《区域经济学的导入》（英文版）An Introduction to Regional Economics

An introduction to regional economics Edgar m. hoover and frank giarratani contest Edgar M. hoover and frank giarratani Edgar M. Hoover and Frank Giarratani LI WHAT IS REGIONAL ECONOMICS? 2 THREE FOUNDATION STONES 1.3 REGIONAL ECONOMIC PROBLEMS AND THE PLAN OF THIS BOOK SELECTED READINGS ENDNOTES 2 Individual location decisions 2.1 LEVELS OF ANALYSIS AND LOCATION UNITS 2.2 OBJECTIVES AND PROCEDURES FOR LOCATION CHOICE 2.3 LOCATION FACTORS 111233334556 2.3. 1 Local Inputs and Outputs 2.3. 2 Transferable Inputs and Outputs 2.3.3 Classification of Location Factors 2.3.4 The Relative Importance of Location Factors 2.4 SPATIAL PATTERNS OF DIFFERENTIAL ADVAN TAGE IN SPECIFIC LOCATION FACTORS TRANSFER ORIENTATION 2.6 LOCATION AND THE THEORY OF PRODUCTION 2. 7 SCALE ECONOMIES AND MULTIPLE MARKETS OR SOURCES 2. 8 SOME OPERATIONAL SHORTCUTS 233 2.9 SUMMARY 14 TECHNICAL TERMS INTRODUCED IN THIS CHAPTER SELECTED READINGS ENDNOTES 3 Transfer Costs 567 3.1 INTRODUCTION 17 3.2 SOME ECONOMIC CHARACTERISTICS OF TRANSFER OPERATIONS 3.3 CHARACTERISTIC FEATURES OF TRANSFER COSTS AND RATES 3.3. 1 Route Systems and Service Points 3.3.2 Long-Haul Economies 3.3. 3 Transfer Costs and Rates 3.3.4 Time Costs in Transfer 3.4 LOCATIONAL SIGNIFICANCE OF CHARACTERISTICS OF TRANSFER RATES 3. 4. 1 Effects of Limited Route Systems and Service Points 3.4.2 General Locational Effect of Transfer Rates Rising Less than Proportionally with Distance 3.4. 3 Modal Interchange Locations 3.5 SOME RECENT DE VELOPMENTS CONCERNING THE STRUCTURE OF TRANSFER COSTS 3.5.1 Introduction 23 3.5.2 Higher Energy Prices and the Pattern of Industrial Location 3.5.3 Technological Change in Data Processing and Transmission 3.6 Summary TECHNICAL TERMS INTRODUCED IN THIS CHAPTER SELECTED READINGS APPENDIX 3-1 Rate Discrimination by a Transfer Monopolist ENDNOTES 4 Location Patterns Dominated by Dispersive Forces 4.1 INTRODUCTION 4. 1. 1 Unit Locations and the Pattern of an Activity 4.1.3 Some Basic Factors Contributing to Dispersed Patterns 4.2 MARKET AREAS 4.2.1 Introduction 4.2.2 The Market Area of a Spatial Monopolist 4.2.3 Market-Area Patterns

1 An Introduction to Regional Economics Edgar M. Hoover and Frank Giarratani contest Edgar M. Hoover and Frank Giarratani............................................................................................................1 Edgar M. Hoover and Frank Giarratani............................................................................................................1 1 Introduction...............................................................................................................................................1 1.1 WHAT IS REGIONAL ECONOMICS?......................................................................................................1 1.2 THREE FOUNDATION STONES.............................................................................................................1 1.3 REGIONAL ECONOMIC PROBLEMS AND THE PLAN OF THIS BOOK..................................................2 SELECTED READINGS...............................................................................................................................3 ENDNOTES ................................................................................................................................................3 2 Individual Location Decisions......................................................................................................................3 2.1 LEVELS OF ANALYSIS AND LOCATION UNITS....................................................................................3 2.2 OBJECTIVES AND PROCEDURES FOR LOCATION CHOICE .................................................................4 2.3 LOCATION FACTORS............................................................................................................................5 2.3.1 Local Inputs and Outputs.......................................................................................................................5 2.3.2 Transferable Inputs and Outputs..............................................................................................................6 2.3.3 Classification of Location Factors...........................................................................................................6 2.3.4 The Relative Importance of Location Factors............................................................................................6 2.4 SPATIAL PATTERNS OF DIFFERENTIAL ADVANTAGE IN SPECIFIC LOCATION FACTORS ..................8 2.5 TRANSFER ORIENTATION....................................................................................................................9 2.6 LOCATION AND THE THEORY OF PRODUCTION .............................................................................. 12 2.7 SCALE ECONOMIES AND MULTIPLE MARKETS OR SOURCES ......................................................... 13 2.8 SOME OPERATIONAL SHORTCUTS.................................................................................................... 13 2.9 SUMMARY ......................................................................................................................................... 14 TECHNICAL TERMS INTRODUCED IN THIS CHAPTER........................................................................... 15 SELECTED READINGS............................................................................................................................. 15 ENDNOTES .............................................................................................................................................. 16 3 Transfer Costs....................................................................................................................................... 17 3.1 INTRODUCTION ................................................................................................................................. 17 3.2 SOME ECONOMIC CHARACTERISTICS OF TRANSFER OPERATIONS ............................................... 17 3.3 CHARACTERISTIC FEATURES OF TRANSFER COSTS AND RATES.................................................... 18 3.3.1 Route Systems and Service Points......................................................................................................... 18 3.3.2 Long-Haul Economies......................................................................................................................... 18 3.3.3 Transfer Costs and Rates...................................................................................................................... 19 3.3.4 Time Costs in Transfer......................................................................................................................... 21 3.4 LOCATIONAL SIGNIFICANCE OF CHARACTERISTICS OF TRANSFER RATES .................................. 21 3.4.1 Effects of Limited Route Systems and Service Points .............................................................................. 22 3.4.2 General Locational Effect of Transfer Rates Rising Less than Proportionally with Distance .......................... 22 3.4.3 Modal Interchange Locations................................................................................................................ 23 3.5 SOME RECENT DEVELOPMENTS CONCERNING THE STRUCTURE OF TRANSFER COSTS .............. 23 3.5.1 Introduction ....................................................................................................................................... 23 3.5.2 Higher Energy Prices and the Pattern of Industrial Location ..................................................................... 24 3.5.3 Technological Change in Data Processing and Transmission..................................................................... 25 3.6 Summary.............................................................................................................................................. 26 TECHNICAL TERMS INTRODUCED IN THIS CHAPTER........................................................................... 26 SELECTED READINGS............................................................................................................................. 26 APPENDIX 3-1.......................................................................................................................................... 27 Rate Discrimination by a Transfer Monopolist................................................................................................ 27 ENDNOTES .............................................................................................................................................. 27 4 Location Patterns Dominated by Dispersive Forces.................................................................................... 28 4.1 INTRODUCTION ................................................................................................................................. 28 4.1.1 Unit Locations and the Pattern of an Activity.......................................................................................... 28 4.1.3 Some Basic Factors Contributing to Dispersed Patterns............................................................................ 29 4.2 MARKET AREAS ................................................................................................................................ 29 4.2.1 Introduction ....................................................................................................................................... 29 4.2.2 The Market Area of a Spatial Monopolist............................................................................................... 29 4.2.3 Market-Area Patterns........................................................................................................................... 31

4.3 SOME ASPECTS OF SPATIAL PRICING POLICY AND MARKET AREAS 4.3. 1 Market-Area Overlap 4.3.2 Spatial Price Discrimination 4.3.3 Pricing Policy and Spatial Competition 4.4 COMPETITION AND LOCATION DECISIONS 34 4.5 MARKET AREAS AND THE CHOICE OF LOCATIONS 4.5. 1 The Location Pattern of a Transfer-Oriented Activity 35 4.5.2 Transfer Orientation and the Patterns of Nonbusiness activitie 4.6 SUMMARY TECHNICAL TERMS INTRODUCED IN THIS CHAPTER SELECTED READINGS APPENDIX 4-1 66666 Conditions Determining the Existence and Size of Market Areas This reduces to ENDNOTES 5 Location Patterns Dominated by Cohesion 5.1 INTRODUCTION 5.2 EXTERNAL ECONOMIES: OUTPUT VARIETY AND MARKET ATTRACTION 5.3 EXTERNAL ECONOMIES CHARACTERISTICS OF THE PRODUCTION PROCESS 40 5.3.1 Introduction 5.3.2 External Economies and Scale 5.3.3 Lichtenberg's Study of"External-Economy Industries 41 5.4 SINGLE-ACTIVITY CLUSTERS AND URBANIZATION 43 5. 4. 1 Introduction 43 5.4.2 Urbanization Economies 43 5.4.3 Measuring Urbanization Economies 5.5 MIXED SITUATIONS 5.5. 1 Attraction plus Repulsion 45 5.5.2 Coexistence of Market Areas and Supply Areas, When Both Sellers and Buyers Are Dispersed 5.6 SUMMARY TECHNICAL TERMS INTRODUCED IN THIS CHAPTER SELECTED READINGS ENdNOTES 6 Land Use 6.1 WHAT IS"LAND"? 47 6.2 COMPETITION FOR THE USE OF LAND 6.3 AN ACTIVITY'S DEMAND FOR LAND: RENT GRADIENTS AND RENT SURFACES 6.3. 1 Rent Gradients and Surfaces with Output Orientation 6.3.2 Rent Gradients and Rent Surfaces with Input Orientation 6.3.3 Rent Gradients and Multiple Access 6.4 INTERACTIVITY COMPETITION FOR SPACE 6.4. 1 A Basic Sequence of Rural Land Uses 6.4.2 Activity Characteristics Determining Access Priority and Location 6.5 RURAL AND URBAN LAND USE ALLOCATION 6.5. 1 Some Characteristics of Urban Economic Activity 6.5.2 Equilibrium of Land Uses and Rents 6.6 RESIDENTIAL LOCATION 54 6.7 RENT AND LAND VALUE 56 6.7. 1 Speculative Value 6.7.2 Improvements on Land 6. 8 SUMMARY SELECTED READINGS APPENDIX 61 Derivation of Formulas for Rent Gradients and Their Slopes ENDNOTES 7 The Spatial Structure of Urban Areas 7.1 INTRODUCTION 7.2 SOME LOCATION FACTORS 2

2 4.3 SOME ASPECTS OF SPATIAL PRICING POLICY AND MARKET AREAS .............................................. 31 4.3.1 Market-Area Overlap........................................................................................................................... 31 4.3.2 Spatial Price Discrimination................................................................................................................. 32 4.3.3 Pricing Policy and Spatial Competition.................................................................................................. 33 4.4 COMPETITION AND LOCATION DECISIONS...................................................................................... 34 4.5 MARKET AREAS AND THE CHOICE OF LOCATIONS ......................................................................... 35 4.5.1 The Location Pattern of a Transfer-Oriented Activity............................................................................... 35 4.5.2 Transfer Orientation and the Patterns of Nonbusiness Activities ................................................................ 35 4.6 SUMMARY ......................................................................................................................................... 36 TECHNICAL TERMS INTRODUCED IN THIS CHAPTER........................................................................... 36 SELECTED READINGS............................................................................................................................. 36 APPENDIX 4-1.......................................................................................................................................... 36 Conditions Determining the Existence and Size of Market Areas....................................................................... 36 This reduces to ........................................................................................................................................... 37 ENDNOTES .............................................................................................................................................. 37 5 Location Patterns Dominated by Cohesion................................................................................................ 39 5.1 INTRODUCTION ................................................................................................................................. 39 5.2 EXTERNAL ECONOMIES: OUTPUT VARIETY AND MARKET ATTRACTION ...................................... 39 5.3 EXTERNAL ECONOMIES: CHARACTERISTICS OF THE PRODUCTION PROCESS ............................. 40 5.3.1 Introduction ....................................................................................................................................... 40 5.3.2 External Economies and Scale.............................................................................................................. 40 5.3.3 Lichtenberg’s Study of "External-Economy Industries"............................................................................ 41 5.4 SINGLE-ACTIVITY CLUSTERS AND URBANIZATION........................................................................ 43 5.4.1 Introduction ....................................................................................................................................... 43 5.4.2 Urbanization Economies...................................................................................................................... 43 5.4.3 Measuring Urbanization Economies...................................................................................................... 44 5.5 MIXED SITUATIONS........................................................................................................................... 45 5.5.1 Attraction plus Repulsion..................................................................................................................... 45 5.5.2 Coexistence of Market Areas and Supply Areas, When Both Sellers and Buyers Are Dispersed ..................... 45 5.6 SUMMARY ......................................................................................................................................... 46 TECHNICAL TERMS INTRODUCED IN THIS CHAPTER........................................................................... 46 SELECTED READINGS............................................................................................................................. 46 ENDNOTES .............................................................................................................................................. 46 6 Land Use.............................................................................................................................................. 47 6.1 WHAT IS "LAND"? .............................................................................................................................. 47 6.2 COMPETITION FOR THE USE OF LAND............................................................................................. 48 6.3 AN ACTIVITY’S DEMAND FOR LAND: RENT GRADIENTS AND RENT SURFACES ........................... 49 6.3.1 Rent Gradients and Surfaces with Output Orientation .............................................................................. 49 6.3.2 Rent Gradients and Rent Surfaces with Input Orientation......................................................................... 50 6.3.3 Rent Gradients and Multiple Access ...................................................................................................... 51 6.4 INTERACTIVITY COMPETITION FOR SPACE..................................................................................... 51 6.4.1 A Basic Sequence of Rural Land Uses ................................................................................................... 51 6.4.2 Activity Characteristics Determining Access Priority and Location............................................................ 52 6.5 RURAL AND URBAN LAND USE ALLOCATION ................................................................................. 52 6.5.1 Some Characteristics of Urban Economic Activity .................................................................................. 53 6.5.2 Equilibrium of Land Uses and Rents ..................................................................................................... 54 6.6 RESIDENTIAL LOCATION .................................................................................................................. 54 6.7 RENT AND LAND VALUE ................................................................................................................... 56 6.7.1 Speculative Value of Land.................................................................................................................... 56 6.7.2 Improvements on Land ........................................................................................................................ 56 6.8 SUMMARY ......................................................................................................................................... 57 SELECTED READINGS............................................................................................................................. 57 APPENDIX 6-1.......................................................................................................................................... 57 Derivation of Formulas for Rent Gradients and Their Slopes............................................................................ 57 ENDNOTES .............................................................................................................................................. 59 7 The Spatial Structure of Urban Areas ....................................................................................................... 60 7.1 INTRODUCTION ................................................................................................................................. 60 7.2 SOME LOCATION FACTORS ............................................................................................................... 60

7.2.1 Independent Locations 7.2.2 The Center 7. 2. 3 Neighborhood Externalities 7.2.4 Scale Economies and Urban Land Use 7.3 SYMMETRICAL MONOCENTRIC MODELS OF URBAN FORM 7.3. 1 Bases of Simplification 7.4 DIFFERENTIATION BY SECTORS 62246 7.6 EXPLAINING URBAN FORM 7. 7 CHANGES IN URBAN PATTERNS 7.7.1 General Effects of Urban Growth 66 7.7.2 Changes in Density Gradients for Major Types of Urban Activity 7.7.3 Location of Commodity-Exporting Activities 7.7.4 Location of Administrative and Other Information-Processing activities 7.7.5 Residential Location 7.76 Location of Consumer-Serving Activities 7. 8 SUMMARY TECHNICAL TERMS INTRODUCED IN THIS CHAPTER Monocentric urban models 72222 SELECTED READINGS ENDNOTES 8 The location of urban places 8.1 INTRODUCTION 8.2 THE FORMATION OF A SYSTEM OF CITIES 8.2. 1 Some Simplifying Assumptions 8.2.2 Shapes of Trading Areas 8.2.3 A Hierarchy of Trading Areas 8 2 4 Some practical limitations 8.2.5 Generalized Areas of Urban Influence 8.3 TRADE CENTERS IN AN AMERICAN REGION-THE UPPER MIDWEST STUDY 8. 4 ACTIVITIES EXTRANEOUS TO THE CENTRAL-PLACE HIERARCHY 8.5 TRENDS IN URBAN PATTERNS SELECTED READINGS aPPenDIX 8-1 Trading- Area Boundaries Under Reillys Law see link illy's Law may now be stated as 83 APPENDIX 8-2 ENDNOTES 9.1 THE NATURE OF A REGION 9.2 DELIMITING FUNCTIONAL REGIONS 668 9.3 RELATIONS OF ACTIVITIES WITHIN A REGION 9.3. 1 Vertical Relationships 88 9.3.2 Horizontal Relationships 9.3.3 Complementary Relationsl 9. 4 REGIONAL SPECIALIZATION 9.4. 1 A Classification of U.S. Metropolitan Regions 9.4.2 Some Quantitative Measures of Specialization and Concentration 9.5 SUMMARY 92 TECHNICAL TERMS INTRODUCED IN THIS CHAPTER Homogeneous reg 10 The Location of People 10.1 INTRODUCTION 93 10. A LOOK AT SOME DIFFERENTIALS 10.2. 1 Differentials in Pay Levels 10.2.2 Income Differentials 10.2. 3 Differentials in Living Costs and Real Income 94 10. 3 THE SUPPLY OF LABOR ATA LOCATION

3 7.2.1 Independent Locations......................................................................................................................... 60 7.2.2 The Center ......................................................................................................................................... 61 7.2.3 Neighborhood Externalities.................................................................................................................. 61 7.2.4 Scale Economies and Urban Land Use................................................................................................... 61 7.3 SYMMETRICAL MONOCENTRIC MODELS OF URBAN FORM ........................................................... 62 7.3.1 Bases of Simplification........................................................................................................................ 62 7.4 DIFFERENTIATION BY SECTORS ....................................................................................................... 64 7.6 EXPLAINING URBAN FORM .............................................................................................................. 65 7.7 CHANGES IN URBAN PATTERNS ....................................................................................................... 65 7.7.1 General Effects of Urban Growth.......................................................................................................... 66 7.7.2 Changes in Density Gradients for Major Types of Urban Activity.............................................................. 67 7.7.3 Location of Commodity-Exporting Activities ......................................................................................... 67 7.7.4 Location of Administrative and Other Information-Processing Activities.................................................... 69 7.7.5 Residential Location............................................................................................................................ 70 7.7.6 Location of Consumer-Serving Activities............................................................................................... 71 7.8 SUMMARY ......................................................................................................................................... 72 TECHNICAL TERMS INTRODUCED IN THIS CHAPTER........................................................................... 72 Monocentric urban models........................................................................................................................... 72 SELECTED READINGS............................................................................................................................. 72 ENDNOTES .............................................................................................................................................. 73 8 The Location of Urban Places ................................................................................................................. 75 8.1 INTRODUCTION ................................................................................................................................. 75 8.2 THE FORMATION OF A SYSTEM OF CITIES....................................................................................... 75 8.2.1 Some Simplifying Assumptions............................................................................................................ 75 8.2.2 Shapes of Trading Areas ...................................................................................................................... 75 8.2.3 A Hierarchy of Trading Areas ............................................................................................................... 76 8.2.4 Some Practical limitations.................................................................................................................... 77 8.2.5 Generalized Areas of Urban Influence ................................................................................................... 77 8.3 TRADE CENTERS IN AN AMERICAN REGION-THE UPPER MIDWEST STUDY .................................. 78 8.4 ACTIVITIES EXTRANEOUS TO THE CENTRAL—PLACE HIERARCHY .............................................. 78 8.5 TRENDS IN URBAN PATTERNS .......................................................................................................... 80 SELECTED READINGS............................................................................................................................. 83 APPENDIX 8-1.......................................................................................................................................... 83 Trading-Area Boundaries Under Reilly’s Law see link..................................................................................... 83 Reilly’s Law may now be stated as................................................................................................................ 83 APPENDIX 8-2.......................................................................................................................................... 84 ENDNOTES .............................................................................................................................................. 84 9 Regions................................................................................................................................................ 86 9.1 THE NATURE OF A REGION ............................................................................................................... 86 9.2 DELIMITING FUNCTIONAL REGIONS................................................................................................ 88 9.3 RELATIONS OF ACTIVITIES WITHIN A REGION ................................................................................ 88 9.3.1 Vertical Relationships.......................................................................................................................... 88 9.3.2 Horizontal Relationships...................................................................................................................... 89 9.3.3 Complementary Relationships .............................................................................................................. 89 9.4 REGIONAL SPECIALIZATION............................................................................................................. 90 9.4.1 A Classification of U.S. Metropolitan Regions........................................................................................ 90 9.4.2 Some Quantitative Measures of Specialization and Concentration............................................................. 91 9.5 SUMMARY ......................................................................................................................................... 92 TECHNICAL TERMS INTRODUCED IN THIS CHAPTER........................................................................... 92 Homogeneous region................................................................................................................................... 92 ENDNOTES .............................................................................................................................................. 92 10 The Location of People......................................................................................................................... 93 10.1 INTRODUCTION ............................................................................................................................... 93 10.2 A LOOK AT SOME DIFFERENTIALS.................................................................................................. 93 10.2.1 Differentials in Pay Levels ................................................................................................................. 93 10.2.2 Income Differentials.......................................................................................................................... 94 10.2.3 Differentials in Living Costs and Real Income ...................................................................................... 94 10.3 THE SUPPLY OF LABOR AT A LOCATION ......................................................................................... 94

10.3. 1 Work Location Preferences and Labor mobility 10.3.2 Who Migrates: Why, When, and Where? 10.4 LABOR ORIENTATION: THE DEMAND FOR LABOR ATA LOCATION 10.5 THE RATIONALE OF LABOR COST DIFFERENTIALS 5. 1 Where Are Labor Costs Low? 10.5.2 Indirect Advantages of Labor Quality 10.5.3 Institutional Constraints on Wages and labor Costs 10.5. 4 Complementary Labor 10.6 LABOR COST DIFFERENTIALS AND EMPLOYER LOCATIONS WITHIN AN URBAN LABOR MARKETAREA 10.7 SUMMARY TECHNICAL TERMS INTRODUCED IN THIS CHAPTER 104 Spatial mobility ENDNOTES 11 How egions Develop 106 11. 1 SOME BASIC TRENDS AND QUESTIONS 11. 1. 1 Relative Regional Growth in Population. 107 11.1.2 Regional Trends in Per Capita Income 11.1.3 Regional Structural Changes 108 11.2 WHAT CAUSES REGIONAL GROWTH? 109 11.2. 1 Self-Reinforcing and Self-Limiting Effects 11. 2. 2 Demand and Supply as Determinants of Regional Development 109 11. 3 THE ROLE OF DEMAND 11.3. 1 Economic Base Theory and Studies 109 11.3.2 Regional Input-Output Analysis lI 11. 4 THE ROLE OF SUPPLY 11.5 INTERREGIONAL TRADE AND FACTOR MOVEMENTS l14 11.5. 1 Mobility of Labor and Capital Among Regions 11.6 INTERREGIONAL CONVERGENCE l15 11.7 THE ROLE OF CITIES IN REGIONAL DEVELOPMENT 117 11. 8 EXTERNAL AND INTERNAL FACTORS IN REGIONAL DEVELOPMENT l18 11.9 SUMMARY l18 APPENDIX 11-1 Further Explanation of Basic Steps in Input-Output Analysis APPENDIX 11-2 120 Example of an Input-Output Table with Households Included as an Endogenous Activity ENDNOTES 12 Regional Objectives and Policies 12. 1 THE GROWING CONCERN WITH REGIONAL DEVELOPMENT 123 12.2 OBJECTIVES 125 12.2. 1 Individual and Social Welfare Criteria. 12.2.2 Regional Economic Growth as a goal 12.2.3 Regional Objectives in a National Setting 12. 3 REGIONAL PATHOLOGY: THE EMERGENCE OF"PROBLEM AREAS 12.3. 1 Backward Regions 128 12.3.2 Developed Regions in Recession 12.3.3 Excessive Growth and Concentration 12.3. 4 Comparison of Characteristics of Problem Areas 130 12.3.5 Regional Structure and Economic Health 12. 4 THE AVAILABLE TOOL 12.5 BASIC ISSUES OF REGIONAL DEVELOPMENT STRATEGY 12.5.1 The Four Issues 12.5.2 Should Jobs Move to People, or People to Jobs? 133 12.6 THE ROLE OF GROWTH CENTERS 12.6. 1 Applicability of the Growth-Center Strategy to Different Types of Problem Areas 135 12.6.2 Justification for Focusing Employment Stimulus in Growth Centers 12. 6. 3 Size and Number of Growth Centers 136 12.6.4 Migration to growth Centers 137

4 10.3.1 Work Location Preferences and Labor Mobility..................................................................................... 94 10.3.2 Who Migrates: Why, When, and Where?.............................................................................................. 95 10.4 LABOR ORIENTATION: THE DEMAND FOR LABOR AT A LOCATION .............................................. 99 10.5 THE RATIONALE OF LABOR COST DIFFERENTIALS ..................................................................... 100 10.5.1 Where Are Labor Costs Low? ........................................................................................................... 100 10.5.2 Indirect Advantages of Labor Quality ................................................................................................ 101 10.5.3 Institutional Constraints on Wages and Labor Costs............................................................................. 101 10.5.4 Complementary Labor ..................................................................................................................... 102 10.6 LABOR COST DIFFERENTIALS AND EMPLOYER LOCATIONS WITHIN AN URBAN LABOR MARKET AREA...................................................................................................................................... 102 10.7 SUMMARY...................................................................................................................................... 103 TECHNICAL TERMS INTRODUCED IN THIS CHAPTER......................................................................... 104 Spatial mobility........................................................................................................................................ 104 ENDNOTES ............................................................................................................................................ 105 11 How Regions Develop........................................................................................................................ 106 11.1 SOME BASIC TRENDS AND QUESTIONS........................................................................................ 107 11.1.1 Relative Regional Growth in Population............................................................................................. 107 11.1.2 Regional Trends in Per Capita Income................................................................................................ 107 11.1.3 Regional Structural Changes............................................................................................................. 108 11.2 WHAT CAUSES REGIONAL GROWTH? ........................................................................................... 109 11.2.1 Self-Reinforcing and Self-Limiting Effects......................................................................................... 109 11.2.2 Demand and Supply as Determinants of Regional Development............................................................ 109 11.3 THE ROLE OF DEMAND ................................................................................................................. 109 11.3.1 Economic Base Theory and Studies................................................................................................... 109 11.3.2 Regional Input-Output Analysis .........................................................................................................111 11.4 THE ROLE OF SUPPLY.....................................................................................................................113 11.5 INTERREGIONAL TRADE AND FACTOR MOVEMENTS...................................................................114 11.5.1 Mobility of Labor and Capital Among Regions....................................................................................114 11.6 INTERREGIONAL CONVERGENCE..................................................................................................115 11.7 THE ROLE OF CITIES IN REGIONAL DEVELOPMENT .....................................................................117 11.8 EXTERNAL AND INTERNAL FACTORS IN REGIONAL DEVELOPMENT..........................................118 11.9 SUMMARY .......................................................................................................................................118 APPENDIX 11-1.......................................................................................................................................119 Further Explanation of Basic Steps in Input-Output Analysis...........................................................................119 APPENDIX 11-2...................................................................................................................................... 120 Example of an Input-Output Table with Households Included as an Endogenous Activity................................... 120 ENDNOTES ............................................................................................................................................ 121 12 Regional Objectives and Policies......................................................................................................... 123 12.1 THE GROWING CONCERN WITH REGIONAL DEVELOPMENT ...................................................... 123 12.2 OBJECTIVES................................................................................................................................... 125 12.2.1 Individual and Social Welfare Criteria................................................................................................ 125 12.2.2 Regional Economic Growth as a Goal................................................................................................ 126 12.2.3 Regional Objectives in a National Setting........................................................................................... 126 12.3 REGIONAL PATHOLOGY: THE EMERGENCE OF "PROBLEM AREAS" ............................................ 128 12.3.1 Backward Regions .......................................................................................................................... 128 12.3.2 Developed Regions in Recession....................................................................................................... 128 12.3.3 Excessive Growth and Concentration................................................................................................. 129 12.3.4 Comparison of Characteristics of Problem Areas................................................................................. 130 12.3.5 Regional Structure and Economic Health ........................................................................................... 130 12.4 THE AVAILABLE TOOLS ................................................................................................................. 131 12.5 BASIC ISSUES OF REGIONAL DEVELOPMENT STRATEGY ........................................................... 132 12.5.1 The Four Issues............................................................................................................................... 132 12.5.2 Should Jobs Move to People, or People to Jobs?.................................................................................. 133 12.6 THE ROLE OF GROWTH CENTERS................................................................................................. 134 12.6.1 Applicability of the Growth-Center Strategy to Different Types of Problem Areas ................................... 135 12.6.2 Justification for Focusing Employment Stimulus in Growth Centers...................................................... 135 12.6.3 Size and Number of Growth Centers.................................................................................................. 136 12.6.4 Migration to Growth Centers............................................................................................................ 137

12. 7 ASPECTS OF UNITED STATES REGIONAL DEVELOPMENT PROGRAMS 12.7.1 ARA and EDA 138 12. 7. 2 The Regional Commissions 12. 8 SUMMARY .140 TECHNICAL TERMS INTRODUCED IN THIS CHAPTER People prosperity APPENDIX 12-1 The Shift-Share Analysis of Components of Regional Activity Growth See section 12.3.2 and 12.3.5 ENDNOTES 142 13.1 INTRODUCTION 13.2 DOWNTOWN: PROBLEMS AND RESPONSES 145 13.2. 1 Declining Levels of Activity 13.2. 2 Congestion 13.2.3 Amenit 13.2.4 Some Responses 13. 3 URBAN POVERTY 147 13.3. 1 Dimensions of Urban Poverty 13.3.2 Some Policy Consideration 148 13.4 TRANSPORTING PEOPLE 149 13.4. 1 Some Transport Problems 13. 4.2 Approaches to Solution 0 13.5 URBAN FISCAL DISTRESS 13.5.1 Some Economic Effects of Fiscal Distress 13.5.2 Some Problems and Policy Responses 153 13.5.3 Federal Programs for Urban Development 13.6 THE VALUE OF CHOICE 155 13. 7 SUMMARY TECHNICAL TERMS INTRODUCED IN THIS CHAPTER Ghetto Congestion tol 156 ELECTED READINGS ENDNOTES

5 12.7 ASPECTS OF UNITED STATES REGIONAL DEVELOPMENT PROGRAMS ....................................... 138 12.7.1 ARA and EDA................................................................................................................................ 138 12.7.2 The Regional Commissions .............................................................................................................. 139 12.8 SUMMARY...................................................................................................................................... 140 TECHNICAL TERMS INTRODUCED IN THIS CHAPTER......................................................................... 140 People prosperity...................................................................................................................................... 140 APPENDIX 12-1...................................................................................................................................... 141 The Shift-Share Analysis of Components of Regional Activity Growth............................................................ 141 See section 12.3.2 and 12.3.5...................................................................................................................... 141 ENDNOTES ............................................................................................................................................ 142 13.1 INTRODUCTION ............................................................................................................................. 145 13.2 DOWNTOWN: PROBLEMS AND RESPONSES ................................................................................. 145 13.2.1 Declining Levels of Activity............................................................................................................. 145 13.2.2 Congestion..................................................................................................................................... 146 13.2.3 Amenity......................................................................................................................................... 146 13.2.4 Some Responses ............................................................................................................................. 146 13.3 URBAN POVERTY........................................................................................................................... 147 13.3.1 Dimensions of Urban Poverty........................................................................................................... 147 13.3.2 Some Policy Considerations............................................................................................................. 148 13.4 TRANSPORTING PEOPLE................................................................................................................ 149 13.4.1 Some Transport Problems................................................................................................................. 150 13.4.2 Approaches to Solution.................................................................................................................... 150 13.5 URBAN FISCAL DISTRESS.............................................................................................................. 152 13.5.1 Some Economic Effects of Fiscal Distress.......................................................................................... 152 13.5.2 Some Problems and Policy Responses ............................................................................................... 153 13.5.3 Federal Programs for Urban Development.......................................................................................... 154 13.6 THE VALUE OF CHOICE ................................................................................................................. 155 13.7 SUMMARY...................................................................................................................................... 156 TECHNICAL TERMS INTRODUCED IN THIS CHAPTER......................................................................... 156 Ghetto ..................................................................................................................................................... 156 Congestion costs....................................................................................................................................... 156 Congestion tolls........................................................................................................................................ 156 SELECTED READINGS........................................................................................................................... 156 ENDNOTES ............................................................................................................................................ 157