and interspatially optimizing economic agents.  These models are formulated in terms of partial-differential equations in both time and space that must be solved subject to boundary conditions.  Recent developments in algorithms have facilitated solution of such models and econometric estimation of their parameters.  In this paper we demonstrate the application of these methodological developments to the solution and estimation of a spatial dynamic models of endogenous growth, accounting explicitly for spatial correlation of measures of economic performance, and report on the small-sample properties of the estimator



Restructuring Japan’s Rust Belt: The Case of Muroran, Hokkaido
David W. Edgington   University of British Columbia

Muroran City (population 125,000) lies on the southern coast of Hokkaido, Japan.  It is a typical "corporate castle town" relying for its economic base on a small number of basic industries such as steel, oil refining, shipbuilding and cement.  The 1970s oil crisis and yen revaluation of the mid-1980s triggered a crisis that plunged Japan's basic industries, especially steel, into a recession.  Along with their demise the future for this once-thriving town looked grim.  In the early 1990s, however, the area re-emerged as an industrial centre as new manufucturing was attracted to the city.  This paper examines the changing fortunes of Muroran over the 1975-2000 period, based upon a number of site visits made in the last 10 years.  Set against contemporary industrial restructuring in Japan, the paper evaluates the actions of the city's major employer (Nippon Steel Corporation), central government ministries and programs of the City of Muroran.  The results show that a combination of private and public sector initiatives were able to largely restore the economy of this regional centre.  The implications of a uniquely 'Japanese approach' to regional planning are discussed.



A Case Study of an Urban Growth Management Strategy: The Tiered (or is it Teared?) Growth Concept
Christopher H. Exline   University of Nevada, Reno

Among the many practices used to manage urban growth is the tiered growth concept.  Utilization of tiered growth as a management tool theoretically allows for such situations as the development of an inventory of lands for which plans are formulated with an eye toward future annexation.  In addition, an assessment can be made of areas with the longer term potential of being placed under the direct influence of a municipality or other governmental agency even though the land sin question are not slated for immediate annexation and are beyond any current political boundaries of the entity in question.  These land uses are only two among the many other possible tiers, or layers, of land use categories that an expanding governmental agency may wish to consider when considering future land use patterns.  This paper presents a ten year longitudinal case study of tiered growth as a management strategy citing the advantages and disadvantages of tiered growth as an urban growth management strategy.



Implications of Spillovers on Research Returns: A Computable General Equilibrium Model Case Study
Eihab M. Fathelrahman   Colorado State University
Dana L. Hoag    Colorado State University
Stephen Davies    Colorado State University

Investments in research in the United States have outperformed average investments for decades.  Nowhere is this more evident than agriculture where returns to investments in research have averaged between 30 and 60 percent.  The government has a significant impact on these returns.  It invests directly and sets the rules that effect returns to the private sector.  In an effort to improve accountability politicians have been changing research agendas toward near-term benefits to their constituents.  This trend threatens to reduce research returns because serving these needs substitutes away from basic research, which has substantially higher returns than applied research.  We construct a computable general equilibrium model of four Great Plains states to examine the complementary and competitive impacts of state control compared to regional control (4-state) of research funding.  In particular, we compute the spill in and spill over of research returns from one state to another.   Our objective is to compute spillovers during the 1990's then develop recommendations about when, where and how regional funding could improve research returns.



Singly Constrained Models of Spatial Interaction: A Novel Class of Product Unit Neural Network Models
Manfred M. Fischer   Vienna University of Economics and Business Administration
Martin Reismann    Vienna University of Economics and Business Administration

Fundamental to regional science is the subject of spatial interaction. GeoComputation – a new research paradigm that represents the convergence of the disciplines of computer science, geographic information science, mathematics and statistics – has brought many scholars back to spatial interaction modeling.

Neural spatial interaction modeling represents a clear break with traditional methods used for explicating spatial interaction. Neural spatial interaction models are termed neural in the sense that they are based on neurocomputing. They are clearly related to conventional unconstrained spatial interaction models of the gravity type, and under commonly met conditions they can be understood as a special class of general feedforward neural network models with a single hidden layer and sigmoidal transfer functions (Fischer 1998). These models have been used to model journey-to-work flows and telecommunications traffic (Fischer and Gopal 1994, Openshaw 1993). They appear to provide superior levels of performance when compared with unconstrained conventional models.

In many practical situations, however, we have – in addition to the spatial interaction data itself – some information about various accounting constraints on the predicted flows. In principle, there are two ways to incorporate accounting constraints in neural spatial interaction modeling. The required constraint properties can be built into the post-processing stage, or they can be built directly into the model structure. While the first way is relatively straightforward, it suffers from the disadvantage of being inefficient. It will also result in a model which does not inherently  respect the constraints. Thus we follow the second way.

In this paper we present a novel class of neural spatial interaction models that incorporate origin-specific constraints into the model structure using product units rather than summation units at the hidden layer and softmax output units at the output layer. Product unit neural networks are powerful because of their ability to handle higher order combinations of inputs. But parameter estimation by standard techniques such as the gradient descent technique may be difficult.

The performance of this novel class of spatial interaction models will be demonstrated by using the Austrian interregional traffic data and the conventional singly constrained spatial interaction model of the gravity type as benchmark.



Production of Knowledge and Geographically Mediated Spillovers from Universities: A Spatial Econometric Perspective and Evidence from Austria
Manfred M. Fischer   Vienna University of Economics and Business Administration
Attila Varga     Vienna University of Economics and Business Administration

The paper sheds some light on the issue of geographically mediated knowledge spillovers from university research activities to regional knowledge production in the high tech sector in Austria. Knowledge spillovers occur because knowledge created by university is typically not contained within that institution, and thereby creates value for others.

The conceptual framework for analysing geographic spillovers of university research on regional knowledge production is derived from Griliches (1979). It is assumed that knowledge production in the high tech sector essentially depends on two major sources of knowledge: the university research that represents the potential pool of knowledge spillovers and R&D performed by the high tech sector itself. Knowledge is measured in terms of patents, university research and R&D in terms of expenditures. We refine the standard knowledge production function by modelling research spillovers as a spatially discounted external stock of knowledge. This enables us to capture local and interlocal spillovers. Using district-level data and employing spatial econometric tools evidence is found of university research spillovers that transcend the geographic scale of the political district in Austria. It is shown that geographic boundedness of the spillovers is linked to a decay effect.



Differential Urbanization Theory: Turkey, 1955-97
Ayse Gedik     Orta Dogu Teknik University

The purpose of this paper is to test the differential urbanization theory for the Turkish case during 47 years for the eight periods during 1955-97. The position of the Turkish case in the differential urbanization theory is analyzed firstly for all Turkey; and subsequently foe each of her three major regions with differing development levels. The source of the data is from quinquennial Population Censuses during 1955, and 1990, and the 1997 Population Count. The unit of observation is urban settlements with larger than 125,000 population in the 1990 Population Census.
The findings in Turkey, in general, are consistent with the theory of differential urbanization. Although the evolutionary phases of "urbanization" (in 1960-65), and "polarization reversal" (in 1975-80) were experienced in sequence, some stages were skipped. An interesting finding was that in the very initial stages of urbanization (such as in 1955-60) when rural-to-urban and intra-regional migration was very significant; the first stage is not the growth of the "large" urban centers ("urbanization" phase), but surprisingly the growth of the "small" urban centers ("counter urbanization" phase)--which in this paper is called as "pre-concentration" phase). Thus it might be necessary to revise the first cycle of the differential urbanization theory with its three phases to the one with four phases (pre-concentration, urbanization, polarization reversal, and counterurbanization). This finding might be similar to the findings in various theories which explain various changes through time in terms of an inverted-U shape or bell shape where the initial and the last phases are similar to each other.

According to the available data, Turkey as a whole and her different regions completed the "urbanization" phase of the first cycle of urban development; and were at the "early medium city" stage which is the first phase of the "polarization reversal". In other words, she is approximately in the middle of the first cycle of urban development.

When the analyses was carried out for her three different regions, the findings were consistent with the level of development of each region, in many respects. For example, while the "most developed" region (West Turkey) leaded the national trends; the "least developed" region (East and Southeast Turkey) "lagged" behind. The trend in the region with the "medium development" (Central Turkey and Black Sea) was parallel to the trend in Turkey as a whole.



Assessing the Regional Effects of National Competition Policy Reforms: A Dynamic Computable General Equilibrium Approach
James A.D. Giesecke   University of Tasmania
John R. Madden    University of Tasmania

This paper examines the regional impact of an Australian competition policy reform.  A stimulus to ongoing microeconomic reform in Australia occurred in 1995 when the federal government and the governments of Australia’s six states and two territories agreed on the introduction of a National Competition Policy (NCP).  Previous work designed to assess the benefits of NCP and its regional economic impacts have assumed that the policy would move the industries undergoing reform to world-best-practice levels of efficiency (e.g. Industry Commission, 1995 and Madden, 1995).  The impact of the reforms were then modelled as shocks to industry productivity equal to the gap between Australian efficiency and world best practice (as measured by such techniques as data envelopment analysis).  This modelling work, however, has been subjected to a number of criticisms (Quiggin, 1996 and 1997), particularly that the modelled efficiency gains were substantial overestimates of what NCP would actually bring.

In this paper we employ a multiregional dynamic computable general equilibrium model, FEDERAL-F to take a new approach to the problem.  We attempt to overcome two of Quiggin’s criticisms, by concentrating on the observed changes in efficiency in one of the sectors subject to NCP reforms (utilities) immediately after the introduction of NCP.  That is, we measure the effect of NCP on this sector in terms of the observed change in productivity after the introduction of the reform, rather than by a comparison between actual and best-practice levels of productivity.  The changes in the utilities sector’s primary factor productivity pre- and post- the introduction of NCP are calculated during historical simulations with FEDERAL-F.  We investigate the impacts that the change in observed productivity improvements have had on indicators of aggregate economic activity in Tasmania and the rest of Australia, concentrating in particular on the Tasmanian results.  We investigate the impact of the productivity improvements over both the historical period 1996/97 - 98/99, and a forecast period extending from 1999/00 to 2003/04.



The Evaluation of Policies for Urban Growth Management in Seoul Metropolitan Region
Seong-Kyu Ha    Chung-Ang University
Jae-Ik Kim     Keimyung University

The purpose of this paper is twofold: first, to discuss the problems and policies of urban growth management in Korea, and second, to analyze the effectiveness of  growth management in Seoul Metropolitan Region.

The spatial policies of Korean government for the last three decades had focused on growth control for nation-wide balanced growth. For this purpose, most of spatial policies are designed to prevent population concentration in the Seoul Metropolitan Region (SMR). The SMR is among the most dynamic and rapidly growing urban agglomeration in the world. Although the government has taken strict policy measures, the region share of employment, manufacturing, and population has been increasing. This trend indicates that the effects of the measures were not reflected in restriction of growth. However, the greenbelt has been built and managed mainly by political reasons. This brings about social discontent among stakeholders. This paper is going to explain why and what is the problems of urban growth management policies in Korea and to suggest appropriate policy tools such as urban growth boundary, if possible.



The 2002 World Cup and City Marketing
Yeong-Joo Hahn    Seoul Development Institute

Sports mega events can serve as a crucial catalyst for ‘City Marketing’, a strategic effort aimed at re-creating urban images through renovated physical infrastructure, developed cultural and tourist potential, and intensive media promotion of urban uniqueness. Seoul, which has experienced rapid quantitative economic development, is refocusing its urban policy in order to reinforce urban competitiveness, help maintain an advanced urban environment, and to emphasize the quality of life with the arrival of the 21st century. Specifically, Seoul is switching from an unconditional growth-orientated strategy to a more advanced and systematic form of city marketing that holds more respect for flexibility and openness. The 2002 World Cup is expected to be a crucial turning point for this paradigm shift in urban policy. All said, the 2002 World Cup can and should be an engine and incubator of urban development in Seoul.

My paper will inquire into a variety of interfaces where the 2002 World Cup and the city marketing of Seoul come into contact with each other. The former part of my paper will be dedicated to the academic explanation of the relation between sports and city marketing (or urban development), followed by the analysis of a chronological review of Seoul’s urban development, its current status, and the city’s plans for the future. The latter portion of the paper will deal with various discourses (academic or general) and expectations related to the 2002 World Cup in Korea, and the complex process in which the World Cup and city marketing in Seoul are interconnected. Here, the basic concept and detailed account of strategies for the 2002 World Cup by the Seoul metropolitan government will be provided. Lastly, I will suggest strategies to be pursued for the successful city marketing of Seoul through the 2002 World Cup.



Massive Housing Construction Policy and Vacancy Chains: Seoul, the Republic of Korea
Jung Hoon Han    University of Queensland
Scott Baum     University of Queensland

The development of the massive housing construction policy by the South Korean government in 1988 was seen as a significant phase of land use and development planning. Like other cities in Asia, Seoul had witnessed strong population growth fed by migration from surrounding provinces and as a result suffered significant housing shortages and other endemic housing problems. Significantly the policy framework introduced by the South Korean government aimed at developing massive scale housing to outer Seoul for middle and high-income households in the hope of freeing up existing housing for low-income households. Implicitly, this housing filtering strategy is regarded as an important mechanism in providing housing vacancies for the inhabitants of Seoul, particularly the urban poor. To date very little evaluation of theses policies has been undertaken and it is within this context that the current paper is set. The paper has a number of aims:
1) present an overview of the massive housing construction policy, particularly the massive scale new town programs to outer Seoul;
2) discuss the methodological issues involved in evaluating the government’s policy response; and
3) develop a Markov vacancy chain model to assess the impact of massive housing construction upon housing opportunity in Seoul.



The Relationship Between Student Residential Patterns and Commuting Practices
Jay Harland     University of Montana

College students are rarely the focus of transportation and housing research. The purpose of this thesis is to study the relationship between University of Montana student residential patterns and commuting practices in a small American city - Missoula Montana.  This relationship is addressed by investigating four questions: a) Where do students live? b) Why do students live where they do? c) How important are commuting considerations in student residential decisions? d) How do residential patterns affect commuting practices?  GIS was used to locate over four hundred off-campus respondents to a survey on housing and transportation, showing where students live.  Linear regression was used to test how residence price is predicted by residence size and distance to campus. Analysis of variance was used to test whether some household types prefer proximity to campus, paying a premium per square foot, while other household types prefer to pay less per square foot sacrificing accessibility.  The linear regression and analysis of variance procedures examine why students live where they do, and the importance of accessibility in student residential decisions.  Logistic regression was used to assess the impacts of residential location on commuting mode.



Local Revenue Hills: A General Equilibrium Specification with Evidence from Four US Cities
Andrew F. Haughwout   Federal Reserve Bank of New York
Robert Inman    University of Pennsylvania and NBER
Steven Craig    University of Houston
Thomas Luce    University of Minnesota

We provide estimates of the impact and long-run elasticities of tax base with respect to tax rates for four large U.S. cities: Houston (property taxation), Minneapolis (property taxation), New York City (property, general sales, and income taxation), and Philadelphia (property, gross receipts and wage taxation). Results suggest that all four of our cities are near the peaks of their longer-run revenue hills. Equilibrium effects are observed within three to four fiscal years after the initial increase in local tax rates. A significant negative impact (current period) effect of a balanced budget increase in city property tax rates on city property base is interpreted as a capitalization effect and suggests that marginal increases in city spending do not provide net benefits to property owners. Estimates of the effects of taxes on city employment levels for New York City and Philadelphia - the two cities for which employment series are available - show the local income and wage tax rates have significant negative effects on city employment levels.



Immigration and Native Migration in New York City, 1985-1990
Katherine Hempstead   Rutgers University

The 1990 PUMS is used to analyze the relationship between immigration and outmigration of the native born.  The study population is limited to native born males who lived in the five boroughs of New York City in 1985.  The relationship between immigration and the probability of various kinds of moves is assessed using logistic regression.  Results suggest that immigration has an insignificant effect on migration among those with higher educational attainment, and a significant and negative effect among those with less education.  Unlike prior work, this study examines a single metro area, and does not limit itself to inter-statemigration.  While inconsistent with a standard labor market competition hypothesis, or with the "balkanization" scenario which has been developed by some scholars.  (Frey, 1995), these results are consistent with more recent work (Card, 2000; Kritz et al, 2001) which has failed to find a positive effect of immigration on native migratory behavior.



Professional Services In a Transitioning Economy
Brian P. Holly    Oregon Economic & Community Development Department

For the past 20 years the state of Oregon has undergone a fundamental transition in the structure of its economy.  Where once Oregon relied heavily on the timber and wood products industry for the majority of its direct and indirect employment creation and exports, today the state enjoys a more diverse array of economic activity that is anchored by high technology manufacturing, value-added agriculture, software, creative and professional services, and transportation equipment.  Lumber and wood products still play an important roll, but far less so than in earlier decades.  This paper documents the transformation of Oregon from a resource dependent economy to one that more closely mirrors the national economy.  Professional services, a combination of legal, business and financial services, have lagged other sectors in this changeover.  Oregon remains a net importer of professional services, due in part to its lack of corporate headquarters and regional offices, modest air connections, and its secondary position relative to Seattle and San Francisco.   Using primary and secondary data, the paper examines labor, market, and locational trends in Oregon’s professional services, compares the industry to national and regional developments, and details recent policy initiatives designed to promote growth in professional services in the state.



An Evaluation of the Regional Economic Performance in Korea: Its Policy Patterns
Ki-yong Hong    Dankook University
In-won Kang    Dankook University

The concept of regional economic growth has a multitude of facts.  It is based on the set of features that describe the position at a certain point in achieving their policy efforts.  The recent trends of regional economic policy can be traced to several factors that is policy moves from direct involvement and intervention to creating a favourable policy environment for regional economic development as well as promoting and developing their initiatives.

Two hundred sixty officials out of eighty municipalities were interviewed to collect data concerning 10 significant variables.  The major findings can be summarized as follows: Firstly, factor analysis indicated that the most local government in Korea traditionally employed the supply oriented policy measures including tax exemptions and financial incentive programs.  Secondly, the high competitive region appears to have more demand oriented programs such as innovative and entrepreneurial policy devices based on the high local financial capacity.  Thirdly, it also found out that the high performance regions in regional economic policy have highly correlated with regional competitiveness drawn from its policy complexity and comprehensiveness.  However, there is no evidence between its high performance and local finance viability due to improper policy evaluation process as major policy achievements except metropolitan regions.



Intergenerational Transfer of Housing Assets in Taiwan: A Socio-Economic Study of Wealth Shift
Ping-hsiang Hsu    National Taiwan University
Chang-I Hua    National Taiwan University

Home ownership in Taiwan exceeds 80 percent of all families, comparing that of about 60 percent in most western countries and Japan. This extraordinary high rate is explained mainly by that 20 to 30 percent of adults are living with their parents. The practice of three generation co-housing gives, on the one hand, adequate financial support to owing high priced housing in Taiwan and, on the other hand, has developed a common but complicated tradition of intergenerational transfer of housing asset. The transfer can be viewed as taking two forms. One is a transfer of stock, the inheritance of a housing unit, and the other is through sharing housing service flow, which also helps the next generation to build up wealth but has different implications in family relationship. The latter case is particularly understudied in the western countries.  Whichever the form it takes, housing transfer in Taiwan is affected by both social norm and individual's rational calculation. We propose a behavior model incorporating both altruistic and selfish motivations in it. The derived implications are tested against empirical observations drawn from 3 sets of national social surveys in the 1990s. They explain the results of housing transfer and specify the conditions that make it happens. Our findings shed new lights on the housing market reality in Taiwan and point to policy implications. Most of all, we hope our approach may broaden the methodology of housing research by integrating economic approach with social and psychological aspects of family.



A Citation Analysis of the Knowledge Spectrum in Regional Studies
Hui-chi Huang    National Taiwan University
Ping-hsiang Hsu    National Taiwan University
Chang-I Hua    National Taiwan University

We conducted a citation analysis to quantify the knowledge interactions among journals that are directly or indirectly related to regional studies. A set of seed journals were recommended by various scholars. Their published papers during the 1990 decade generated further references cited and a data-base of 336,072 citations was first established. On this data-base we proceeded to apply multi-variate statistical analyses and our results include:1, a multi-dimensional scaling of 61 SSCI journals that cover regional science, geography, environmental studies, recreation, transportation, urban and regional planning and economics, and 2, the relative ranking of these journals in terms of both impact (total frequency of being cited) and quality (the impact divided by the published papers). Next, the six journals in regional science were the focus of our attention. Their interactions with each other, relative standing, and knowledge sources were analyzed with special treatments.



Impact Study on Population Movement on the Regional Economy in Japan
Takeo Ihara     Kagawa University
Toshiro Masaoka    Takamatsu University

Recently, the aging-speed in Japan has been accelerated, particularly in rural areas as compared with urban areas.  One of the main reasons might be stated that the younger generations tend to move out from rural areas to urban areas.  In addition, the number of population coming back from urban areas to rural areas is not sufficient enough to increase the total number of the latter areas.

The main aim of this paper is to clarify the regional impacts of population movement, aging and regional policy in Japan.  Judging from our empirical fact-findings, we can draw the clue to vitalize the regional economy and some insights for regional science, including the qualifications and limitations of the industrial agglomeration.



Citizen Participation in Rebuilding Urban Core
Yang-Bin Im    Konyang University,
Deog-Seong Oh    Chungnam National University

One of the methodologies that has been used as a tool for urban development in recent years is that of urban regeneration.  This is seen as a means of restoring and improving the quality of urban life through the enhancement and development of the unique characteristics of a city and its people.  The paper looks at how local government copes with reconciling the interest of development and conservation under the continuing pressure of regional development, focusing on an area of Old downtown in Teajon Metropolitan City, Korea and outlines the ways in which citizen participation is used as part of the process of wider urban regeneration.  As urban growth has extended the boundaries of Taejon  metropolitan areas outward, its Downtown Revitalization Plan has been adopted as a tool for controlling individuals, as well as businesses, local government, and other organizations, about the progress that they are making towards achieving urban regeneration.  It is suggested that, for improved chances of success, the adoption of a holistic approach to the linking of local government and its people is required, with policy-maker using citizen participation as an organizing principle for the development of ‘urban core on the rebound.



Attainment of Economic Benefits through Optimal Sharing of International Water: A Policy Measure for the Teesta River
Md. Fakrul Islam    University of Tsukuba
Yoshiro Higano    University of Tsukuba

Sharing of international river-water among riparian states has existed as a problem since ancient times. In Bangladesh, there are more than 200 rivers, which have their origin in other countries, e.g., India, Nepal and China and almost all the rivers flow through India before entering into Bangladesh. Among  these rivers, the Teesta is an important one-- the issue of sharing of the water of which has not yet been solved. The Bangladesh authorities constructed a barrage at Dalia (located at the downstream) to use Teesta water for irrigation purposes. Only two years after the commencement of the operation of the Dalia barrage the Indian authorities started operating the Gazoldoba barrage at the upstream. This resulted in the Dalia barrage's becoming practically useless. Moreover, at the freewill of the Gazoldoba authorities, the people of the downstream (Bangladesh) experience flash floods. The authorities  of both the countries met many times and signed treaties to resolve the problem, but have failed to reach an effective solution. We believe that treaties that are only politically induced and do not include provisions for economic benefits on part of the riparian states are not likely to sustain for long. There are some examples of bilateral treaties (e.g., the treaty between the USA and Canada on the issue of using Columbia River water and the one signed by Egypt, Sudan and other riparian states for using the Nile River water), which have ensured optimal and economic benefits for all the riparian states, and hence have been enduring for quite a long time. In this paper, we try to develop a simple theoretical model for bilateral sharing of international river water, which would be equitable, and be able to provide the highest possible benefit for the residents of the river basin area as a whole. Moreover, we propose an optimal solution to the water-sharing problem of the Teesta River.



Effectiveness of Environmental Management Systems for Public Sectors – Case of Japan
Kayo Ito     Kyushu University

Since the Rio summit in 1992, Sustainable Development has becomes an important phrase in talking about the Environment. In recent years, with the publication of BS7750, EMAS and some standard of ISO1400O series, there has been increased international interest in and commitment to improving environmental management practices by both the public and private sectors. Many existing surveys relate to Environmental Management Systems (EMS) focuses on private sector. However, author focuses on public sector because they can influence on other sectors when they apply their knowledge into environmental policy. Author already described the movements toward EMS while using field research for public sectors to point out the reason of implementation, to analyze the merits and limitations of EMS for the public sectors and stakeholders. The paper concludes that the reason for implementing EMS is to introduce environmental consciousness into daily activities of organization and to promote the movement of environmental conservation. As to the limitation, there are three. 1) Problems of open information and public participation relating to the environment. 2) Problem of Cost, 3) Problem of equity within generations (Ito 1999).

This paper focuses on political effectiveness of introducing EMS into policy by analyzing public sectors that implemented. It is divided into the three main parts. First, the showing the present movements toward EMS and its political background while using field research for Japan, UK, Germany and USA. Question examined here is how EMS relates to environmental policy. Author point out that EMS has been used as a tool to promote movements of greening government. Second theoretical explanation about EMS for public sectors. It shows survey about environmental cost, administrative accountability, and evaluation in the field of environmental economics, environmental accounting, politics, law, and study of public administration. Questions examined here are divided into two: first what is the cost relate to EMS, second what is accountability, where accountability lies and to whom. Third, evaluations of EMS for public sectors while using field research for public sectors with ISO14001 certification in Japan. Question examined here is whether the organization with EMS can meet the administrative accountability which include Probity accountability: Complying with law and regulations.Process accountability: Using adequate measures in the process.Performance accountability: Efficient and economical operation, Progress accountability: Establishment and achievement of goals, Satisfaction of resident about service provided by administration.Political accountability: Selection of policies. Author concludes that introducing EMS into environmental policy is effective.



Across the Digital Divide: Resource Based Regions and the New Economy
Paul Johnson    University of Alaska Anchorage
Lee Huskey     University of Alaska Anchorage

In many parts of the country state and local governments are attempting to replicate the success of Silicon Valley in their own Silicon Forest, Prairie, or Tundra. This paper examines the limits on and the potential for the growth of an information economy in regions that have historically specialized in resource production. We investigate a number of explanations of the location of high technology firms and relate them to the characteristics of resource industries and the regions in which they concentrate. A number of hypotheses are offered. These hypotheses are tested by examining the location of internet content production firms in the US.



The Relation between User’s Mental Factors and the Characteristics of Environmental Space Considering with Earthquake Disaster Risk
Daisuke Kamiya    Kyoto University
Yoshimi Hagihara    Kyoto University

Environmental spaces are important for residents to enjoy in daily life and to take refuge in case of disaster. Therefore spatial planning must be considered with both situations.  Firstly, this paper shows that region analysis for disaster mitigation planning. This analysis has focused on environmental spaces.  Secondly, this paper makes clear the relation between user’s mental factors and these characteristics. Fieldwork and consciousness research concerning environmental spaces at Hokusetsu region in Osaka prefecture were done. These characteristics that give influence to users are structured with interpretive structure modeling, and these are classified to hierarchy by area. Above relation is modeled with latent variables that are given factors by exploratory factor analysis model. These relations are analyzed with covariance structure model, and made clear by every hierarchy.



City Visit Travel Behavior of Mountain Area Residents
Masuo Kashiwadani   Ehime University
Toshimichi Yamauchi   Ehime University

In this paper we discuss travel behavior of rural residents, particularly the city visit behavior of their discretionary trips.  A simple conceptual model is proposed.  It is found that the times of city visit are depending on rather demographic characteristics than distance between a city and a village on holidays and on both demographic characteristics and the distance on working days by a numerical simulation.

Actual investigation is executed by two travel diary surveys for 240 persons and for a weeklong consecutive day in a mountain area of Shikoku Island, Japan.  The most of respondents are local governments employee and their family partners.  They are younger compared to the age distribution of whole population in the area and their preference is expected to be similar to that of urban residents.  The investigation results support the expectation by the facts that 94% of households visit a city Matsuyama, consuming more than two hours drive in a round trip, at least once a week to get better goods or services and their average number of trips is close to that of urban residents.  Discrimination analyses between city visitors and village remainders suggest that age is the most significant variable, the effect of location variable is much weaker than that of age on city visit behavior on holidays but the degree is a little moderated on working days.



Estimation of Optimal Level of Road Stock of Korea
Euijune Kim     Yonsei University
Myungsoo Shin    Korea Appraisal Board

The supply of transportation infrastructure helps generate economies of localization and urbanization through concentration of production factors, solving the spatial mismatch between demand and supply in commodity, labor and housing markets. Infrastructure investment does not, however, always have such a positive effect on the spatial economy. For example, if institutional restrictions are placed on capital mobility, the pressures on the demand for public infrastructure investment would crowd out private investment, with inflation in price levels and capital cost. Furthermore, the spatial economic effects from an expansion of transportation facilities might be not positive if equilibrium of supply and demand is maintained in the transportation services.

This paper is concerned with measuring the regional benefits from road investments in Korea. The translog cost functions of the manufacturing industry are estimated for the four macro regions of Seoul Metropolitan Area, South-Eastern Area, South-Western Area and Central Area, using the time series and cross-section data of prices and quantities of output and inputs for the period 1986–1997. Production costs are measured using the output level of manufacturing sectors, factor inputs of labor, private capital and materials, road capital stock and spatial attributes such as technological change, population density and the number of firms as proxies. Benefits are assessed in terms of the regional impact on marginal benefits and the net social rate of return to the road capital stock accruing to cost savings. Finally, the optimal level of road capital stock by region in Korea is derived from the cost function and the price of private capital. This quantitative analysis can contribute to the spatial development of road construction in terms of investment priority and linkage.

This paper shows that the road capital contributes significantly to economic growth and productivity at the manufacturing industry. The magnitude of the road capital stock elasticity of the production cost at the national level is -0.0124. The net social rate of return for all regions is higher than yield of corporate bonds, which implies that the road capital stock is under-supplied in Korea. The ratio of optimal to actual road capital stock in all regions declined from 1986 to 1991 and has then increased in all regions except Seoul Metropolitan Area since 1992. This implies road capital is relatively over supplied in Seoul Metropolitan Area. In order to generate economic efficiency and regional equality, it is necessary to shift more road capital investment to South-Western Area and Central Area rather than Seoul Metropolitan and South-Eastern Area.



Structural Changes and Causalities of Sub-Regional Office Markets in Seoul
Euijune Kim     Yonsei University
Wankyu Yang    Yonsei University

The purpose of this study is to estimate equilibrium of demand and Cheonsei-rent price using pooled cross-sectional and time-series data by three sub-regional office market such as CBD (Central Business District), TBD (Teheran-road Business District), and YBD (Yoido Business District).  These market cores contain over 90 percent of the total supply of buildings with a GFA of over 10,000 m2 or a TFA of 500 m2 more than ten stories.  Chonsei is defined as a lump-sum deposit to be paid in advance to the landlord and returned at the end of the lease period without interest.  This paper also tests a structural change in Seoul Metropolitan office markets over the time and causalities among the sub-regional markets.

The primary method is a dynamic structural equation model based on the equilibrium of supply and demand, employed to explain the speed and size of responses of office market conditions to underlying economic factors.  The data from Office World Reports for Seoul Metropolitan office market from the third quarter of 1999 to the fourth quarter of 2000 are used to model office market behavior.  This paper discusses the impacts of market conditions on the rent and Cheonsei amount, and mid-term simulation of market demand and price level under the macroeconomic trend such as financial crisis and economic recession.



A Comparison of Korea and the U.S. Urban Economic Bases: Applying the Minimum Requirements Method
Hak-Hoon Kim    Chongju University

This study attempts to analyze the economic base of Korean cities applying the minimum requirements method and to compare it with that of the U.S. cities.  The minimum requirements method has been credited to be superior to any other indirect method in estimating the economic base multipliers. This study tries to find the validity of the minimum requirements method by applying it to the economic base study of Korean cities.

The data set for this study is composed of population data and employment data for 202 urban places (78 cities and 124 towns) in Korea.  The population data is reorganized to group the urban places into 13 classes according to the population size.  The employment data is compiled for 15 industrial sectors listed in the Municipal Yearbook of Korea 1998.  These data are analyzed to estimate regression equations of sectoral minimum employments extracted from each population size.  The regression equations of minimum employments for the U.S. Cities are collected from the results of prior studies.

From this study, it is found that the nonbasic employment percentages of manufacturing sector and wholesale/retail trade sector increase in higher rates than those of other industrial sectors as the population size of a urban place grows larger.  Also the regression equation for aggregate industry obtained from this study is found reliable because the regression coefficients are statistically significant, and it is very similar to the result of prior study on the urban economic base of the U.S.  This equation can be utilized to estimate the economic base multiplier of an urban place under an economic impact situation quickly and approximately.  Comparing the shifts in the regression equations estimating minimum employments of Korea and the U.S. cities in different years may be a useful and interesting topic for further research.



The Spatial Effects of the External Shock on Urban Employment Distribution – The Case of Daegu Metropolitan Area
Jae Ik Kim      Keimyung University

This study examines the effects of external shock(the foreign exchange crisis in 1997), on urban employment geography, and analyzes the directions of urban spatial change in the case of Daegu City, one of a Korean non-megalopolis with population 2.3 millions in 1995, using employment data of 1995 through 1999.

The external shock, the foreign exchange crisis started in November 1997, brought about 7.5%(52,370) job loss in the end of 1997 and 17.2%(120,531) job loss in the end of 1998 compare to 1996. Among 13 industries, manufacturing, construction, and finance and insurance are decreased heavily while electronics & gas industries, and health & social work are increased sharply. The employment is recovered by 5.3%(30, 498 jobs) in 1999.

This study estimates employment density gradient using the distance-decay function in the year of 1995 through 1999. There is a general decline in employment density with distance. However, the model explains only 36-38 percent of the variation in employment densities, even though all coefficients are statistically significant. Furthermore, the employment density gradients have flattened over time.  The jobs have been decreased and undergone extensive decentralization between 1995 and 1999 -- the employment decentralization trend keep going even under the condition of employment contraction.  This study also shows that spatial structure of Daegu is changing from monocentricity to policentricity.



The Sensitivity of Price-Changes in Housing Submarkets and Its Determinants: The Case of Korea
Kabsung Kim    Yonsei University

Housing submarkets are defined as geographically homogeneous areas in the sense of the unit price of housing, housing types, and so on. When even a macroeconomic variable changes or a housing policy changes, the extent of responses on local housing markets are different one another. In general, the housing price indices are only announced officially rather than actual unit prices of housing. The paper focuses on the sensitivity of the price-changes in housing submarkets. Price-changes can be directly captured from the announced price indices. The paper also concerns which factors among social and economic variables in market areas effect on the sensitivity of price-changes in housing submarkets. The quarterly data of housing price index, and social or economic variables in 15 regions during the year 1987-2000, announced by the Korean Housing Authority and several public institutions, are analyzed. In Part I, the sensitivity of the price-changes of housing in general, by housing types, and by ownerships are examined. The cluster analysis is used to determine the housing submarkets in Korea. Then, compared to the results of clustering by the unit price of housing, housing types, and ownerships, the strengths and limitations of the sensitivity measure are discussed. In Part II, the determinants of the price-change rates are found by using hedonic models.



Linking Knowledge Management with Regional Science
Moonja P. Kim    US Army Engineering Research and Development Center
Tschangho John Kim   University of Illinois at Urbana-Champaign

Today, knowledge is the most important product in most organizations.  Consequently organizations are interested in helping their employees to apply their knowledge and skills to best effect. Organizations are seeking to create systematic ways to identify and convert individual expertise, skills and experiences into organizational knowledge.   This trend created knowledge management as critical management science focus.  Knowledge management is to provide the ability to capture and leverage what employees knowledge in order to exploit new markets or create innovative new products or services.

This paper explores the ways in which information technology tools for knowledge management, such as portals and collaboration tools, can help with regional scientists in implementing their research, particularly in examining the role of organizations in shaping regional space.



Investment Policy as a Regional Policy
Kristina Korhonen    Helsinki School of Economics

Among the tools of regional policy that central government can use when it wishes to intervene in the regional growth process are the inducements to business in the private sector to invest in a region.  This paper analyses how Korean central and local governments have attracted multinational enterprises to direct foreign direct investment (FDI) in different regions keeping in mind the regional policy objectives.  Moreover, the paper argues that in Korea FDI flows have strengthened the existing regional structures, not reduced imbalances, as FDI is highly concentrated to metropolitan area.  However, spatial patterns of FDI in Korea are likely to change due to FDI liberalisation in 1998 and the restoration of local autonomy in 1994.  These changes enable the delegation of decision-making in FDI issues to local government as the investment policy is an activity, which is probable more suitable for operating locally.



Hidden Order in Congested Urban Freeway Traffic Patterns
Rajendra G. Kulkarni   George Mason University
Roger R. Stough    George Mason University
Kingsley E. Haynes   George Mason University

Congested road traffic has patterns, which are not evident.  Conversely, free-flow traffic appears to have random patterns.  Today many roadways commonly carry two and three times their respective design capacities, even outside of the traditional rush hour periods.  Although, urban VMTs have increased, the average commute times have either remained constant or have shown insignificant increase.  Furthermore, in the absence of traffic accidents, urban traffic flows are typically moving at speeds well in excess of the posted limits.  Inexplicably, accident rates (per 100 million vehicle miles) are decreasing on many urban segments.  So it would seem that high volume traffic should result in more accidents and slower travel times.  But this has not happened.  Usually, congested traffic patterns suggest an inherent disorder or randomness, attributes that would not be helpful in increasing the throughput of traffic systems.  Could it be that there is a hidden order in the congested traffic patterns?  In other words the high-volume congested traffic pattern may be more orderly than previously understood.

This paper suggests a methodology to understand and analyze high-volume urban freeway traffic flows based on Algorithmic randomness theory and techniques from formal language theory.  Procedures for measuring congested urban freeway traffic based hidden order and Kolmogorov entropy are developed.  Modified volume-delay function based on the methodology suggested in this paper are presented as alternatives to the standard HCM (Highway Capacity Manual)/BPR (Bureau of Public Roads) functions.



Regional Fiscal Decentralization, Corruption and Economic Growth: The Impact of Licensing Decentralization on Manufacturing Growth
Ari Kuncoro     University of Indonesia

Like others, Indonesian government is pursuing some form of decentralization, i.e. the transfer of fiscal authority and responsibility from the central government to provincial and municipal levels. If it is done correctly, decentralization not only increase citizen participation in important decisions that affect their lives, but can also enhance a nation’s political cohesion and economic competitiveness. But if it is done badly, it can mean macro instability, more rather than less corruption and the collapse of social safety net.

Corruption in the provision of industrial licensing in manufacturing sector in Indonesia, has frequently been argued to result from overcentralization of licensing regime. Thus, it is argued that, decentralization of administrative licensing system to local governments supposedly better informed about local conditions may improve the efficiency of licensing system. However, if political accountability of local governments is limited, decentralization is also prone to leakages and targeting failure.

Using the Barro-type regression model, this paper examines empirically, the impact of decentralizing administrative licensing system to local governments on the performance of manufacturing sector across regions (province).

The theoretical literature makes ambiguous predictions about the relationship between decentralization of government activities and the extent of rent extraction by private parties and its impact of economic activities. Those in favor of decentralization of power to local authorities argue that decentralization leads to greater variety in the provision of public goods (including administrative licensing system), which are better suited to the need of local population. On the other side, there is a view arguing that many imperfections may prevent the realization of benefits from decentralization. For example, local bureaucrats may be poorly trained and short sighted and thus incapable delivering public goods and services efficiently. Also, there is a phenomenon called overgrazing hypothesis. In a decentralized environment, there is a scenario in which both central and local governments tend to overgraze the common economic activity.

Our estimates suggest that the negative impact of bribery on manufacturing sector performances does not diminish after the period of decentralization. This may indicate that devolution of licensing regime to local authorities may lead to efficiency and welfare losses relative to centralization.



Growth Management Issues and Establishing A Growth Control Quotas Framework in Taiwan
Tsung-Yu Lai    National Chengchi University

Taiwan’s rapid urban development over the four decades has greatly influenced its urban landscape and land use patterns. Land policy has played a crucial role in stimulating economic growth since the late 1950s. For the sake of economic growth, the government promotes excessive development activities that are not related to availability of public facilities and environmental protection. Continuous economic growth has led to rapid urban expansion, resulting in development and growth that outpaced the provision of infrastructure in the urban areas. Worldwide increased attention has been paid to the repercussion between urban development and quality of life. Over the year, dramatic urban growth, along with ineffective governmental policies and unfettered land market in Taiwan, has led to people becoming increasingly dissatisfied with the declining quality of life. Although the government possesses the tools to regulate land development, these tools frequently are too weak to address market failures and to provide solid solutions. Thus, there is an urgent need for Taiwan to reevaluate its current system and develop effective strategies to manage urban development and to reshape its urban vision.

With limited developable land resources, Taiwan lacks a workable system to provide guidance for land planning and control. Within this context, the private sectors oversupply housing and development projects needed. In 2000, the entire Taiwan area had about 1,100,000 vacant units without buyers. On the public sectors, existing planning approach and concept results in urban expansion and sprawl as an insatiable consumption apparatus and devouring open space by land conversion. As a result, 16.78million people reside in urban areas, but existing urban land can still accommodate as more as 7.34million. Urban planning without control has deteriorated natural resources as well as urban finances. Consequently, there is an urgent need for Taiwan to establish a growth control quotas system to manage land development and provide guidance for urban planning, which are the primary objectives of this paper.

Articles of Comprehensive National Land Development Planning Law (Draft) request that the central government should provide guidance of growth control quotas for local governments. Under those articles, localities should develop growth management strategies in coordination with the implementation of development permission system.  However, current studies on growth control quotas in Taiwan are few. The studies on those issues that how can development permission system work with growth control quotas and growth management strategies are needed.

In terms of carrying capacity and growth management concept, the paper will explore current urban planning and land conversion issues. It analyzes the impact of urban development on land use and provision of public infrastructure from a number of perspectives, including demographic, economic, environmental, political, planning, and institutional dimensions. The issues discussed in this paper indicate the need for Taiwan to modify its existing policy and planning framework along with institutional innovation and sustainable strategies. As a result, this paper aims at providing a framework based on growth control quotas as a reference for development permission system as well as the basis of developing growth management strategies in localities. Furthermore, this paper will forecast the development quotas of each city and prefecture in Taiwan by way of gravity model. Finally, it will provide conclusions and suggestions for establishing a framework of growth control quotas and of implementing development permission system.



Do Growth Controls Work: An Updated Assessment
John Landis     University of California, Berkeley

This paper will update my 1992 article in the Journal of the American Planning Association by considering the cumulative effects of locally-implemented growth control and management regimes among California municipalities.  It will be organized into three sections.  The first will summarize and review the recent literature on the effects and effectiveness of local and regional growth control regimes.  The second section will present the results of an empirical model of population and housing growth among San Francisco Bay Area municipalities between 1990 and 2000, accounting for access to employment, land supply, redevelopment potential, job growth, and the presence of formal growth control/management mechanisms.  The third section will use the CURBA (California Urban and Biodiversity Analysis) Model to explore the effects of municipal growth management policies on the spatial pattern of growth at the county and regional levels between 1984 and 1996.  A number of researchers have argued that the principal spatial effects of local growth controls are to further disperse growth to outlying areas; this section will investigate that assertion.



The Role of Immigration in Shaping Population Growth and Aging among Canadian Provinces and Metropolitan Areas
Jacques Ledent    INRS-Urbanisation, Montréal, Québec
Alain Bélanger    Demography Division, Statistics Canada, Ottawa, Ontario
Stéphane Gilbert    Demography Division, Statistics Canada, Ottawa, Ontario

This paper assesses the impact of immigration on population growth and aging with reference to two spatial systems of Canada: the one emphasizing a geographic dimension and the other a metropolitan dimension. Such an assessment is centered on the temporal change in the contribution of international migration vs that of other components (natural increase and internal migration) to annual values of a) the growth rate and b) the mean age of the population pertaining to the various spatial units that make up the two systems: the provinces and territories in the first case; the metropolitan areas (CMAS) as well as the non-metropolitan balances of the provinces in the second.

The analysis is carried out in two steps which both make use of annual data, broken down by age and gender, on the components of change observed over a 15-year period (1981-1996) in all Canadian provinces and CMAs. The first step, which deals with absolute growth and aging, substantiates the increasing importance, in recent years, of the contribution of international migration and mores specifically immigration to both measures as compared to other components. As for the second step, it is focused on relative growth and aging—that  is, on the growth and aging differentials with regard to the national level. It points to wide differences across space in the ability to attract people from outside Canada so that, unlike natural increase, immigration tends to compete with internal migration in accounting for the differences in population growth and aging that can be observed within the two spatial systems and especially the system that emphasizes the metropolitan dimension.



A Proposed Framework of Integrated Transportation System of Northeast Asia
Gun Young Lee     Construction & Economy Research Institute of Korea

Northeast Asian region is in the process of being developed. High potential exists for economic growth. However, it lacks transportation facilities, and in order to expand, a lot of efforts are being undertaken. Connecting a completed transportation network is one solution, but cooperating and arranging among the regions in the beginning steps of construction, as well as creating and uniting an overall network is another.

A rapidly increasing airway network can be effectively connected between regions. Assuming that the network will be connected as hub-and-spoke system, competitions occur for the hub and construction for system expansion is undergoing. A multinational spoke network should be constructed with Seoul, Tokyo and Shanghai as hubs. The airway market in the region must open up in preparation for an open sky.
The marine network is the base for strategic setting and cooperation of the industry. As marine transportation mostly deals in cargo shipping, it must be branded as a high value added industry along with removal of customs and national logistics system. Thus the marine network should be practically unified.

Apart from Japan, the rail system in the Northeast Asian countries is regarded as weak in common. Until now, Northeast Asian railway had not been utilized for international transportation due to an unstable political situation, however, the Chinese route and Siberian route are recently being utilized to Europe. Nevertheless, these are not competitive yet. Japan and Korea should actively participate in connecting the Asian railway with the European railway. This is not only a logistics revolution but also a significant influence on other nearby countries, especially affecting China and North Korea.

Finally, the regional integrated transportation system encompassing land, air and marine network is proposed for the efficient circulation of transportation services and, consequently, to foster economic progress in Northeast Asia.



Evaluation of a Shared-Use Electric Vehicle Program: Integrating a Web-based Survey with In-vehicle Tracking
Ming S. Lee     University of California, Irvine
James E. Marca    University of California, Irvine
Craig R. Rindt    University of California, Irvine
Angela Koos    University of California, Irvine
Michael G. McNally   University of California, Irvine

An experimental shared-use vehicle program is currently underway in Irvine, CA. Several public and private sector organizations are participating in this program which involves a total of 15 Toyota e.com electric vehicles distributed among participants. Each organization has selected a group of employees to share the program vehicles (these employees had already utilized the vehicles in a preceding “exclusive-use” phase of the program). All participating employees of a given organization (usually 5-10 drivers per allocated e.com) have access to the allocated shared-used vehicles during the workday (access in the evening and on weekends vary by employer). The primary goal of this experiment is to evaluate the potentials of such a travel alternative as a means of reducing urban traffic and vehicle emissions. The demand for travel is derived from the need to participate in activities, therefore, a decision to travel using the shared-use vehicles can only be understood by considering the entire activity scheduling process, both before and after a shared-use vehicle becomes an alternative means of travel. To examine this decision process and to evaluate this travel alternative, a unique data collection procedure is applied to obtain the necessary information from program participants.

The data collection process is proceeding in three phases: (1) before the vehicle-sharing program, (2) during the program, and (3) after the program is completed. A Computer-Aided Self-administered Interview (CASI) program, REACT!, is being used to collect activity schedules from participants. Each REACT! application surveys on a full week of activity scheduling behavior for each participant and other adults in their households. The data from the first phase will depict participants’ typical weekly activity programs before the alternative of shared-use vehicles is present. During this phase, participants will use REACT! as applied in prior studies. On the first Sunday evening, respondents indicate basic household and personal information as well as information on activities they have planned for the coming week. On each subsequent evening, they are asked to update what they actually did thus far and also to indicate any changes to the plan for the remainder of the week. In the second phase when shared-use electric vehicles are available, REACT! is used in conjunction with the GPS tracking instrument, TRACER, installed in all program vehicles.  TRACER units integrate GPS capabilities with wireless communications so the vehicles can be tracked in real-time. While the tracking study is running continuously, the REACT! program is being executed at regular intervals. During these weeks, the vehicle tracings will be conveyed to participants as they utilize REACT!. In addition to typical weekly activity schedules, this integration facilitates the exploration of route choice dynamics that may be affected by the unique characteristics of the electric vehicles. This scenario combines data on vehicle paths with contemporaneous data on traffic conditions along that path and also with information from respondents about why specific routes were selected. In the third phase after the program concludes, the Phase 1 procedure is repeated to see if there are any residual effects in participants’ activity/travel patterns. This paper presents the results of Phase 1 as well as preliminary results of Phase 2.

The proposed computerized survey can significantly reduce data collection time and cost, improve data quality and scope, and allow for continuous data collection. Furthermore, a panel-like comparison across all three phases will facilitate the identification of the spatial and temporal patterns of shared-use electric vehicle usage and the underlying determinants governing those patterns. This unique integration with the in-vehicle GPS-based TRACER system together with real-time monitoring of local transportation system performance provides the opportunity for a comprehensive evaluation of travel behavior, in general, and shared vehicle use, in particular. Only through such a comprehensive approach can vehicle-sharing schemes be effectively examined and evaluated.



In What Degree Does Place of Birth Matter for Households' Residential Well-being? The Effects of Lopsided Regional Policy and Social Discrimination on Homeownership Disparities in Seoul, Korea
SeongWoo Lee    Seoul National University
JiYoung Park    Seoul National University
SeongHee Min    Seoul National University
JoongGu Cho    Seoul National University

In what degree does place of birth matter for households' residential well-being in Korea? The present study investigates the effects of lop-sided regional policy and social discrimination on homeownership disparities in Seoul special city. The present study utilizes individual household-level census data (2% sample) to evaluate households' residential well-being denoted by homeownership status. Decomposition techniques based on tenure choice models were used to provide evidences of the home ownership disparities caused by regional policy and prejudice. We found that households from Kangwon and Cholla provinces represent a disproportionately small percent of homeownership ratio compared with people originated from other provinces. In the statistical analysis, the present study found that having controlled for the factors traditionally thought to influence households' choice of housing tenure, as well as other housing market characteristics in Seoul, place of birth has played a primary role in determining whether or not households becomes a homeowner. Most strikingly, while most of the disparity in homeownership ratios between households from Kyungsang and households from Kangwon in the housing market is due to the endowment differences in human captials they bring to the market, those between households from Kyungsang and households from Cholla is largely due to residual differences explained mainly by social discrimination and prejudice against people from Cholla. The present study concluded with some policy issues to alleviate the social discrimination and suggested some future studies.



The Patterns of Regional Economic Growth in Korea
Yung Joon Lee    Pusan National University

This paper attempts to explore the sources of industrial growth in  Korea with special emphasis on the spatial patterns of regional and  urban development. Korea witnessed a marked decentralization and  deconcentration process in terms of manufacturing employment from early  1980's. For the measurement of regional growth, a preliminary study for  total factor productivity (TFP) analysis was applied to the manufacturing  industry for 1981-1989, which was one maor part of the article. (Yung  Joon Lee and Hyoungsoo Zang, Urbanization and Regional Productivity in  Korean Manufacturing, Urban Studies, Vol. 35, No.11, 1998). Now, this  study will cover empirical measurement TFP from 1968 to late 1990's in  order to distinquish the early stage of industrialization and  urbanization from the later stage of development that is associated with  geographical dispersion and reconcentration of industries. This study would discover major patterns of Korean regional growth which would be  characterized by a material and capital-using phase in the early stage  and by a productivity-increasing phase in the later stage of regional  and urban development of Korea.



Space-Time Analysis of GDP Disparities among European Regions: A Markov Chains Approach
Julie Le Gallo    University of Burgundy

The purpose of this paper is to study the evolution of the disparities between 138 European regions over the 1980-1995 period.  We characterize the regional per capita GDP cross-sectional distribution by means of nonparametric estimations of density functions and we model the growth process as a first-order stationary Markov chain.  Spatial effects are then introduced within the Markov chain framework using regional conditioning and spatial Markov chains.  The results of the analysis indicate the persistence of regional disparities, a progressive bias toward a poverty trap, and the importance of geography to explain growth and convergence processes.



Highway Hierarchies and the Efficient Provision of Road Services
David Levinson    University of Minnesota
Bhanu Yerra     University of Minnesota

Transportation networks and governments are both hierarchically organized. In some states (e.g., Virginia) most highways are financed by state governments, while in other states (e.g. Kansas) similar roads are financed locally. The layer of government which achieves minimum cost in financing a particular stretch of road depends on many factors.  Larger governments attain scale economies.  However they also tend to be more bureaucratic and have higher operating costs, all else equal, due to problems such as span of control. This study relates road expenditures by functional classification with share of expenditures by government layer so that a basis for determining which roads should be financed by which government in what share can be obtained. For each network layer three different costs are considered: capital outlay, operations and maintenance, and total costs.  Two network layers are considered, corresponding to arterials on the one level and collectors and local roads on the other.  Two government layers are also considered: state (including federal contributions) and local government.  A series of regression models to predict expenditures by type for each road as a function of utilization, capacity, and funding shares are estimated.  We find that there is a share of expenditures by each level of government which results in a minimum total expenditure for that type of road for each purpose (capital, operating).  That minimum is not very far from typical state/local mixes found in many states. The results of this study can be applied in formulation of efficient network financing arrangements.  Different policies can be formulated depending on this study that can help adjusting the financial responsibilities of transportation networks between the government layers.



Interregional Computable General Equilibrium: Analysis of the Sulfur Dioxide Problem in China
Aijun Li     Toyohashi University of Technology
Yuzuru Miyata    Toyohashi University of Technology
Hiroyuki Shibusawa   Toyohashi University of Technology

With rapid economic growth, the nationwide air pollution problem has become one of the most serious social issues in China. The reason of this problem is undoubtedly a rapid increase in energy consumption as her economy grows. As well known, China is the biggest coal producing country in the world. Huge and cheap coal products have determined the primary energy composition, that is, coal occupies a large portion in primary energy products, and such dominance is expected to be long lasting in the future. Thus the air pollution in China is resulting from coal combustion with a large amount of discharges of sulfur dioxide (SO2). To cope with the air pollution problem, an environmental policy, “Charge on SO2 Discharge” has been implemented in the thermal power and heating supply sectors, but its economic and environmental impact has never accurately been evaluated in China.

In this article, therefore, we develop an interregional computable general equilibrium model to measure economic impacts of environmental taxes to curb SO2. In this model, China is divided into seven regions with nine industrial sectors in each region, based on a 1992 interregional input-output table estimated by authors themselves. The primary and secondary energy sectors are explicitly specified in the model to deal with various sources of SO2 emissions in China’s economy. Moreover, uneven geographical distribution of natural energy resources is one of the specific factors to characterize China’s energy and air pollution problem. Namely, the developed regions necessarily demand a large amount of energy, resulting in a need for shipping coal and oil from the undeveloped regions. By nature of China’s wide land area, transportation network to carry energy resources is a key factor in economic development. This crucial situation is also dealt with in the model by specifying interregional transportation services. To abate SO2 emissions, sulfur taxes are introduced as ad valorem tax, and then its economic impact on industries and households in each region can be numerically examined by applying our model.



Evaluation of the Optimum Transportation Investment in China and Its Impact on the Environment
Bin Li     University of Tsukuba
Yoshiro Higano    University of Tsukuba

Transport investments result in expansion of interregional trade, acceleration of economic activities and people benefit from that. But as the transport system becomes developed and diversified, it brings about traffic pollution (ex. noise and exhaust gas from cars) and the environment deteriorates by the constructions of transport infrastructures.

Now, similar to the industrialized countries, the necessity of “the harmony of development and environmental protection” is being recognized in the developing countries. With the development of economy, people in Asian countries are also becoming aware of the problems quickly. However, the consciousness is not necessarily reflected in the policies.

The situation is the same in China. In order to solve the serious transport problems in the western region of China, “National Tenth Five-year Construction Plan” has been presented. According to this plan, transportation investment is a key policy variable. As the transport system plays an important role in the production process, the plan will have immense impact on the regional structure of China. The economy of China will develop by the plan but it is also predicted that it will bring about industrial and city pollutions. Finding out the way to harmonize optimally both the economical effect and environmental influence of the plan by implementing environmental policies is the objective of this research.

In this paper, the whole area of China is divided into seven zones and a China type multi-regional multi-sectional social economic model is built. In the present social environment and economy of China, the changes in economic growth up to the 21st century under harsher measures for the amount of discharge of contaminants of CO, SOx and NOx are analyzed, and the pattern by which traffic industry develops is predicted, Also, an optimum solution which leads to efficiency regional development is calculated by considering both environmental comprehensive evaluation and economical development. Specially, the change in the regional economy of western part of China, which has become a topic now, due to the expansion of the transportation system by the infrastructure investment is analyzed. The effect on economy on each area due to the improvement of the comprehensive transportation network, and the nature of influence on the environment are considered. Moreover, the influence on economic growth under the environmental regulation is analyzed.



Application of Grey Relational Analysis and Analytic Hierarchy Process
Chin-Tsai Lin    Yuanpei Institute of Science and Technology
Pi-Fang Hsu     Yuanpei Institute of Science and Technology

This study develops a novel model to help select advertising agencies.  The proposed model comprises of two stages.  The first stage adopts the "Analytic Hierarchy Process (AHP)" to determine the relative weights of initial criteria and then applies the "Grey Relational Analysis (GRA)" to produce a shortlist of agencies.  The second stage applies the "AHP" to rank the shortlist and select the ideal advertising agency for advertisers.  While extending the Davies' model, the model proposed herein allows advertisers to select advertising agencies effectively, making it highly applicable for academia and commerce.



Considering the Distribution of Public Facilities in a Land Use – Network Design Model
Jen-Jia Lin     Chang Jung Christian University
Cheng-Min Feng    Chiao Tung University

The sketch map for urban planning represents the rough layout of a physical plan. However, the process of generating sketches has long been viewed as a “black box”. In order to improve the efficiency and quality of layout tasks, Feng and Lin (1999ab) developed the Sketch Layout Model (SLM). This model is a nonlinear and multi-objective programming, which can be used to analyze the integrated layout of land uses and transportation network. Although the SLM had been developed for two phases and can be applied on real cases, it still ignores the constraints of facilities’ service area and the community-type facilities can not be well arranged. In order to analyze all of the important sectors in the physical plan, this study developed the SLM-III by integrating the SLM-II and the Maximal Covering Location Problem (MCLP). This improved model can be used to analyze the integrated layout of land uses, public facilities and transportation network. A numerical example and its sensitivity analysis will be shown to verify the operational feasibility and identify the characteristics of model.



International CO2 Emission Mitigation Policy and Patterns of Economic Development in East Asia
Shih-Mo Lin    Chung Yuan Christian University
Ming-Feng Wu    Chung Yuan Christian University

Economies within the East Asian region have basically followed a common route of development over the past several decades. However, recent years have witnessed that some economies gradually diverge from this common route due to reasons related the development of advanced technologies and specific exogenous shocks and policy changes.

This paper intends to reveal the possible patterns of development in East Asia following the introduction of some specific international CO2 emission mitigation policies, using a multi-region, dynamic computable general equilibrium (CGE) model. The CGE model used is the Global Trade and Environment Model (GTEM) developed by the Australian Bureau of Agricultural and Resource Economics (ABARE). We first identify the historical patterns of development in East Asia by examining some of the trade or competitiveness indices, such as revealed comparative advantage (RCA) index and trade specification coefficient (TSC), calculated from the Global Trade Analysis Project (GTAP) database. Then, we use GTEM to simulate the impact of international CO2 emission mitigation policies on the industrial and macroeconomic variables of the East Asian economies. Finally, we compute the RCA and TSCs for industries in each economy for years beyond the base year, 1995. Comparisons of these indices between industries in each economy and among economies are also made to reveal the possible changing patterns of development in the East Asian region with the implementation of CO2 emission mitigation policies.



Variation of Floor Rent Differentials of High-Rise Buildings
Hsiao-Lan Liu    National Chengchi University
Hung-Chi Chang    National Taichung Institute of Technology

With the rapid urbanization, the demand of office floor space is also increasing.  Although, the high-rise building is very common in the urban area, the study of the rent of different story of high-rise building is relatively rare.  Liu (1988) and Grimaud (1989) have applied agglomeration economies to study the density distribution in the urban area separately, but their studies assumed that the floor rent in the same building is the same, even on different stories.  This assumption about floor rent may not fully reflect the actual floor rent, as we should consider the formulation of floor rent of high-rise building and the effect on density distribution from the perspectives of theoretical completeness and practical usefulness.

This paper extends the Fujita and Ogawa’s locational potential function (1982) into two dimensions -- flat dimension and story dimension. The revision of locational potential function will then be applied to revise the Liu’s model.  Finally, the office distribution and office rent distribution on the different stories the in the CBD (central business district) will be discussed in the paper.



An Analysis of Social Economic Impacts of Hangzhou-Ningbo Expressway in Zhejiang Province of the People’s Republic of China
Louie Nan Liu    Zhejiang University

Transportation has been the basic industry in China’s national economy, the connection between production, distribution and consumption, and important chain to link up cities and countryside and to facilitate people’s living. Thus, it has played a significant role in the national economy and the social development. In recent ten years, expressways have been developed rapidly in China. By the end of 1999, expressways in China have reached over 11,000 kilos, ranking the 4th in the world. The building of expressways in China is the objective requirement in order to meet the increasing passenger and freight volume and the important condition to solve the mixed transportation, to enhance the mobility of automobiles, to improve investment environment and to promote economic growth.

This paper uses quantitative methods to analyze social economic impacts of Hangzhou-Ningbo Expressway (called HNE hereafter) in Zhejiang Province of China. Zhejiang Province, which is located in southeast coastal regions in China and just south to the Shanghai Municipality, is one of the most developed Provinces in China. HNE is the first expressway built in Zhejiang Province and was opened in December of 1996. HNE connects three important cities, which represent three respective regions in Zhejiang Province. Hangzhou City, which is the upper and beginning point of HNR, is the capital of Zhejiang Province. Shaoxing City, located in the middle point of HNE, is famous for its textile industries, the largest in China. The lower and ending point of HNE is Ningbo City, an important and highly open seaport city facing the Pacific Ocean. The opening of HNE has certainly generated significant impacts on the social economic development along the way. However, many of these positive effects have not yet been analyzed and assessed in a quantitative way. This paper attempts to evaluate social economic impacts of HNE and provide some policy implications for the Zhejiang provincial government’s transportation decision making.



Fiscal Decentralization: Its Impact on Cities Growth
Raksaka Mahi    University of Indonesia

Indonesia currently adopts a new decentralization policy. In the past, central government had been the major role of regional and cities development. With the new policy, central government has transferred its role in developing cities and regions to the local governments. This policy adopts two complimentary laws. Law No.22/1999, which is basically the devolution policy, has been accompanied by Law No.25/1999, which basically is the fiscal decentralization policy. Both laws reflect that decentralization policy in Indonesia has adopted the concept of “money follows functions”.

Before the implementation of decentralization policy, the government of cities had been benefited from many facilities built by central government on the city area. With the decentralization policy, it is expected that a reduced role of central government will have a significant impact on the growth of cities in Indonesia. The policy has three major fiscal instruments; a block grant funding, a specific grant and revenue sharing. The block grant funding is considered as the most important instruments of fiscal decentralization in Indonesia. About 80 percent of financial transfer from central to local governments will be in the block grant type of transfer. In the past, the use of transfers was determined by central government specifically. Therefore, the role of block grant was very minimal. With the new fiscal decentralization scheme, the benefits of cities from central government investments are expected to decrease. Therefore, there is a question to what extend the cities will be sustainable in the decentralization era.

This paper attempts to answer the impacts of current fiscal decentralization policy on the growth of the cities. The first objective of the paper is to evaluate the current method of allocating block grant transfer to cities. Secondly, by utilizing a regional macro-econometric model, this paper also elaborates the implication of the block grant transfers to the city growth and interregional disparity in Indonesia.



Economic Impact of the University of Hawai’i System
James Mak     University of Hawaii, Manoa
Ping Sun Leung    University of Hawaii, Manoa
Jeffrey Brown    University of Hawaii, Manoa
Marcia Sakai    University of Hawaii, Manoa

Higher education has both individual and economy-wide impacts.  It is well known that higher education yields financial benefits to students directly.  Spending on education can be seen as an investment in “human capital” that potentially yields a return in higher lifetime earnings.  This is because higher productivity of college-trained workers enables their employers to pay them higher wages.  The growing differential in wages received by skilled and unskilled workers in America in the 1990s suggests that the benefit of getting a college education and/or more job-related training is growing.  Cumulatively, the higher earnings of college graduates add up to higher future incomes and output for the entire economy.  Also, research that leads to new knowledge and inventions can create new industries or improve productivity in existing industries.   In other words, investment in higher education contributes to economic growth.

In this report, we first measure the contribution of higher education to economic growth in Hawai‘i since statehood (1959).  We then summarize the results of the first systematic attempt at measuring the economic impact of the University of Hawai‘i system (UH) on Hawai‘ì’s economy.  The study focuses on both the short-run and the long-run economic impacts of the University Hawai‘i.  The short-run analysis assesses the economic size of UH in relationship to the rest of the economy and ascertains how UH education-related spending impacts the local economy.  The long-run analysis assesses the rates of return to the student (private return) and to Hawai‘i taxpayers in their investment in a UH education.



The Interactions between Transport and Land-Use and Their Modelization
Sophie Masson    Université Lumière Lyon 2

Within the framework of the evaluation of the policies of urban transport, this paper proposes a tool of decision-making aid. Whereas do not cease increasing the urban congestion and the costs of construction of the new infrastructures, the economic capacity of expertise in the field of the urban transport evolves little. Thus it appears necessary to reinvest the field of economic assessments of the urban transport projects and to revisit their methodology.

The evolution of urban transport and the debates around the projects of infrastructures of transport as well as the lines of tram in the great agglomerations raise questions such as: How to answer the increase in the congestion of the road transport in the cities? Which alternate tools with the realisation of infrastructures, whose cost is high, such as urban toll and the paying parking, can be use in order to manage the congestion? Which are their impacts on the long-term development of the agglomerations? This paper proposes to present a tool able to evaluate, in a relevant way, the effects of policies of transport on the system of travel. This model tries to exceed the limits of the traditional forecasting models of urban transport. Indeed, the traditional models of transport consider causality transport - urbanisation only in one direction: the pattern of the population and the activities conditions the formation of travel but the urban structure is a data which the offer of transport does not intervene, whereas in the duration, the interaction is obvious. Our model takes into account the interaction between land use and transport. In a first part, we will present the theoretical and methodological bases of the model. In a second part, we will expose the results and the lessons of simulations according to contrasted assumptions of economic and urban growth and of various transport policies.



The Evolution of the Silicon Forest: A Case Study of the High Technology Industry in Portland, Oregon
Heike Mayer    Portland State University

Most case studies of successful high technology regions have pointed to the critical role of research institutions and universities for creating a thriving high technology industry.  The Portland region has managed to host a thriving high technology industry despite the lack of this critical factor.  Does the Silicon Forest constitute a different model of high technology development?  If so, what kind of regional innovation system does the Silicon Forest constitute?

The paper is based on a case study of the development of the high technology industry in Portland, Oregon, in the last 30 years.  A qualitative analysis of data gathered through interviews with key economic actors is complemented by the quantitative analysis of secondary data such as economic census, patent data, as well as firm-level data.

The researcher hopes to show that vibrant high technology regions can develop in the absence of major research institutions.  In the case of the Silicon Forest, large firms played a pivotal role and functioned as surrogate universities.  Future case studies on and policy suggestions for high technology regions should be sensitive to unique historical circumstances and evolutionary industry dynamics.



Human Capital, Higher Education, and Graduate Migration
Phillip McCann    University of Reading
Stephen Sheppard    Williams College

Understanding the determinants of labor mobility and the relation between mobility and the level of human capital is of central importance in evaluation of possible policies to encourage local development and growth. Some aspects of this relation remain poorly understood. We examine the determinants of an individual's choice to acquire human capital locally or away from their original domicile, and to embark on either a wider job search and subsequent mobility or to remain near (or return) to the area where they resided prior to higher education. We use this analysis to disentangle the impact of the distance moved from domicile to higher education from that of the quality of the human capital itself.
We identify at least three main reasons why economists and policy makers should be concerned about the relation between choice of location to acquire education, the quality of the human capital formed in the course of the education, and the subsequent mobility behavior of the individual. First, these issues are central to the efficacy (or lack thereof) of policies that seek to encourage local human capital accumulation and local growth through the provision of higher education. Second, understanding this relationship provides for a more nuanced understanding of the impact of education on labor mobility and adjustment in the labor market. In particular, it is not simply the amount of human capital produced, but how (and where) it is produced that is important in determining the eventual levels of flexibility in the labor market. Finally, the impact of education on mobility provides information about the spatial structure of benefit spillovers, and helps to identify the level of government that is appropriate as a source of funding and decision-making concerning public support of higher education.

We present a model that examines in detail the dual search processes that determine the eventual pattern of mobility observed: the search by the new graduate for employment and the search by firms for new workers. We derive the comparative static properties of these models and find conditions under which an increase in graduate quality would lead to more extensive searches. Based on these results we present a series of four conjectures about the determinants of mobility among recent graduates from higher education.

We utilize a large and extensive data set to test these conjectures, correcting first for the selection that occurs when individuals with unusually high mobility costs (or strong access to informal labor market networks) choose not to conduct full and comprehensive searches for employment. Conditional on the individual being in the class of searchers, we find some confirmation for all of our conjectures and very strong confirmation for at least two of them. Higher quality human capital exhibits enhanced labor mobility after graduation, and the lower mobility costs that are revealed by greater willingness to move from domicile to higher education is associated with significant increases in mobility after graduation.



Flat Rate vs. Two-Part Tariff: Efficiency in the Pricing of Telecommunications
Hitoshi Mitomo    Waseda University

A flat rate has drawn much attention as an inevitable tariff system to promote the use of telecommunications.  Especially in the case of dial-up Internet connection, people re more sensitive to the charges because they have to pay telephone charge in addition to access charge to a provider.  Although users prefer a flat rate to two-part tariffs, it seems less efficient in an economic context.  This paper aims at examining the efficiency of these different pricing schemes.  Firstly, I consider four biases that exist among users in favor of a flat rate.  There is, however, more fundamental reason why people prefer a flat rate: a distribution aspect of economic surplus.  Formulating a mathematical simulation model for deriving an optimal tariff for telecommunications, it is shown how the change in tariffs from the optimal two-part to a flat rate affects market indices, such as traffic volume, subscription rate, supplier's profit, consumers' surplus and total surplus.  The result suggests that, even if the biases exist, a flat rate tariff can increase traffic and raise consumers' welfare while supplier's revenues are seriously reduced.



Urban Development in High Amenity Regions: The Case of California’s Sierra Nevada
Frank G. Mittelbach   University of California, Los Angeles
Dennis Wambem    Land Use Economics

This paper analyzes the ongoing transformation of the High Sierras (which encompass the Sierra Nevada, plus adjacent mountain areas) from a primarily rural, resource extraction, and tourist oriented region to its incipient and projected urban focus.  We examine the sources and consequences of urban growth and the conflicts these create.  We also report on ongoing and proposed policies and measures to limit or mitigate the negative side effects of urban development with particular reference to the water supply systems, forest lands, bio-diversity, and the recreational resources.  In the process we evaluate successes and failures in meeting new and traditional roles and especially in realizing a high priority objective of maintaining the region’s attractiveness for the large and growing number of visitors from the United States and abroad.



Interregional Trade Modeling in A Spatial Computable General Equilibrium Model
Toshihiko Miyagi    Gifu University
Yoshifumi Ishikawa   Fuji Tokoha University

Interregional trade modeling in a spatial computable general equilibrium is extremely important in the evaluation of investment in transportation infrastructure such as roads. Miyagi, et al. made the evaluation of the transportation infrastructure possible by linking transport time to trade coefficient directly in the past study. But the production structure of transport sector was not taken into consideration in the modeling, and there is a problem that transport margin is determined exogenously.

In this study, we pay attention to the influence on transport cost by the improvement in transport service level, present a new interregional trade modeling in a spatial computable general equilibrium model. First of all, we discuss several ways of interregional trade modeling in spatial computable general equilibrium models. In addition allowing for the production structure of transport sector, we present a spatial computable general equilibrium models. Then, we analyze impacts of a highway using the model proposed in this study.



A System for Integrated Environmental and Economic Accounting with Environmental Dynamics
Yuzuru Miyata    Toyohashi University of Technology
Aijun Li     Toyohashi University of Technology

A System for Integrated Environmental and Economic Accounting (SEEA) advocated by United Nations (U.N. 1993) is spreading over the world as a statistical concept that indicates a true welfare index of a country incorporating environmental burden on her economy. In Japan, specifically, SEEA has already been estimated by Economic Planning Agency, the Government of Japan (1995) leading Japan to one of the most advanced countries in this field.

One may observe that the estimation method of SEEA has been emphasized, however, some ambiguous concepts may be found in the guideline of the U.N. including, for example, the valuation of environmental damage caused by economic activities. According to the U.N., the economic evaluation of environmental damage should be made by the so-called ecological valuation, that implies the costs which would be necessary to keep environmental resources intact. And in empirical estimation, avoidance or restoration cost is proposed to value environmental degradation. It is, however, obvious that avoidance and restoration costs never coincide with each other in non-reproducible environmental stocks.
Thus estimation method and economic implication of SEEA should further be examined from the viewpoint of economic theory. Among others in this point, Hartwick’s (1990) and Mäler’s (1991) studies may particularly be worth pointed out. Hartwick considered a closed economy with natural resources in an intertemporal framework, and derived a net national welfare index taking account of the environmental externalities. Following Hartwick’s approach, Mäler studied a similar model and showed a derivation of a SEEA from a social dynamic optimization problem. More concretely speaking, the Hamiltonian introduced in the intertemporal optimization problem can be regarded as a net national welfare index naturally yielding the SEEA. It should, however, be noted here that Weitzman (1974) firstly pointed out the derivation of net national welfare index under intertemporal optimization framework prior to others.

This study basically follows Mäler’s formulation, but significantly differs from his study in the following points. First, two kinds of species in an ecosystem are introduced as environmental stock resources. In the ecosystem, competition between the different species is explicitly specified, indicating natural environmental dynamics in the populations. Second, a number of minor mistakes in Mäler’s paper are revised, and the ad hoc approximation of utility function in Hartwick’s paper is improved by assuming a linearly homogeneous utility function to implement more rigorous analysis. Finally, a new environmental evaluation, which completely differs from the economic valuation, is proposed for the ecological dynamics.



A Study of the Optimal Tax-Subsidy Policy for Air Pollutants Emission Reduction in Japan
Takeshi Mizunoya    University of Tsukuba
Katsuhiro Sakurai    University of Tsukuba
Yoshiro Higano    University of Tsukuba

In this study, we question the implementability of the Kyoto Protocol. It is estimated that the Japanese economy should have had reduced the emission level of the air pollutants by 23.4% from the actual level in 1997 in order to acheive the standard given by the protocol and we show the extent to which we were able to reduce the emission of the air pollutants (CO2, SOx and NOx) in 1997.

We present an input-output model which determines the optimal level of economic activities and their optimal emission of air pollutants, so as to maximize the welfare function being subject to the emission standards of the air pollutants with respect to the emission taxes. We also formulate a model of the total environmental economic system, which controls the air pollutants emitted by not only industries but also by households. The fundamental ground of the model is the non-linear dual system of the input-output analysis.

It has been shown in this research that the emission taxes themselves alone are not effective enough for reducing the emission of air pollutants sufficiently. Contrary to the advocacy, technological progress in the abatement of air pollutants is needed to achive the standards set by the Kyoto Protocol.



The Evaluation of Technologies and Economic Policies to Improve the Water Quality of Lake Kasumigaura
Takeshi Mizunoya    University of Tsukuba
Katsuhiro Sakurai    University of Tsukuba
Yoshiro Higano    University of Tsukuba

The quality of water in Lake Kasumigaura has been deteriorating since the 1970’s by the pollution discharged from socio-economic activities of the catchment area. As a result of construction of a sewage system, and enaction of an ordinance to prevent the environment by the government, water quality of Lake Kasumigaura has improved to some extent, but the process of deteriorating is still continuing. Recently, many engineering groups are working to develop technologies in order to solve the problem.

In this study, we analyze a dynamic optimal policy and evaluate technologies to improve the water quality of the lake, considering both - the total ecological system in and around the lake and the situational changes over a certain period of time.

We specify two sub-models (the ecosystem model and the socio–economic model) and one objective function (GNP) in order to analyze the optimal policy to improve the water quality of Lake Kasumigaura. The ecosystem model describes how the amount of generation and flow of pollutants are changed and the extent to which it is abated by removal equipments in the lake and the rivers. The socio–economic model describes the social and economic activities in the catchment area and the relationship between the activities and the emission of pollutants. The optimal policies are derived so as to maximize the objective function (GNP) subject to the structural equations which describe both the ecosystem and socio-economic system.

The pollutants measured in this study are nitrogen, phosphorus and COD. These have been strongly affecting the deterioration of water quality.



The Economic Impact of the Cruise Industry on A Regional Economy
John M. Munro    Simon Fraser University
Warren G. Gill    Simon Fraser University

There is a substantial literature on the economic impact of tourism on regional economies.  This literature emphasizes the spending of tourists on accommodation, meals, sightseeing and other retail goods and services and uses various techniques of economic impact analysis to assess the impact of tourism.  Despite the growing popularity of cruising, there has been much less study of the impact of the cruise industry on the ports that it visits and the regional economies that surround them. The cruise industry might seem to offer less regional economic impact than shore-based tourism because the main expenditure items, accommodation and meals, are provided on board, not in the local economy. While this may be true for ports of call during cruises, for cities that are terminals for cruise ships the potential economic impacts are much larger.

This paper examines the impact of the Alaska cruise industry on the economy of Vancouver and Western Canada.  Vancouver is the major terminal for these cruises and served almost 600,000 individual passengers (producing over 900,000 embarkations/debarkations) in 1999.  Spending by passengers, crew, and the ships themselves is evaluated over the last five years using standard multiplier and input-output techniques.  In addition, consideration is given to the development of the Alaska cruise industry over the last 35 years and its changing economic relationship with the Vancouver regional economy.



Tourism Advertising Expenditure Impacts on a Regional Economy
Tom Murphy    Charles Sturt University
Eddie Oczkowski    Charles Sturt University
Guy West     University of Queensland
Hazbo Skoko    Charles Sturt University

The announcement of the closure of the Pasminco Broken Hill Mine in inland Australia in 2006 confirmed the need to diversify the Broken Hill economy.  Expanding the tourism industry is considered to be one alternative.  This paper models domestic tourism demand with particular emphasis on the elasticity of tourism advertising expenditure.  The modelling found that on average a one-dollar increase in advertising expenditure is associated with 1.36 additional visitor nights after a lag of two years.  However, the estimates have wide confidence intervals with a 70% probability that increased advertising expenditure will have a positive impact on visitor nights.  The paper also estimates the impact of increased visitor nights on the Broken Hill economy using marginal income coefficients.  Combining the domestic tourism demand model with the impact analysis provides a methodology for estimating the impact of increased tourism advertising expenditure on the Broken Hill economy.



What If Immigrants Had Not Migrated?  Determinants and Consequence of Korean Immigration to the US
Dowell Myers    University of Southern California
SeongWoo Lee    Seoul National University
Seong-Kyu Ha    ChungAng University
Hae Ran Shin    University of Southern California

Despite rigorous theoretical arguments and models about international migration, very few empirical studies put it to rigorous test in explaining international migration.  The purpose of the present study is to analyze determinants and consequences for international migration, focusing particularly on the returns to post-hoc international migration.  The present study compares residential well-being of Korean international migrants in the US with those of hypothetical well-beings of them if they had not migrated.  Our suggested models of the selectivity-corrected returns to various characteristics for immigrants and non-immigrants enable us to estimate the ‘opportunity well-beings’ of individuals and households; that is, the well-beings of immigrants-had-they-stayed and of non-immigrants-if-they-had-immigrated.  The data for our analyses are drawn from the 1990 Korea Census Data and the Public Use Microdata Samples (PUMS) of the 1990 U.S. census.  The results show that the predicted probability of homeownership attainment among Korean increases by migration 15-16 percent for women and 8 percent for men.  In either case of migrants-had-they-stayed or if non-immigrants-if-they-had-migrated, international migration to the US has a positive effect on the homeownership probability.  Especially for women, migration has a significant and positive effect on their probability of homeownership attainment.  The study concludes that the United States offers better opportunities for owning their home than stay at Korea particularly for women.



New Types of Industrial Cluster Development in the CBD: The Case of Cheonggyechon Customized Production-Distribution-Shopping Cluster in Seoul, Korea
Kee-Bom Nahm    University of Seoul
Hee-Soo Chung    University of Seoul

This paper introduces a new type of industrial cluster developed at the CBD of Seoul.  Conventionally, clusters are said to be consisted of hi-tech, often IT activities, manufacturing industries or artisan craft industries with increasing vertical integration and performance usually supported by venture capitals and favorable business infrastructure, not to mention governments; be it central or local, incentive plans.  The study area, Cheonggyechon region has long been a traditional CBD frame of Seoul, Korea, being troubled by deterioration, traffic jams, and environmental degradation as most inner cities experience.  Recently, this region has developed the most dynamic and productive area not by IT industries but by apparel and fashion activities.  The study of the developmental trajectory and key characteristics for this kind of industrial cluster can give us insight both for the transition of inner city and for the cluster theory.  This paper firstly briefly profiles the growth of the Cheonggyechon region over the past decade.  It then shows the current spatial and business structure of the new industrial cluster, focusing on the fact that transactions costs are reduced, the creation and flow of information improves, and the local institutions are prone to be most responsive to the new cluster's specialized needs.  The third section presents the key components of the customized production-distribution-shopping cluster development process, emphasizing the localized networking, social capital, spontaneous institutionalization of associational economic climate, and cultural economy based on place-specific inertia.  The paper concludes with some comments about the prospects and perils of the new industrial cluster of Seoul.



The Study on Tourists’ Decision-Making to Small Islands – A Case of Penghu Islands in Taiwan
Chin-Cheng Ni    National Hsin-chu Teachers College
Chang-yi David Chang   National Taiwan University

Penghu, formerly known as the Pescadores Islands by the European, is located off the western coast of Taiwan. Owing to its abundant recreational resources and low level of development, Penghu is very suitable for tourism development. Through participation observation and questionnaire survey, we can obtain accurate information about the specified decision-making of tourists. Analyzing the mechanism of tourists’ decision-making, we can find the two facts. One is that the ‘individual’ tourist has a dominated factor to decide whether to go, including experience, accompanies, or time etc… The other is that the tourists ‘group’ has the most important purpose to act out, so the analysis on acting purpose and coordinator is very meaningful. One of the research findings is that island destinations, Penghu islands, are usually located on the lower priority to travel for mainland Taiwan’s tourists, because their sites are remote. For some tourists, they take tours also influenced by the political, economic, or social policies and events while had been just happened. Finally, we compare the differences between ‘one more spatial movement’ and ‘one more visiting intention,’ the former is really benefit for the tourism resource management in Penghu.



Urban Fingerprints and Spatial Footprints in Sustainable Urban-Rural Development
Peter Nijkamp    Free University
Adele Finco     Free University

Current urbanization trends have far-reaching consequences for rural areas (often called the ‘hinterland’). The economies of density generated by urban agglomerations created also many negative externalities, not only inside these agglomerations (e.g. congestion), but also in a wider setting (e.g., as a result of resource provision to cities by rural areas). This also means that the notion of a sustainable city may be based on rather restrictive assumptions, if the broader geographical spillovers are not accounted for.

The paper aims to offer a broader framework for spatial externalities by referring to the urban-rural nexus as a tension between agglomeration economies and depletion of rural resources. The concept of ecological footprint is introduced and critically reviewed. Despite some weak elements in measuring such spatial footprints, this concept has some appealing features which render it attractive for monitoring and policy purposes. The feasibility and manageability of this concept is further tested on the basis of an empirical study of ecological footprints in one of the Italian regions, the Marche area. The paper is concluded with some reflective remarks.



The Last Word on the Wage Curve? A Meta-Analytic Assessment
Peter Nijkamp    Free University Amsterdam, The Netherlands
Jacques Poot    Victoria University of Wellington, New Zealand

During the last decade there has been extensive international research on the extent to which wages of individuals respond to changing local labour market conditions. For many countries and time periods, an inverse relationship between wages and unemployment rates has been found. Following Blanchflower and Oswald (1990), this relationship is referred to as the wage curve. The elasticity of this wage curve is so similar across studies, at a level of about -0.1, that Card (1995) calls it an “empirical law of economics”.  However, at a more disaggregate level, a greater variation in results is found. This paper carries out modern meta-analytic techniques on about 200 elasticities derived from the literature to uncover the reasons for the differences in empirical results across studies. The techniques include descriptive classification, meta-regression analysis and rough set analysis. The influence of institutions and the spatial level of analysis on wage curve estimation are also investigated. Corrections are made for publication bias.  It is found that the wage curve is a robust empirical phenomenon.



Labor Absorption Paradox in China’s Long Term Development
Makoto Nobukuni    Nagoya City University
Suminori Tokunaga   Nagoya City University
Yao Haitien     Nagoya City University

In the current economic development pattern of China there is built in the paradox of growth in labor absorption: the higher the growth rate of real sector, the less of labor force will be employed, at least in the relevant range of development stage. While the underlying mechanism of this paradox is more or less universal in the developing economies, the combination of the causing factors in China reverses the direction of the net effect of real growth on the absolute labor force absorption. This paradox manifests itself in a severer degree in the less developed West, one of the major concerns of the long term development of China, and calls for modifying development strategies and/or implementing structural policies to change the relationship between the real sector growth and labor absorption capacity.

The findings in this paper are based on a PERT-econometric model specifically designed for development planning focusing on typically Asiatic economies. An application of the model to China’s economy reveals that, if labor absorption shortage is adequately managed through appropriate policy intervention and favorable investment environment is maintained, China can meet the capital investment requirement of about 30% in investment rate to reach $3,500 per head by 2,030.



Impact of the Aging on the Local Finance: The Case of Nagoya City
Makoto Nobukuni    Nagoya City University
Suminori Tokunaga   University of Tsukuba
Hitoe Ueyama    Nagoya City University

In this paper, we analyze impacts of the aging on the local finance in the Nagoya City, using a  simultaneous econometric model (Nagoya City 2000 Model). The analyses are based on simulations for a prediction period of 1998-2010, using the cohort data of 1975-2010.



An Inter-Urban Transportation Network for a System of Compact Cities
Makoto Okumura    Hiroshima University
Makoto Tsukai    Hiroshima University

A compact city (a city of enough size and density to support public transportation and other public service) has come to be considered as one popular target of urban and regional planning.  There are many studies about internal density structure of a compact city, but we need to show the efficient city size as well as the internal structure.  In the age of globalization most of the urban economic activities do their business based on several inter-urban interactions and then the scale economy is strongly affected by accessibility and other geographic condition of that city in mutually interacting city.  Therefore size of each city can never be determined by herself (rather is determined as an equilibrium point of the system of cities).

If there is one large capital city and many other small cities in a country inter-urban interactions are almost limited between the capital-peripheral connections.  On the contrary when there are many middle size (compact) cities distributed in the country space not small amount of interactions are expected in many city pairs.  In other words there is a trade-off between the compact intra-urban transportation service and the required volume of inter-urban transportation system.



Spatial and Temporal Impacts of Natural Disasters: A Sequential Interindustry Model Approach
Yasuhide Okuyama   University at Buffalo
Geoffrey J. D. Hewings   University of Illinois
Michael Sonis    University of Illinois

Regional economic models have been challenged to incorporate with structural changes in the economy.  Especially, when a structural change is sudden, unpredictable, yet extensive, such as damages from a natural disaster, conventional models can hardly confront such significant changes due to their assumption of incremental changes.  Sequential Interindustry Model (SIM) is an extension of the input-output framework that enables to trace the production process and the path of the impacts.  SIM is particularly useful to simulate the dynamic process of impact propagation and of structural changes after a catastrophic disaster.  In this paper, the issues and extensions of SIM are discussed with numerical examples.



Dynamic Stability of Multi-Central Urban Model
Mitsuru Ota      University of Tsukuba

Part of the problem in location theory is how and to what we can make apply the general equilibrium models of the city to give explanation for the Urban Restructuring and Transformation in metropolitan areas.  We develop a general equilibrium model of the city, in which each firm consists of two units of different sectors. The equilibrium spatial configuration of the city is determined as an outcome of interactions among all firms and households through competitive land and labor markets. We show that depending on parameters, a variety of interesting patterns of metropolitan spatial organization emerges and existing multiple equilibria. We also introduce a dynamic adjustment process of configurations of the city which has multi-central.



Understanding and Overcoming the Obstacles to a Productive U-G-I Alliance in Science Parks: A Case Study of South Korea
Jong Hwa Park    Kyungpook National University

As new modes and efficiencies in telecommunications and transportation make the worlds grow ever smaller, the global economy, and its global markets, are increasingly viewed as the exclusive domain of power-hungry multi-national corporations. There is, however, a growing argument that science park is an useful instrument to build up and strengthen a productive University-Government-Industry (U-G-I) alliance in today’s globalization.

This paper attempts to analyze the obstacles to a productive U-G-I alliance in Korean science parks. The definition and inception of science parks, and the contribution of science parks to national and regional economic development are discussed with regard to a productive U-G-I alliance. Most attention has been directed toward understanding the obstacles to a productive U-G-I alliance and exploring alternative strategies. Data are collected from census publications, research reports on science parks, and web page materials. Face-to-face interviews and questionnaires will be conducted. The analysis is qualitative as well as quantitative.

Preliminary findings of my pilot study reveal that science parks are indispensable part of industrialization and national development policies in Korea. The Korean government introduced the development of science parks as a major component in the latest national development plan. Indeed, spatial concentration of R & D activities is a prerequisite for achieving external economies of scale in the knowledge-based economy.
The high standards of physical setting of science parks provide the necessary environment and amenities for developing such a concentration. Further, science parks are an experimenting ground to forge a close and productive U-G-I alliance. It is, perhaps, the greatest challenge to local government to design innovative policies in order to use science parks to promote regional and local development.

To this end, this study is going to explore the major obstacles that affect a productive U-G-I alliance in science parks.



Economic Spaces in Pacific Rim: Paradigm Shift and New Dynamics
Sam Ock Park    Seoul National University

The organization of economic space has been one of key issues in regional science and economic geography. Thunenian model of agricultural and use, Christaller’s central place theory, Loschian location of economics, and Isard’s space economy were all dealt with the organization of economic spaces. In these classical or neoclassical models of economic space, focus was given to the regional or at best national space and distance/transportation cost was the critical factor for the organization of economic space. With the continuous decrease of transportation cost and increasing complexity of the organization of economic space, the traditional models of the economic space have not been much interested during the last two decades. Some scholars attempted to understand the organization of economic space with regard to globalization, industrial restructuring, labor market, political economy, and so on in a broader space, others tried to focus on the process of local economic growth or localization of industry. However, in the last decade, the neoclassical approach to the economic space has been revived in a circle of economics with their emphasis on the region or space in the economic rationality.

The processes of shaping economic spaces have been diverse by regions and times. New dynamics of economic spaces in the globalizing world economy have been well recognized during the last decade at local, regional, national, and global levels by emerging new industrial spaces or “sticky places in a slippery space”, trading blocs, and the shift of economic gravity center. These new dynamics are closely related with paradigm shifts in labor, production system, industrial organization, finance, and consumer behavior. The dynamics will be reinforced with the development of information and communication technologies (ICT), progress of the knowledge-based economy, and restructuring of global economies in the first decade of the 21st century. Disparities and inequalities at regional and global level seem not to be reduced even in the globalization and the development of the ICT. Broader frameworks for understanding the new dynamics of the economic spaces and sustainable development strategies are required in the knowledge-based economy.

In this paper, major processes and factors of the dynamics of economic will be examined focusing on the Pacific Rim area. Technology, knowledge, globalization and environment are regarded as four major dimensions of the dynamics of economic spaces in the new century. Networks, social capital, production systems, industry-environment relationship, foreign direct investments (FDIs), and broader service economy including e-business will be considered as major forces of the new dynamics of economic space in the globalising world.



Chile Chasing Tigers
Jorma Pietala    Helsinki School of Economics and Business Administration

The most sustained and dynamic Newly Industrialized Countries (NIC) outside Europe locate in East Asia and in Latin America. The selected countries in this article are Singapore, South Korea and Chile and it describes the impacts of choosing an export-oriented (EOI) strategy in the national economy, instead of the traditional alternative, which emphasizes import substituting (ISI) strategy and protection. The review of the economic development in 1990s shows that chosen countries have surpassed the Asian economic crisis very successfully. Singapore and Chile had a policy or program to broaden the economic base and to increase the efficiency and competitive advantage of the nation. Both countries are an example of proactive and rapid reacting to the fluctuations in the international economy. In addition, Singapore expresses unprejudiced planning of investments in the new network and globalized economy. The most ridig structure of industries is in South Korea. Though the country is recovering rapidly, it has caused delays in reshaping the industry, privatization and a smaller flow of foreign direct investments to the country.



Small Sample Properties of Estimators Relating to Spatial Models Containing Both Spatially Lagged Dependent Variables and Error Terms
Ingmar Prucha    University of Maryland
Debabrata Das    University of Maryland
Harry Kelejian    University of Maryland

 The paper investigates the small sample properties of estimators for spatial autoregressive models where the disturbance terms may follow a spatial autoregressive process.  In particular, we investigate the small sample behavior of the feasible generalized spatial two stage least squares (FGS2SLS) estimator introduced by Kelejian and Prucha (1998), the maximum likelihood (ML) estimator, as well as that of several other estimators.  We find that the FGS2SLS estimator is virtually as efficient as the ML estimator.  This is important because the ML estimator is computationally burdensome, and even forbidding in large samples, while the FGS2SLS estimator is computationally simple regardless of the sample size.



Migration in Gaza Province: A Case Study of Chicualacula District
Ines Raimundo    Witwatersrand University

Urbanisation and migration in Mozambique has raised many debates on the relationship between population and social economic development (Araujo, 1988; Fair, 1990; Lattes 1990; Hussein 1993).  Statistics indicate that nearly 1/3 of Mozambicans live in urban areas (UPP/DNE, 1991).  According to the 1980 and 1997 census urban population in Mozambique has escalated from 13.2% in 1980 to 27% in 1997 (INE, 1999).  Although the causes for rural urban migration in Mozambique have been attributed to harsh socio-economic environment of rural areas, of recent natural hazards such as droughts and floods have become increasingly important factors (Araujo, 1988; ACNUR 1990; Fair, 1990).

Post independence Mozambique have seen the creation of several forms of settlements, 'collective villages', 'green areas', and 'communal districts', to accommodate urban migrants (Friedmann, 1981; Hanlon, 1986; Araujo, 1988).  However, the lack of infrastructures, war and some ecological problems has seen these projects wax and wane in rural Mozambique.  Consequently, there have been an increasing number of people migrating to the cities and neighbouring countries with their attendant problems (Friedmann, 1981; Araujo, 1988; Covane, 1996; Neves, 1998).  This research aims at analysing the pattern of migration in Chicualacuala District in order to contribute and recommend on the management of population movements.  The objectives are focused on analysing the main causes of migration and to evaluate the preferences in terms of destination.  To achieve these goals, various research techniques were used to collect the data.  They include, review of relevant literatures, field survey, questionnaires, formal and informal interviews.

The period of study was 1992-1997, after the Peace Agreement and the General Population and Housing Census.  According to the research findings, between 1992 and 1997, 39.4 per cent of Chicualacuala population migrated to cities as temporary workers, searching for jobs, schools and greener pastures.



River Water Pollution in Indonesia: An Input-Output Analysis
Budy P. Resosudarmo   University of Indonesia

During the 1980s and 1990s, before the economic crisis, Indonesian economy grew relatively fast.  The main reason for this high economic growth was that the industrial sector grew with an annual average rate above 8 percent.  However, the rapid development of this industrial sector created several environmental problems.  One of the important environmental problems is the river water pollution.

The goals of this paper are (1) to review the river water quality condition and policies in Indonesia, (2) to determine the impact of policies in reducing river water pollution on the economy, (3) to develop strategies in controlling river water pollution in Indonesia.

The result shows, among others, that Indonesia should concentrate in cleaning river water pollutants from (1) Sugar factories and refineries, (2) Meat product, (3) Grain mills product, (4) Spinning, weaving & finishing textiles, and (5) Nonferrous metals industries.  They are relatively heavy polluters and the cost cleaning river water pollutants from those sectors are relatively cheap.



Consensus Industrial Clustering
Sergio J. Rey    San Diego State University
Daniel J. Mattheis    San Diego State University
Young-Sik Kim    San Diego State University

Industrial clustering has attracted an extraordinary amount of attention in the economic development literature. Much of this attention has focused on the role that industrial clusters play in regional economic growth. Methods for identifying industrial clusters have received comparatively less attention. This paper examines existing quantitative and qualitative approaches towards cluster identification. We argue that while a number of sophisticated and powerful multivariate approaches have been suggested in the literature, each study tends to focus on a single approach. The cost of such a strategy is that the resulting clusters reflect only a single type of interindustry linkage (i.e., forward, or backward, or complementary), but exclude other poentially important linkages. In this paper we argue that there is a need to consider the utility of combining different approaches, and thereby multiple types of linkages, within the same framework for cluster identification. We outline just such an approach, which we label consensus clustering, and present the results of its application to the case of the State of California and a number of subregions.



Portland and Los Angeles: Beauty and the Beast
Harry Richardson    University of Southern California
Peter Gordon    University of Southern California

In the planning profession, Portland, Oregon, has assumed mythic status in terms of the success of metropolitan planning.  Los Angeles, on the other hand, is decried as the exemplar of urban sprawl, traffic congestion, polluted air, fractured government and a thousand other ills.  This paper introduces empirical evidence to suggest that these polar extremes are false: the inner beauty of Portland is far less than its external image, and the bestiality of Los Angeles is surprisingly benign.

The evidence includes:

i. Portland is much more sprawl city than Los Angeles, with 40% of the latter's density.
ii. Portland Metro (despite its elected officials and its operations, e.g. the Convention Center, the Zoo) has, in practice little more power than the traditional COG (e.g. SCAG).
iii. Travel times in Portland are no shorter, congestion is no better, and public transit ridership is similar to that in Los Angeles.
iv. TODs have not much more likelihood of success in Portland than in Los Angeles.
v. The two metropolitan areas present a relatively striking choice between the benefits of regional government and those of a Tieboutian world.
vi. Portland offers an urban boundary collar mitigated by the possibilities of expansion in Clark County, Washington; Los Angeles offers a wide range of jurisdictions, ranging from lax development options to the requirement of voter-approved developments in some Ventura County cities.
vii. The downtowns are, more or less, irrelevant in both cases.
viii. Suburbanization is the main story in both metropolitan regions.
ix. Portland lacks the multicultural, multiethnic characteristics that makes the Los Angeles region so vibrant.
Portland has been more successful in infill development projects, perhaps because community support outweighs Nimbyism.


Economic Growth and Water Pollution in Barada Basin, Syria: Analysis of the Effects of Industries on the Degradation of Water Resources from a Socioeconomic Viewpoint
Melhem Rimah    Tsukuba University
Yoshiro Higano    Tsukuba University

Barada Basin is one of the main basins in Syria, which contains an important resource of water, Barada River, and where the capital, Damascus, is located. The huge migration from rural areas, illegal settlements, industrialization, and urbanization cause an apparent decrease in the green land and high level of water contamination through discharge of wastewater (domestic, industrial, and agricultural) without any treatment. As a result, Barada River is becoming waste dump turning to its death.  This paper presents a part of my research. First, a primary description for the environmental problems related to water pollution has been explained. Second, the effect of the industries will be estimated by calculating the pollutants loads. Finally, an outline of an optimal feasible policy will be formulated to improve the environmental status of the basin area.



A Study of Spatial Patterns of Suburbanization Processes
Ernan Rustiadi    Bogor Agricultural University

Patterns of city growth and urban development in Asia in many aspects are similar to those in other part of the world.  In Asia however, the demographic magnitude of urban transformation is unusual, due to a rapidly expanding urban systems arising within densely populated countryside.  This trend has been driven by economic expansion and has resulted in extended areas of mixed land use on city peripheries.  A distinctive Asian variation of the usual pattern of suburbanization, so called as desakota region, encompasses both the city itself, with typical urban land use and associated compact and densely settled on sprawling areas that are closely enmeshed with the urban economy.  During this process, the countryside is urbanized without the hinterland population necessarily moving into the city.  Rural economics and lifestyles become submerged under the expansion of urban economic activity and culture, but do not disappear altogether.  This idea of desakota seeks to identify characteristic regions of Asia that are neither urban nor rural, and to combine some of the features of both types of region into a continuously changing symbiotic relationship.

For some extent, the suburbanization processes in Japan's largest cities have some similarities with suburbanization of Indonesia's largest cities, especially in Java Island.  The suburbs are complex entity with mixed land use pattern, direct contact between urbanis (mostly commuters) and farmers, therefore urban-rural dichotomy is not much relevant any more.  This comparative study will try to contrast the significant characteristic of Asia metropolitans compared to such process in Europe and USA.  This study focuses on two largest metropolitan of both countries, Tokyo metropolitan and Jakarta metropolitan (Jabotabek).  The main aspects to be compared are the spatial pattern of population socio-economic activities, and land uses distribution.

The study analyzes some spatial pattern measurements by (1) visualizing spatial distribution of population, economic activities, labor sectors and land uses by GIS, (2) Measuring the speed, direction and other spatial distribution pattern, and (3) Spatial mixture index of economic activities, labor by sectors and land uses formulation spatial mixture indices.



On-Site Trip-Chain Data and Choice-Based Bias Correction
Saburo Saito     Fukuoka University

We have been conducting series of surveys on consumers’ shop-around behavior at city center retail environment (CCRE) for designing an attractive CCRE with a guide of OD pattern estimated from obtained data. The survey is conducted as follows. At several sampling points (shops) selected, samples are randomly chosen from the visitors at these shops to record their shop-around history, i.e., the sequence of shops visited, purposes done, and expense spent there in the order of their occurrence. This is just to collect the shopping trip chain data under on-site sampling. In other words, it is simply the on-site person trip survey, which is a striking contrast to the traditional person trip survey under home-based sampling. While it is a well-known practice to obtain the estimate of OD pattern from trip chain data, Saito, Kakoi, and Nakashima (1999) first indicated that there occur a choice-based bias if on-site trip chain data from different sampling points are pooled to be used to estimate the OD pattern. This paper addresses this problem and demonstrates a new theory of the unbiased estimation of OD pattern from on-site trip chain data to establish a theoretical foundation for on-site person trip survey.



An Optimal Multidisciplinary Policy to Reduce Pollutants in the Catchment Area of Tokyo Bay
Katsuhiro Sakurai    University of Tsukuba
Kenji Hata     University of Tsukuba
Yoshiro Higano    University of Tsukuba

Many factors have made the quality of water deteriorate in Tokyo Bay since the 1960’s. Though national and local governments have implemented many policies for the improvement of the water quality in this area, water quality of Tokyo Bay has not improved sufficiently to reach the standard point. At present, there is no policy to ensure integrated and efficient use of the budget of prefectures or cities to improve the water quality. Therefore, scholars of different fields of study have to take immediate initiatives in order to improve the water quality of Tokyo Bay.

The pollution discharged from Edogawa River and Arakawa River catchment area (which includes Edogawa River, Nakagawa River, Arakawa River and Shingashigawa River) constitute a little more than half of the pollution discharge from Tokyo Bay catchment area. If we can effectively reduce the pollution from these areas, the water quality in Tokyo Bay will improve considerably. In fact, the pollution created by the inhabitants of Saitama Prefecture comes into the Tokyo metropolitan area and Tokyo Bay via these rivers. If we can execute a policy to improve the water quality of not only Tokyo Bay but also of these rivers, it would be more effective than the present policies. As a result, the residents of these catchment areas may agree to ensure the efficient and integrated use of the budget of the prefectures or cities.  The eutrophication in Tokyo Bay is due to pollution (nitrogen, phosphorus and COD) discharged from socio-economic activities and land use of the catchment area. However, our purpose is to reduce pollution without significant cut down of the socio-economic activity level and land use in this area.

In this study, we try to build a model which takes into account of socio-economic activities, land use and the load of pollution (nitrogen, phosphorus and COD) in these areas. We suggest an optimal multidisciplinary policy which can promote sustainable development of Tokyo Bay catchment area from the year 1997 to 2004 by numerical simulations.



Resource Endowments, Externalities and Transport Costs: An Exploration of Alternative Explanations of Regional Production Structures in Mexico
Javier Sanchez-Reaza   The London School of Economics
Jacob Jordaan    The London School of Economics

Traditional trade theories, explaining trade by relative resource endowments, have focused on issues such as country product specialisation, developments in factor prices and the implications for welfare. An important issue which has been neglected is the spatial impact of international trade. However, recent contributions from the new economic geography offer important ideas as to how trade and location of economic activity are linked. One important result is that both concentration and dispersion may be optimum outcomes of firm location behaviour. Such location processes are subject to countervailing forces stimulating either concentration or dispersion, subject to transportation costs.

Mexico offers an interesting case for the analysis of the relative importance of the alternative explanations of production structures in the form of resource endowments, externalities and transport costs. Mexico applied an import substitution policy up until 1985, when this industrialisation policy was replaced by trade liberalisation, further transformed and strengthened by its membership in the NAFTA in 1994. Using panel data analysis, the paper examines to what extent the alternative theories offer explanations for the development of regional production structures in Mexico at the state level, comparing the ex-ante and ex-post trade liberalisation situations.



The Evaluation of Castle Ruins by the Use of the AHP Method in Order to Reconstruct the Castle Tower in the Morioka Castle Ruins
Yoshihiro Sasaki    Iwate University
Akira Ando     Iwate University
Ryuichi Akatani    Iwate University

Recently, the value as tourist attractions of the historical building such as the castle is recognized in the opportunity, and the challenge for the restoration and reuse is conspicuous in respect of municipalism 100th anniversary and erection 400th anniversary of the castle is built.  However, the evaluation of the historical building is often carried out on one's the judgement based on the experience in the expert without limiting to the castle at present, and it is hard to be said that it is done by the objective value evaluation.

Then, this study intends to propose the method of the historical evaluation of the castle by AHP method for the Morioka castle tower restoration under the recognition that the subjective, qualitative, conventional and historical evaluation should give the objectivity for problem, if the AHP method (the hierarchizing decision making technique) is applied.  In this study, the following were selected as research object: Castle in the Recent times in Tohoku district and seven castles of Hirosaki castle, Morioka castle and Shiroishi castle, Yokote castle, Tsurugaoka castle, Aizuwakamatsu castle and Shirakawa castle.



Vertical Connections in the Midwest Economies: The Role of Internal and External Trade
John J.Y. Seo    Regional Economics Applications Laboratory
Geoffrey J.D. Hewings   University of Illinois
Michael Sonis    University of Illinois
David Boyce    University of Illinois

An earlier paper (Hewings et al., 1998), evidence suggested that the Chicago metropolitan region was hollowing out, namely becoming less dependent on internal-to-the-region sources of inputs and sales of products and services.  The findings raised the question about where this spatial dependence had relocated and the current paper explores the process of structural interdependence for the Midwest economy using a REIM (Regional Econometric Input/Output Model) system.  The model examines a spatial division of the US comprising the Midwest with its constituent states of Wisconsin, Illinois, Indiana, Ohio and Michigan shown separately, and the Rest of the US in a six-region formulation.  Based on the flow matrix from the model, a feedback loop analysis is first conducted to identify the spatial geographic structure of trade flows.  This study further examines industrial interdependencies in a sequential production process, by applying Maddigan’s vertical connection index into our multi-region framework with a particular focus on the role of interregional and inter-activity trades.



An Analysis of the Optimal Regional Economy in Japan: The Dynamic Interregional IO Model
Hiroyuki Shibusawa   Toyohashi University of Technology
Takeshi Mizunoya    University of Tsukuba
Yoshiro Higano    University of Tsukuba

In this paper, we examine the optimal regional economic structure in Japan. We develop a nonlinear dynamic regional economic model. Our model is based on the nonlinear dynamic interregional IO Approach. A social optimal problem for the regional economy in Japan is formulated. It consists of 47 regions and 7 industries. Four transportation networks connect each region. The networks are composed of general road, highway, railway, seaway and airway. A social welfare function is maximized subject to the intertemporal constraints of product markets, labor markets, capital markets. We derive the dynamic optimal solution using the numerical method based on the optimal control theory. We also show the optimal regional structure and the optimal dynamic path for regional economy in Japan.



Structures, Strengths and Beneficiaries of Entrepreneurial Networks: Korean-American High Technology Firms in Silicon Valley
Dong-Ho Shin    Hannam University

Silicon Valley is one of the highly dynamic industrial regions of the world, which has attracted many scholars' attentions. Active networks among immigrant entrepreneurs have been known as one of the major factors contributing to the economic success of the region. While Chinese and Indian immigrant enterprises in the region have brought into the public, there have little known about Korean counterparts', however. This paper presents the results of interviews with representatives of Korean-American high technology firms in Silicon Valley. Based on the author's in-dept interviews with a dozen businessmen in Silicon Valley, the paper identified and mapped various patterns of networking: strong ties and weak ties, linkages within the Korean-American community and those outside the community, and local and international linkages.



Internet GIS to Benchmark Local Government Socio-Economic Performance
Tung-Kai Shyy    University of Queensland
Robert J. Stimson    University of Queensland
Alan T. Murray    Ohio State University

This paper develops an Internet geographical information system (GIS) that provides socio-economic information and spatial data analysis for local government areas (LGAs) in Queensland, Australia. The system is designed to improve the means by which large quantities of data may be analysed, manipulated and displayed in order to highlight trends as well as provide performance benchmarking that is readily understandable and easily accessible for decision-makers. Measures of attribute similarity and spatial proximity are combined in a clustering model to support the identification of spatial patterns of change. Analysis of socio-economic changes in Queensland is presented. The results demonstrate the usefulness and appeal of the developed Internet GIS system as a tool to inform the process of regional analysis, planning and policy.



Transport Cost Approach of Earthquake Impact on Transportation Networks: A Scenario Analysis
Jungyul Sohn    University of Illinois
Geoffrey J.D. Hewings   University of Illinois
T. John Kim     University of Illinois
Sung-Gheel Jang    University of Illinois
Jong Sung Lee    University of Illinois

This paper establishes and examines the framework to calibrate the cost differentials of disrupted transportation networks by earthquake, compared to the normal condition. For the analysis, 25-year span of final demands for 36 earthquake analysis zones and for 13 economic sectors are estimated by Dendrinos-Sonis model starting from the base year, 1993. The cost approach incorporates several sub-modules. In the event of earthquake, transportation network loss function by network (TNLFN) and by zone (TNLFZ) are run to obtain the network disruption ratio. The estimated result of TNLFZ is entered into final demand loss function (FDLF) to obtain changed final demand. And the resulting final demand as well as the disruption ratio from TNLFZ are exogenous variables in the integrated commodity flow model (ICFM). 1812 New Madrid earthquake is used as the earthquake scenario in the analysis. Stochastic models are combined and GIS integration is also discussed along with the analysis.



New Zealand’s Science Policy Reforms: A Model for Small Nations?
Jack Sommer    University of North Carolina at Charlotte

What can nations with small science communities learn from the New Zealand experience of setting priorities and targetting science and technology funding for State purposes?  Several S&T goal-setting exercises from the late Eighties engaged many in the scientific community and led, in 1995 to Parliament accepting RS&T 2010 as guidance for the future of science and technology for the nation. The “Foresight Project,” to articulate goals and build consensus, began in 1997 and concluded in 1999. Performance measures to aid accountability and inform public management have been dutifully stressed, but these are hard to devise with specificity and/or monitor.

In 1996 a Survey of New Zealand Scientists and Technologists asked questions designed to provide benchmarks for some RS&T 2010 goals.  In 2000, the Year 2000 Survey queried a sub-set of the original respondents.  Responses to these surveys indicate whether there has been progress toward achieving goals, hence rudimentary performance indicators are introduced.  Survey results can provide additional information for managing S&T, enhancing public understanding of S&T, and being an important voice for the science and technology community.  Both quantitative and qualitative responses indicate high stress in the system, and raise questions about the efficacy of zealous management of S&T.



Spatial Communication and Information Technology Diffusion
Peter L. Stenberg    U.S. Department of Agriculture

Diffusion of technology has never been instantaneous or spatially uniform.  The recent rapid changes of new communication and information technology offered in the marketplace are no different.  A distinct spatial pattern has developed over the last decade for U.S. households.  Adoption rates vary across region, urban density, income, and ethnicity.  For example, households in rich urban communities use the Internet much more than households in poor rural communities.  Households in rural western communities, for another example, are more likely to use the Internet than households in rural southern communities.  Two theories of diffusion, the epidemic and threshold theories, are relevant in the adoption of new telecommunication technology.  The research uses diffusion theory to explain the spatial pattern.  Federal, state, and local governments have all had policy directed toward communication and information systems.  Government policy effect on the diffusion is analyzed and it is shown the impact policy has had on adoption rates across regions and communities.



Inner City Renaissance in Metropolitan Australia: The Case of Brisbane
Robert Stimson    University of Queensland
Scott Baum     University of Queensland
P. Mullins     University of Queensland

Globalisation, structural economic changes, changes in housing preferences and lifestyle associated with shifts in household types and the increase in symbolic analyst jobs in knowledge-based industries in the 'new economy', plus urban boosterism and explicit public policies facilitating urban consolidation, are combining to create what has been heralded as an 'inner-city renaissance' in Australia's large metropolitan areas.  This paper examines the dimensions of this inner-city transformation, focusing on Brisbane, the nation's third largest city.  It includes the results of a multi-variate classification of transformation across the 65 local areas comprising the inner city.



Spatial Technology Industry Clustering: Alternative Methods for Analysis
Roger R. Stough    George Mason Univeristy
Rajendra Kulkarni    George Mason University

There has been much interest in industrial cluster analysis over the past 10 years or so as a method to advise the development and implementation of regional economic development policy.  Most of these studies have focused on measuring the functional clustering of industries and have used a variety of methods ranging from expert opinion to more sophisticated analysis of input-output relations to identify value chain clusters.  Much less work has considered spatial clustering of industries or the relationship between functional and spatial industrial clustering.  This paper reviews recent work by the authors and others that has investigated the relationship between functional and spatial clustering that has demonstrated a positive relationship but one that is more strongly developed in mature economies.  The paper then argues for the importance of moving this research forward and that to do so requires further development of methods for spatial cluster analysis.  Next the paper introduces alternative methods for measuring and describing spatial industrial clusters.  These include analyses based on nearest neighbor, K-order nearest neighbor statistics and first-order and nth order hierarchical cluster analytic techniques.  Other techniques including spatial partitioning and zonal level analyses using local Moran statistics are also employed.  Results are presented with aid of a GIS system.  The analyses are applied to firm-level technology industry data for three metropolitan areas  (Baltimore, Maryland; Washington, D.C.; and Richmond, Virginia) that are functionally linked along the I-95 corridor on the East Coast of the U.S. The Baltimore and Richmond regions are examples of relatively mature economies; the Washington region is much less mature given recent high growth and growth in the technology sector. Results of the analyses are used to explore possible complimentary and contradictory policy initiatives.



Small Area Population Forecasting Using Nonstationary Transition Probabilities
Stuart H. Sweeney    University of California, Santa Barbara

The mathematics of multiregional population projections were defined over twenty years ago and the projection method has been implemented both in the United States, for subnational projections, and internationally.  One shortcoming of the multiregional approach is the assumption of stationary transition probabilities.  Though several methods have been proposed to introduce nonstationarity, until recently there has not been a time series of interregional migration matrices to implement and test these competing methods.  This paper implements a multiregional projection model with nonstationary transition probabilities for California using a regionalization composed of eleven substate bioregions, the rest of the U.S., and the rest of the world.  Results are compared for the stationary  and nonstationary models and among alternative implementations of the nonstationary model.



Spatial Externalities: Theoretical and Measurement Issues
Stuart Sweeney    University of California, Santa Barbara
Edward Feser    University of North Carolina, Chapel Hill

While aggolomeration economies, or spatial externalities, remain one of the central theoretical concepts of spatial economics, they are notoriously difficult to measure.  As interests in spatially-explicit economic theories and concepts has increased, there has been a concommitant increase in the demand for empirical measures of spatial proximity among firms.  Over the same period, the availability of spatially-referenced economic data has exploded.   Researchers have responded by adapting a variety of existing measures of spatial association to this new domain of application.  The current state-of-the-art includes a large pool of competing measures.  Our chapter will provide the first systematic review of the those empirical measures using standard data sets and evaluation criteria.  The results will establish guidelines for researchers engaged in empirical studies of spatial externalities.



A Study on the Development of a Model of Desirable Waste Disposal Systems in Regions
Junzo Tachibana    University of Ritsumeikan
Mamoru Haruna    University of Ritsumeikan

Recently, various approaches for environmental issues including resource reservation have been active.  In wastes disposal problems that are resource reservation, difficulty to secure reclaimed land, and so on, the objective of wastes disposal for recycling have expanded.

In my country we are groping for effective wastes disposal system.  It is necessary to study disposal system comprehensively including stages of production, consumption, discharge, disposition and recycling for desirable wastes disposal system.

This paper describes a model analysis on system as tools of creating the information to support a desirable planning of wastes disposal system including recycling system that consider the most suitable selection of technology, system and establishments of process of waste, the economical validity and the excess capacity of last reclaimed land.  And model analysis on wastes disposal system to establishing the desirable planning of disposal system process of waste including recycling system by the synthetic actuality level for the wastes processing systems improvement project problem was examined through case study analysis at the Kusatsu City and the Rittou town.

In this paper we make a dynamic model which decides the location of the facility, construction schedule, the size of each facility, the kind of the facility, the system of discharge and the route to gather and transport the wastes in each zone of each term to obtain minimum objective value which means the total quantity of wastes carried to reclaimed land in the condition of a construction costs limit, management costs limit, disposal costs limit and wastes gathering costs limit in the planning term.

Also, as a sub-model, wastes gathering and transport system planning model is developed to solve the problem to minimize gathering and transport costs.  This model solves the problem to decide the minimum distance route that the gathering vehicle starts the base in the zone, with optimization method of combinatorics.



Creation and Collapse of Japan's Economic Bubble: On the Reasons Giving Rise to the Twentieth Century’s Largest Asset Bubble, and Why Serious Deflation May Be Unavoidable
Masahide Tanaka    University of Tsukuba
Keiichi Tanaka    Nihon University
Namoi Maruo    Chiba Commerce University

This paper will debate the processes by which Japan's largest asset bubbles were generated in the twentieth century, as well as the reasons for their collapse.  In the ten years since the collapse of Japan's latest bubble, its economy has suffered serious deflation.  This paper will discuss how the government could reform the economy.

This paper will also shed light on the causes for the occurrence of economic bubbles, debate the processes and causes of their collapse, and analyze the effects on the economy that such collapses have.

Following the collapse of the most recent economic bubble, the Japanese government's many efforts toward economic revitalization have been ineffective.  This paper will research the causes and effectiveness of asset policies for Japanese economic reconstruction.

Finally, there will be discussion on whether the occurrence of an economic bubble can be avoided in countries or cities which have developed market economies.  In reference to past experience, guidelines will also be presented for countries where economic bubbles may occur.



Measuring Environmental Capacity and Long Term Regional Growth: Analysis for 350 Years Range Based on Rice Harvest Data
Mamoru Taniguchi   Okayama University

Though the words of Sustainable Growth or Environmental Capacity become very popular in the fields of regional science now, their concepts have not defined quantitatively until now.  If the environmental capacity could be measured in each region, not only it is very convenient to know the environmental situation, but also long-term regional growth factors that might influence environment could be also evaluated.
This study suggests the new measurement method concerning environmental capacity.  Case study is executed for 87 Japanese local regions during these 350 years, the very long-term.  The analysis is based on rice harvest data that converted into population in each region.  The concept of Sustainable Population is proposed and it is clarified how the present population of each region is different from the theoretically calculated sustainable population.  Multi-regression model is also examined to investigate factors to affect this difference, such as political control, infrastructure, natural disaster and other regional factors.  By using this method, regional environmental loads and growth could be evaluated from very long-term.



Trade and the Environment: A Ricardian Analysis Reconsidered
Makoto Tawada    Nagoya University

This paper aims to investigate the pattern of trade and the gains from trade in the economy where two countries, two commodities and one primary factor exist and the environment affects production. Both commodities, say a manufacturing commodity and an agricultural commodity, are produced by the use of the primary factor, say labour, under the environment. The production activity of the manufacturing commodity deteriorates the environment and the environment affects the labour productivity of the agricultural commodity.

In this framework, consider two countries similar in the sense that the labour endowment, production technologies, preferences and the relation between the environment and production are all the same between those counties. Then, we investigate how the pattern of preferences and the initial stock of the environment influence the pattern of trade between countries and the gains from trade in each country.

Our framework and analysis heavily depend on Copeland and Taylor (1999) but deepen their analysis in order to add more precise results.



Modeling Benefits of Incident Management Systems
Jean-Claude Thill    State University of New York at Buffalo
Jun Yan     State University of New York at Buffalo

This paper will present a model designed to evaluation the benefits of deploying selected elements of an Incident Management System (IMS), namely variable message signs, detection and surveillance devices, and highway emergency local programs. The model is designed as a sketch planning tool to meet the diversity of needs of New York State ITS coordinators in their economic assessment of expected user and operational benefits of ITS technology in specific corridors. The paper presents the general modeling philosophy. Results of several scenarios are introduced, with an emphasis on the sensitivity of model results to key parameters such as the traffic diversion rate, reduction in detection time, response time, and clean-up time.



Transformation of Resource Based Economies: Creating a Rural Center for Alternative Dispute Resolution and Peace Making Units in Indonesia and Arizona
Eric P. Thor     Arizona State University
Maman Achmad Rifai   Arizona State University
Aninditta Savitry    Arizona State University

In the transformation of resource-based economies to market-based ones, disputes over land, economic systems, and financial resources can be a serious impediment to growth.  In Indonesia, this has caused riots and even death.  In both rural and agriculturally based Arizona and Indonesia, this paper highlights methodology and courses being developed to solve some of these conflicts.

Mediation, alternative dispute resolution, peach making and arbitration are techniques that can help solve both commercial and civil disputes.  This is particularly true where the "rule of law" or courts cannot or will not be able to solve issues quickly, economically, and efficiently.  In fact, rural alternative dispute resolution grew out of farmers' disputes, which could not be resolved by the existing institutions.  In the U.S., over 70% of disputes referred to mediation are solved to the satisfaction of all parties.  Today around the world, mediation and similar techniques are used in trade matters, cross border issues, land issues, health determinations, divorce, and a wide variety of other issues before the courts, government agencies, and health organizations.

Indonesia has more than 300 ethnic groups, which have distinct cultures, business practices, civil and commercial practices.  As an emerging market, it faces a number of problems in multicultural and commercial practices.  These problems are challenging the ability of rural community development.  An article in the International Herald Tribune entitled "Indonesia faces a breakdown…" stated that "Many fail to realize that restructuring the financial sector (and many others) without restructuring the judiciary will end in failure."  The need to have an alternative dispute resolution continues to grow, as well as the need to empower the people.

Indonesia, as a relatively young country, can learn a lot from America's Southwest long history of disputes and resolution.  I has over 27 Native American nations, a large Asian and Hispanic community, gender issues and five major religions which must work together to solve disputes, mediate crises, and build communities in rural areas.  The techniques and institutions that grew out of the U.S. farm credit crisis and America's Southwest cultural and ethnic diversity could provide a number of ideas, techniques, and educational tools that are useful in alternative dispute and crises resolution.

In the next 3 years, the Academy of Agriculture, Bogor Agricultural University and Arizona State University will continue to develop new ideas and institutions to assist alternative dispute resolution in Indonesia.  This includes the establishment of Indonesia Rural Alternative Dispute Resolution and Agribusiness Unit (RADRU).  They will focus on developing joint techniques, courses, and certified individuals that will assist rural civic and commercial dispute settlements.

The strategy of IRADR is to promote courses and training, which focus on civic and mediation centers from the rural areas and to teach courses leading to mediation certificate and dispute resolution programs.  The purpose is that the various parties can assist each other to focus on the techniques and alternative dispute resolution process in Indonesia and Southeast Asian emerging markets.



Simulations of the Government Regional Investment Policy: An Interregional Computable General Equilibrium Model for Indonesia
Suminori Tokunaga   University of Tsukuba
Sun Lin     Nagoya City University

In this paper, following the 1995 Interregional Social Accounting Matrix (IRSAM), we will built an interregional Computable General Equilibrium (IRCGE) Model for Indonesia, and apply it to analyze the government regional investment policy. In this model, the Indonesia economy is divided into Sumatra, Java and other region, furthermore Java region is divided into three micro regions (east Java, central Java and west Java). We focus on the real side of the regional economy, and conveys a comparative static-type of analysis.



Structural Change of Business Network Structure in Japan – Analyzed by a Two-Level Optimal Facility Location Model
Makoto Tsukai    Hiroshima University
Makoto Okumura    Hiroshima University

Large scale firms, whose customers are spreading all over Japan, usually locate several number of branch offices adding to the headquarters and build a hierarchical business network.  In such a business network, information flows between main and branch offices are expected to be less than that between the branch and customers.  We use the ratio of the upper flow compared to the lower flow as an index of branch office functions.  Developments of information technology (IT) must surely alter the function of branch offices and then the information flow ratio.  According to the ratio, the most effective branch office locations and division of their territories becomes different.  Needless to say, transportation/telecommunication accessibility alters the effective business network structure.  Then, IT development and transportation/communication network development seem to be two major determinants of the business network, composed of headquarters and branches.

This paper aims to suggest a normative model to describe the business network configuration, and to estimate the information flow ratio of branch offices, based on inter-regional business passenger trip data in 1990 and 1995.  We will show that branch offices of medium vale of the ratio increased share, reflecting the closure of inefective offices in third-ranked cities in order to cut total operation cost in the midst of very tough competition.



Asymmetric Traffic Assignment with Flow Responsive Signal Control in Urban Network
Ken-etsu Uchida    Hokkaido University
Seiichi Kagaya    Hokkaido University
Tohru Hagiwara    Hokkaido University

In urban road networks, the intersection delays are not small enough to ignore in consideration of travel cost. So, traffic assignment needs to represent detail intersection delays. In this paper, the intersection delay model considering lane-base vehicles’ maneuver is developed. Next, the user equilibrium assignment model that contains the flow responsive signal control policy P0, was developed. This equilibrium assignment model violates the analytical condition as to uniqueness of equilibrium. However, convergence of the model is sufficiently held according to computational test of small and non-congested network and real congested network i.e. Sapporo midtown network. However, uniqueness of equilibrium was not obtained in case of small network. That is, starting form different initial flow patterns, this model gave multiple equilibria flow patterns. Because the model has capacity constraints, the initial flow patterns are not very different in case of real network. So, computational test in urban network gave reasonable equilibrium flow patterns.



General Analysis of the Environmental Status of the Black Sea Basin in Order to Set a Comprehensive Address to Improve the Water Quality of the Sea: An Economical Approach
Suleyman Ulger    Tsukuba University
Yoshiro Higano    Tsukuba University

The Black Sea has a special geographical and topographical characteristics make it a unique marine environment. As a land-locked and vessel-shape sea with a shallow strait, Bosphorus Strait, connected to Marmora Sea, the Black sea is divided to two separated layers, aerobic and anoxic.  Beside, the Black Sea suffers from serious environmental problems due to the anthropogenic activities. High amount of contaminants is being discharged to it from 17 countries causing deterioration in the water quality and ecosystem.  Therefore, these two factors make finding solution to improve the environmental status of the Black Sea one of the critical issues.  There are many studies have been carried out at individual, governmental, and international organization levels to address the problem, some of them are being under implementation and show good result. However, this improvement still limited to some extents.  In this paper, these studies have been summarized and analyzed from socioeconomic point of view in order to figure out the gaps and formulate a primary outline of optimal policy to improve the water quality of the Black Sea.



Does Zoning Density Affect Housing Price? An Analysis for Missoula, Montana
Christiane von Reichert   University of Montana
Elizabeth Mullins    University of Montana

In 1999, recent home buyers in the United States paid 33 percent of their income on housing, up from 24 percent in 1976. In particular in communities with fast population growth but correspondingly slow economic growth, affordable housing—housing which commands 30% or less of incomes—has become scarce. In order to make housing more affordable, a variety of solutions have been proposed. The strategy examined here deals with the size of the land parcel. The cost of land represents from eight to 25 percent of housing costs. Building on smaller parcels means that the land component represents a smaller share of the housing price. Additionally, the cost of developing a parcel—sewer, water, power, etc.—is lower if housing is built at higher density.  High-density zoning is, therefore, expected to result in lower-priced housing. Data from the Missoula County Association of Realtors MCAR are used to assess the effect of zoning density and lot size on housing price. The data set contains 2088 single-family housing units sold between 1996 and 1999 in the city of Missoula, Montana. Regression results show that, after controlling for other housing characteristics, homes in high- and medium-density residential zones are significantly lower priced than housing units in very low-density zones. The results lend support to the argument that higher-density zoning and small-lot development increase housing affordability.



Longitudinal Validation of the UrbanSim Model in Eugene-Springfield, Oregon
Paul Waddell    University of Washington

Over the past several years, the UrbanSim land use simulation model has been designed, implemented in software, and calibrated for Eugene-Springfield, Oregon and other metropolitan regions.  UrbanSim is a dynamic microsimulation model system, adopting a disequilibrium approach to real estate market adjustments. This paper describes an effort to validate the model system longitudinally over a period from 1980 to 1994, comparing simulated to observed values.  Additional sensitivity testing of key dynamic model parameters is addressed in the analysis.  The model system simulates household mobility and location, employment mobility and location, real estate development, and land prices.  All analysis is currently done using grid cells of 150 by 150 meters.  The model system is linked to a four-step travel demand model, from which composite multi-modal regional accessibility measures are derived.



A Long Run Production Cost Function in a Long Run Equilibrium Model of Plant Dispersion
Rickard E. Wall    Linköping University

In spatial economic modeling, e.g. in Location Theory models, it is common to assume that the production costs of a firm are given by some function:

TC = F + MC.q
Where
 TC = total production costs
 F = fixed costs
 MC = marginal cost
 q = quantity produced
Since the standard economic model postulates that there are no fixed costs in the long run, the cost function above is to be regarded as a short run one.  It may give rise to some hesitation to use such short run functions in spatial models in order to derive long run equilibrium results.  This often is done, nevertheless.

In this paper a particular long run production costs function is derived, which possesses the properties of the function shown above.  This derived cost function, thus, may serve as a justification for current choices of functional forms in modeling production costs in the spatial economy.



Industrial Competitiveness in Taipei City
Tzu-huei Wang    Chinese Culture University

Some research blames the relatively high share of services for the decline of population in Taipei City, and therefore suggests that the government focus more on manufacturing and develop high-tech research parks.  However, whether the relatively high share of services has led to the urban decline or whether developing industrial parks in the area with high density of population remains questionable.

Recent studies show that manufacturing sector is not the only one that can foster the growth of an area.  Along with the shifts of national industrial structure, services may export its output and promote urban growth.  This paper uses a new industry taxonomy and redefines export (or traded) industries.  The urban economy in this paper is divided into two sectors: Export sector, and Local sector.  It is hypothesized that only export industries can affect the growth or decline of an area.  Export industries are further divided into two sectors: Goods Production and Distribution (GPD), and Information Intensive Services (IIS).

The purpose of this paper is to identify the most competitive industry in Taipei City and the direction for future industrial development when the national industrial structure has favored the IIS sector over the GPD sector.  The research shows that from 1981 to 1996 the most competitive industry sector is IIS rather than GPD.  This finding is contrary to the recent proposal of the city government that Taipei should develop an R & D park in order to attract investment and immigrants for urban growth.  The competitive advantage of Taipei City exists in its specialized human capital, public infrastructure, and agglomeration economies arising from long-term specialization in IIS.  Instead of attempting to stimulate new business in fields where Taipei City lacks local expertise, the local government should identify its own best-specialized industry sector and upgrade it from an established base of firms.



Subnational Business Capital Taxation: A Sheep in Wolf’s Clothing?  A Computational General Equilibrium Analysis
Michael F. Williams   University of St. Thomas

In this paper I construct a four-region, four-product, three-factor, two income class computational general equilibrium model of the United States, which I use to examine the effectiveness of subnational business taxation relative to other subnational tax instruments.  The computer model is calibrated using 1999 data.  Each of the four regions is an aggregate of several states.  Within each region four products are produced; one is interregionally traded, one is not traded, one is provided by the region's government, and the last is provided by the national government.  Each of the four products requires capital, skilled labor, and unskilled labor for its production.  These factors are supplied by two types of households, Rich and Poor, who differ in their relative factor endowments and in their ability to relocate among regions (Rich may be mobile; Poor are immobile).  Each household consumes each of the four products.  Federal and regional governments tax households, firms, and products.

A benchmark equilibrium is established in which product and factor markets clear, government budgets balance, and in which Rich households have no incentive to relocate among regions.  I then simulate several tax policy changes.  In the simulations, a regional government unilaterally eliminates its household taxes, replacing the lost revenue by increasing its business capital taxes.  In these simulations, household utilities generally increase in the region that eliminates its household taxes, while utilities decrease in other regions.  This result is especially robust for regions that are net capital importers--those regions in which producers use more capital than their regions' residents own.  Sensitivity analysis reveals that my simulation results are fairly robust, even when important parameter estimates (such as elasticities of substitution in production and consumption) are varied.



A Comparative Analysis of the Impact of Mobility on Dual Earner Families
Suzanne Davies Withers   University of Washington
William A.V. Clark   University of Washington

This paper examines, in a longitudinal context, the impact of mobility on the labor-force status of dual-earner households. There has recently been a resurgence of interest, within industry and academia, in the impact of family migration on the labor-force status of women, and on dual-earner families in general.  Much of the research in this field has documented the disruptive effects of migration on the labor-force status of women, particularly with respect to unemployment, underemployment, and interrupted careers. More recent work has challenged the disruption assumption with findings that many women benefit from family migration. The conflicting results occur when the modeling procedure explicitly accounts for the selectivity of migrants. Consistently, it has been found that working wives have an inhibiting effect on migration due to the opportunity costs associated with moving. Missing from the literature is a comparison of the impact of mobility on the labor-force status of dual-earner households at varying geographic scales. This paper extends the previous work on the impact of family migration by directly comparing the labor-force status of dual-earner households who migrate long distances with those households who move within the same labor market and those who remain residentially stable. The empirical analysis uses the Panel Study of Income Dynamics for the period 1986 to 1993 to test for significant differences in the labor-force dynamics of these three groups. Methodologically, this research serves to advance the concept of selectivity into models of the labor-force impacts of migration. Substantively, this research expands our conception of the disruption of migration for dual-earner households by considering not only the disruptive impacts of long-distance migration, but also the potentially disruptive impacts of geographic stability.



Future Role of the Automobile in Urban Areas in Korea
Jaimu Won     Hanyang University

The automobile has become a prime target for efforts to conserve petroleum, reduce air pollution, and improve travel safety. However, since auto travel accounts for about 60 percent of all trips and passenger kilometers, it will be critical to forming future transportation policy, policies which may be utilized to alter the role or usage pattern of fall into a number of categories including : (1)restriction of auto use (2) discouraging excessive or inefficient auto use, (3) encouraging efficient auto use, (4) reducing the governmental subsidization of road facilities, (5) encouraging the usage of alternative fuel . These and other policy classes, combined with technological improvements, are the basic tools by which role and use of auto can be made more efficient. Thus, the definition of alternative roles of for the automobile, in both future transportation and urban areas in general is of critical significance.



Knowledge-Intensive Services and Urban Innovativeness
Peter Wood     University College London

This paper addresses three issues in the context of knowledge-intensive service (KIS) development, related to the competitive base of cities and the degree to which they possess distinctive sources of innovativeness. The first is, how may growing KIS, or consultancy, use influence client innovation? Although this is inherently difficult to demonstrate, the expertise and modes of operation of consultancies suggest that they do influence technical and organisational change amongst clients. The second issue is the segmentation of consultancy influence, especially by sector and types of firm. Finally, how far does the urban base of consultancy supply imply local, specifically urban, benefits for client innovation? Consultancy services are often delivered over wide areas from their urban bases, within national and international nexuses of corporate and public sector service exchange. This question cannot be answered by focusing only on local exchange. Urban client-consultancy interaction needs to be set within a national and even international context of specialist expertise exchange.



Chaotic Land Use Location Analysis Arising from Geographic Information Systems
Etsuo Yamamura    Hokkaido University

Metropolitan growth trends throughout rapid suburban sprawl as well as urban renewal/dynamics land use changes needs to be inter-linked to the urban land use changes based on transportation networks.  The resultant impact of land use changes on the population concentration results in the increasing pressure on the infrastructure facilities also poses high vulnerability risks.  In order to meet all the needs of chaotic urban land use changes, an approach using Geographic Information Systems (GIS) is presented with the capabilities of data input, updating and manipulation for multi-purpose research and be called urban land use changes around subway network in Sapporo City, Japan.  In this paper, we derived from the generation of summary statistics from the two land use (1977 and 1993) coverages clipped and overlaid within the buffer zone of 500 meters of the subway network.  The detailed break-up shows mainly the pattern of conversions of natural ecosystem unites into diverse urban land uses.  The land use summary statistics for 1977 and 1993 with detailed break-up areas with no change, loss and gains.  It is observed that these are occurred mainly around the terminals of the subway network.  The observations reveal that almost entire agricultural fallow/marsh areas sere converted into many urban land uses.  There can be well noticed near the eastern terminal node and the northern terminal node.  Major ecosystem changes are 100% conversion of vegetable farms, loss of almost 90% of marshes, more than 85% of orchards and than 60% of open spaces.  Almost 90% of the parks are converted mostly into residential medium/high or commercial uses.  One of the salient observations is the conversion of marshy canal into an expressway.



Land Consolidation in Rural Communities in Taiwan
Ai-Ching Yen    National Chengchi University

Since a magnitude earthquake occurred in Central Taiwan at 1:47 on September 21, 1999, the topography and landforms had an enormous change. The resulting heterotaxy caused huge damages and destroyed many townships. In order to reconstruct the rural farming villages, the local governments try to carry out Land Consolidation in Rural Communities to renovate the disaster areas hit by a natural adversity. This is based on the Act on Land Consolidation in Rural Communities (LCRUA), which was published on January 26, 2000. The basic idea of this measure is that the user (beneficiary) should share part of the expenses. That is to say, the part of land needed for public use, and expenses for engineering work, and expenses for the interest of loan and dismantling compensation, shall be jointly contributed by the owners in proportion to the benefits that will accrue to the them. The performance of this measure is to be observed, however.



Network Interactions: Transportation and Telecommunications
Serdar Yilmaz    The World Bank
Somik Lall     George Mason University
Roger Stough    George Mason University
Kingsley Haynes    George Mason University

The conventional literature on telecommunication does not appear to have focused on the various sources of interactions between telecommunication networks and other networked infrastructure. Further, much of the transportation literature suggests that transportation and telecommunication infrastructures are substitutes. The focus of this paper is to examine the scope of interaction between two types of infrastructures. In our previous paper we tested for network interaction effects by using a translog production function. The results suggested that there is a significant interaction between these two networked infrastructures. In this paper, further analysis suggests that the sources of interaction are related to the usage patterns of the two networks.



Modeling the Effects of Advanced Traveler Information on Urban Worker’s Travel Choice Behavior
Dae-Sic Yun    Yeungnam University

Travel choice behavior is affected by real-time traffic information. Recently, in urban area of Korea, real-time traffic information is provided by several instruments such as variable message sign, transportation broadcasting, and internet PC network, etc. In Korea, it has been increasing for urban travelers to use real-time traffic information provided by several ways.

The purpose of this study is to analyze the effects of advanced traveler information on urban worker’s travel choice behavior. Among several Advanced Traveler Information System(ATIS) employed in Korea, this study focuses on examining the effects of transportation broadcasting on urban worker’s travel choice behavior. This study attempts to examine traveler’s mode change behavior in the pre-trip stage and traveler’s route change behavior in the en-route stage.

For this study, survey data collected from Daegu City, the third largest city in Korea, in 2000, will be used. For empirical modeling, several logit and/or nested logit models will be estimated. Furthermore, based on empirical models estimated for this research, some policy implications will be discussed.



Multiple Convergence: Induced Travel Analysis in Metropolitan Areas
Jihong Zhang    Portland State University
James G. Strathman   Portland State University
Kenneth J. Dueker   Portland State University
Anthony M. Rufolo   Portland State University
Thomas W. Sanchez   Portland State University

Roadway congestion persistently plagues the metropolitan areas in the US.  The standard remedy to this problem emphasizes the roadway supply side– increasing roadway capacity or “building our way out.”  However, recent studies indicate that building roadway could induce people to drive more, a phenomenon called induced travel. With induced travel, roadway investments seem to be of little value in congestion reduction. Using household data from the 1995 NPTS (Nationwide Personal Transportation Survey) enriched with congestion data from the TTI (Texas Transportation Institute), this dissertation studies urban workers’ travel behavioral responses to roadway capacity improvements, which includes the possible new trip generation as well as the spatial, temporal and mode redistribution of the trips.  A seemingly unrelated regression model, which simultaneously takes into account the new trip generation, mode choice, public transit level of service, job-house distance, and work trip departure time, is employed in the empirical analysis.  It is found that urban workers have longer personal vehicle miles of travel (PVMT) and longer commuting distance in metropolitan areas with higher levels of roadway capacity. They also tend to travel closer to the morning peak hour defined as the mean of the departure times of all the workers, suggesting that peak narrowing effect happens with roadway capacity improvements. It is also found that with its impacts on bus ridership, roadway capacity improvement has negative effects on the simultaneity system of bus mode usage and bus level of service, which indicates that the Downs-Thomson paradox could happen with roadway capacity improvements.



Sustainable Tourism Along the Israeli Shoreline of the Gulf of Aqaba
Aharon Zohar     Regional and Environmental Planning, Israel

Israel’s shoreline is notable for being the shortest among neighboring states bordering the Gulf of Aqaba. However, because of the concentration of diverse activities in a limited area, Israel’s shore and natural environment face significant potential threats.  Current and potential threats to the environment of the Gulf of Aqaba arise principally from tourism and associated activities, population growth in the city of Eilat induced by tourism expansion, and to a less extent maritime activities associated with ship traffic, port operations and fish farming.  Continued expansion of the tourist accommodations will necessitate expansion of the city population, as the need for workers to serve the new tourist facilities grows.  Estimates based on current Regional Master Plan goals suggest that Eilat’s population, currently 40,000, will more than double in the next 12 years, generating increased pressures on water supply, wastewater treatment, and solid waste management facilities and other infrastructure needs, in particular highways and airport.  At the same time, access to the Gulf beaches for the local population is already limited, and a significant population increase will increase pressures on the already crowded shoreline.  The environmental dilemma for the Israel coast of the Gulf of Aqaba is that of allocating and regulating the uses of limited land and water area between competing users, in such a way as to ensure protection of the natural and environmental resources that underlie the tourism industry, the main economic base of the city.  The principal threat to the environment of the Gulf of Aqaba in Eilat stems from expansion of the tourism economic base and the population growth induced by that expansion.  The challenge of meeting this threat is to manage this growth in a manner that is economically sound and environmentally sustainable. Comprehensive planning, embodying financial feasibility and natural and environmental limitations on tourism growth, should be the major tool in meeting this challenge. Completion of planned nature reserve designations and strengthening local environmental enforcement capabilities are also of critical importance.  The principles of the GAEAP for Israel address these goals through long term preventive measures, prevention of continued environmental degradation development and increased use in environmentally-friendly technologies, and promotion of development to minimize impact to the coastal and marine environment.