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11.481J Regional Economic Theories, Accounts, and Techniques

 

MIT 11.481J, 1.284J

Spring 1999

Karen R. Polenske

Peilei Fan

REGIONAL ECONOMIC THEORIES, ACCOUNTS, AND TECHNIQUES

 

Department of Urban Studies and Planning

Massachusetts Institute of Technology

Tuesdays and Thursdays, 9:00-10:30 a.m.

First Class: Tuesday, February 2, 1999

Room: 4-159

Credit Units: 3-0-9 H-LEVEL Grad Credit

Prerequisites: Introductory economics class or

permission of professor

Class Description

Surveys classical and new theories of regional growth, factor mobility, clustering, networks, industrial and regional restructuring, and global supply chains from a political-economy perspective. The basic conceptual frameworks, main assumptions, and arguments for and against the use of each by scholars and practitioners will be covered. Special emphasis is given to recent transformations in regional economies throughout the world and to the implications these changes have for the theories and research methods used by regional economists. Examines and critiques the accounting frameworks used to measure regional economic growth; reviews multipliers, backward and forward linkages, supply chains, and other measures used to assess employment and environmental impacts and infrastructure investments, accounting for measurement problems, such as the underground economy. Assesses price indices, employment and industrial location measures, and shift-share analyses. Discussions focus on U.S. and foreign applications.

Students are expected to have had a thorough introduction to the relevant microeconomic, macroeconomic, and political economy theories prior to taking this class. Half of the problem sets are short essays or literature reviews on specific regional theories and the other half cover important quantitative techniques used in the regional planning field.

Readings will relate mainly to the United States, but pertinent material on foreign countries will be covered in lectures. In cases where other classes are available in our department that cover the material in more depth, such as project evaluation, benefit-cost analysis, urban economics, and municipal and public finance, we have either covered it only briefly here or omitted it entirely. These are important areas of study, and students interested in specializing in regional and urban economics should take an entire class in them. The central focus of this class will be on alternative ways in which the issues of growth and restructuring can be examined in industrialized and developing countries.

Class Requirements

1. Weekly Readings--Students are expected to do the required readings listed in the class outline prior to attending a lecture and are urged to bring up opposing points of view in class as well as in person with the staff. Required readings are on reserve at Rotch Library.

Some of the readings can be skimmed; others should be read with care. Guidance on this will be provided as the semester proceeds. Suggested readings are intended for later reference by students. Ph.D. students expecting to take general exams in Regional and Urban Economics should refer to the exam syllabus for any additional readings they need to cover. Because many of the suggested readings are intended only for advanced students, they are not available in the reader.

Students specializing in regional economics may want to buy one or more of the following books (those marked with an * are required and are at the MIT Coop; those marked with ** are suggested and are at the MIT COOP:

* Avrom Bendavid-Val. 1991. Regional and Local Economic Analysis for Practitioners. New York, NY: Praeger Publishers.

Albert O. Hirschman. 1988. The Strategy of Economic Development. Boulder, CO: Westview Press. (It is currently out-of-print.)

** Paul Krugman. 1991. Geography and Trade. Cambridge, MA: The MIT Press.

** Paul Krugman. 1995. Development, Geography, and Economic Theory. Cambridge, MA: The MIT Press.

Ann R. Markusen. 1987. Regions: The Economics and Politics of Territory. Totowa, NJ: Rowman & Littlefield.

Ronald E. Miller and Peter D. Blair. 1985. Input-Output Analysis: Foundations and Extensions. Englewood Cliffs, NJ: Prentice-Hall, Inc.

Harry W. Richardson. 1979. Regional Economics. Urbana, IL: University of Illinois Press.

*Dani Rodrik. 1997. Has Globalization Gone Too Far? Washington, DC: Institute for International Economics.

U.S. Department of Labor, Bureau of Labor Statistics. 1997. BLS Handbook of Methods. Bulletin 2490 (April). Washington, DC: U. S. Government Printing Office.

2. Problem Sets--Five problem sets will be required. The grade for the class will be based upon the problem set scores; each problem set will have an equal weight in determining the final grade, unless otherwise indicated. The first two problem sets will be short essays or book reviews concerning major regional theories. The next two problems sets will involve working with data and EXCEL (or LOTUS 123). For the final problem set, students will be able to choose either to do another essay-type question or another quantitative one. Students will be introduced to any special computer techniques prior to their use on the computer. Problem sets must be submitted on the day specified. Five points will be deducted for each day a problem set is late.

Please note that students are encouraged to work together on thinking about each problem set; however, each member of the group must do a fair share of the work, and each student in the group must submit a separate answer that represents her/his own thinking. The names of the students in the group must be indicated on the answer.

There will be no midterm or final exam.

3. Class Evaluation--Students will be required to fill out a class evaluation during the last week of the class.

Office Hours

   Instructor         Room     Phone           Days                Hours
Karen R. Polenske     9-535   253-6881  Wednesday, Thursday    10:30am-noon
Peilei Fan            9-543   258-7706  Friday                  2:30-4:30	                                  

Hours other than those listed may be arranged by appointment.

Class Schedule

                                                              Reading     Problem
Date                          Topic                            List         Set
                                                              Se-ction       Due    

2/02 Introduction I

REGIONAL ECONOMIC THEORIES

2/04 Regional Growth Theories--Part I II.A

2/09 Regional Growth Theories--Part II II.A

2/11 Neoclassical Location Theories II.B

2/16 NO CLASS--MONDAY'S SCHEDULE OBSERVED

2/18 Alternative Location Theories II.B

2/23 Labor Mobility Theories II.C 1

2/25 Factor Mobility Theories II.C

3/02 Interregional Trade Theories II.D

3/04 Restructuring Theories--Part I II.E

3/09 Restructuring Theories--Part II II.F

3/11 Restructuring Theories--Part III, guest lecturer II.G

3/16 Restructuring Theories--Part IV II.H

3/18 Overview of Economic Accounts III.A 2

3/23 SPRING VACATION

3/25 SPRING VACATION

3/30 Regional and Multiregional Accounting Structures--Part I III.B

4/01 Regional and Multiregional Accounting Structures--Part II III.B

4/06 Uses of Accounts: Linkage Analyses IV.A 3

4/08 Uses of Accounts: Economic Base and Input-Output

Multipliers IV.B

4/13 Uses of Accounts: Input-Output Multipliers, Environmental IV.C

4/15 Uses of Accounts: Social Accounting Matrices, Structural

Analyses and Forecasting IV.D

 
                                                              Reading     Problem
Date                          Topic                            List         Set
                                                              Se-ction       Due    

REGIONAL, INTERREGIONAL, AND MULTIREGIONAL INPUT-OUTPUT ACCOUNTS

4/20 HOLIDAY--PATRIOT'S DAY

4/22 Accounting Issues and Concepts: Boundaries--Part I V.A 4

Imputations

4/27 Accounting Issues and Concepts: Boundaries--Part II V.B

Environmental Accounting

4/29 Accounting Issues and Concepts: Boundaries--Part III V.C

Underground Economy

TECHNIQUES FOR EVALUATING STRUCTURAL CHANGE

5/04 Shift-Share Analyses VI.A

5/06 Price Indices VI.B

5/11 Employment Measures VI.C 5 or 6 *

5/13 Productivity and summary VI.D

 

* Students will select which of these two problem sets they will do--either number 5 or number 6.

11.481 Outline and Readings

This class provides an extensive survey of the field of regional economic theories, accounts, and techniques. Readings covered in complementary classes are excluded from the list of readings. Only required readings are on reserve at Rotch Library.

I. INTRODUCTION

Required Readings

Kenichi Ohmae. 1995. "Putting Global Logic First," Harvard Business Review, January-February, pp. 119-125. [note: p. 121 is not relevant.]

Karen R. Polenske. n.d. "Boundaries, Economies, and Regions: New Visions." June 1996.

Suggested Readings

Ann R. Markusen. 1987. Regions: The Economics and Politics of Territory. Totowa, NJ: Rowman & Littlefield, Publishers, pp. 249-266.

John R. Meyer. 1968. "Regional Economics: A Survey." In Regional Analysis, edited by L. Needleman. Harmondsworth, England: Penguin Books, Ltd., pp. 19-60.

Harry W. Richardson. 1978. "The State of Regional Economics: A Survey Article," International Regional Science Review, Vol. 3, No. 1 (Fall), pp. 1-48.

 

II. REGIONAL ECONOMIC THEORIES

II.A. Regional Growth Theories--Part I

Required Readings

E.M. Hoover and F. Giarriantani. 1984. An Introduction to Regional Economics. New York: Alfred A. Knopf, pp. 303-345.

Denise DiPasquale and William C. Wheaton. 1996. Urban Economics and Real Estate Markets. Englewood Cliffs, NJ: Prentice Hall, pp. 149-181.

John Rees and Howard A. Stafford. 1986. "Theories of Regional Growth and Industrial Location: Their Relevance for Understanding High-Technology Complexes." In Technology, Regions, and Policy, edited by John Rees. Totowa, NJ: Rowman & Littlefield, pp. 23-50.

Karen R. Polenske. 1994. "Resource Implications of Transformations in Property Rights." Revised version of paper presented at the 40th North American Regional Science Association Meetings, Houston, Texas, November 1993. (Manuscript)

Suggested Readings

Gillian Hart. 1989. "The Growth Linkages Controversy: Some Lessons from the Muda Case." The Journal of Development, Vol. 25, No. 4, pp. 571-575.

Albert O. Hirschman. 1958. The Strategy of Economic Development. New Haven, CT: Yale University Press, pp. 50-75.

John B. Parr. 1973. "Growth Poles, Regional Development, and Central Place Theory," Papers of the Regional Science Association, Vol. 31,

pp. 173-212.

Karen R. Polenske. 1988. "Growth-Pole Theory and Strategy Reconsidered: Domination, Linkages, and Distribution." In Regional Economic Development: Essays in Honour of François Perroux, edited by Benjamin Higgins and Donald J. Savoie. Boston: Unwin-Hyman, pp. 91-111.

 

II.A Regional Growth Theories--Part II

Required Readings

R. D. Norton and J. Rees. 1979. "The Product Cycle and the Spatial Decentralization of American Manufacturing," Regional Studies, Vol. 13, No. 2, pp. 141-151.

Ann Markusen. 1985. Profit Cycles, Oligopoly, and Regional Development. Cambridge, MA: The MIT Press, pp. 15-50.

Chris DeBresson and Fernand Amesse. 1991. "Networks of Innovators: A Review and Introduction to the Issue. Research Policy, Vol. 20, No. 5 (October), pp. 363-379.

Shahid Yusuf and Weiping Wu. 1997. "The Dynamics of Urban Growth: Location, Size, Structure, and Reforms." The Dynamics of Urban Growth in Three Chinese Cities. New York: Oxford University Press, pp. 1-17.

Suggested Readings

Michael Storper. 1985. "Oligopoly and the Product Cycle: Essentialism in Economic Geography," Economic Geography, Vol. 61,

No. 3, pp. 260-282.

Ann Markusen. 1994. "The Interaction Between Regional and Industrial Policies: Evidence from Four Countries (Korea, Brazil, Japan, and the United States)," The Proceedings of the World Bank's Annual Conference on Development Economics 1994. Washington, DC: The World Bank, 1995, pp. 279-298.

Louis T. Wells, Jr. 1972. "The Product Life Cycle Approach." In The Product Life Cycle and International Trade, edited by Louis T. Wells, Jr. Cambridge, MA: Division of Research, Graduate School of Business Administration, Harvard University, pp. 3-33.

II.B. Orthodox Location Theories

Required Readings

James Heilbrun. 1981. Urban Economics and Public Policy. 2nd Ed. New York: St. Martin's Press, pp. 87-116.

Paul Krugman. 1995. Development, Geography, and Economic Theory. Cambridge, MA: The MIT Press, pp. 31-59.

Suggested Readings

William Alonso. 1975. "Location Theory." In Regional Policy, edited by John Friedmann and William Alonso. Cambridge, MA: The MIT Press, pp. 35-63.

Douglass C. North. 1975. "Location Theory and Regional Economic Growth." In Regional Policy, edited by John Friedmann and William Alonso. Cambridge, MA: The MIT Press, pp. 332-347.

Harry W. Richardson. 1979. Regional Economics. Urbana, IL: University of Illinois Press, pp. 38-43, 53-70.

Roger W. Schmenner. 1982. Making Business Location Decisions. Englewood Cliffs, NJ: Prentice-Hall, pp. 42-59.

George Treyz and Benjamin Stevens. 1980. "Location Analysis for Multiregional Modeling." In Modeling the Multiregional Economic System, edited by F. Gerard Adams and Norman J. Glickman. Lexington, MA: D.C. Heath and Company, Lexington Books, pp. 75-87.

II.B. Nonorthodox Location Theories

Required Readings

Gordon L. Clark and Neil Wrigley. 1997. "The Spatial Configuration of the Firm and the Management of Sunk Costs." Economic Geography, Vol. 73, No. 3, pp. 285-304.

Michael Storper and Richard Walker. 1989. The Capitalist Imperative: Territory, Technology, and Industrial Growth. Oxford, UK: Basil Blackwell, pp. 70-124.

Doreen Massey. 1979. "A Critical Evaluation of Industrial Location Theory." In Spatial Analysis, Industry, and the Industrial Environment, edited by R.E. Ian Hamilton and G.J.R. Linge. Vol. I New York: John Wiley & Sons, pp. 57-72.

Suggested Readings

Richard Walker. 1988. " The Geographical Organization of Production Systems," Environment and Planning D: Society & Space, Vol. 6,

pp. 397-408.

II.C. Labor Mobility and Globalization Theories

Required Readings

John R. Harris and Michael P. Todaro. 1970. "Migration, Unemployment, and Development: A Two-Sector Analysis," American Economic Review, Vol. 60, No. 1 (March), pp. 126-142.

Gordon L. Clark. 1983. Interregional Migration, National Policy, and Social Justice. Totowa, NJ: Rowman & Allanheld, pp. 77-102.

Miller, Glenn H., Jr. 1995. "Dynamics of the U.S. Interstate Migration System, 1975-1992." Growth and Change, Vol. 26 (Winter), pp. 139-160.

Suggested Readings

Michael J. Greenwood. 1975. "Research on Internal Migration in the U.S.: A Survey." Journal of Economic Literature, Vol. 13, No. 1, pp. 397-433.

R. J. Johnstone. 1986. "The State, the Region, and the Division of Labor." In Production, Work, and Territory, edited by Michael Storper and Allan J. Scott. Boston, MA: Allen and Unwin, pp. 265-280.

Saskia Sassen-Koob. 198-4. "The New Labor Demand in Global Cities." In Cities in Transformation: Class, Capital, and the State, edited by Michael Peter Smith. Beverly Hills, CA: Sage Publishing Company.

William C. Wheaton. 1979. "Area Wages, Unemployment, and Interregional Factor Mobility." In Interregional Movements and Regional Growth, edited by William C. Wheaton. Washington, DC: The Urban Institute, pp. 1-12.

II.C. Factor Mobility and Globalization Theories

Required Readings

Dani Rodrik 1997. Has Globalization Gone Too Far? Washington, DC: Institute for International Economics, pp. 1-10.

John H. Dunning and Khalil A. Hamdani. 1997. The New Globalism and Developing Countries. New York, NY: United Nations University Press, pp. 79-180.

Barry Bluestone and Bennett Harrison. 1982. The Deindustrialization of America. New York: Basic Books, pp. 25-48.

Robert W. Crandall. 1993. Manufacturing on the Move. Washington, DC: The Brookings Institution, pp. 1-24

Suggested Readings

Bennett Harrison and Barry Bluestone. 1988. The Great U-Turn: Corporate Restructuring and the Polarizing of America. New York: Basic Books, pp. 21-75

Saskia Sassen. 1988. The Mobility of Labor and Capital: A Study in International Investment and Labor Flows. Cambridge, England: Cambridge University Press, pp. 12-25.

Florida, Richard. 1996. "Regional Creative Destruction: Production Organization, Globalization, and the Economic Transformation of the Midwest." Economic Geography. Vol. No. pp. 314-333.

II.D. Interregional Trade Theories

Required Readings

Michael P. Todaro. 1997. 6th Ed. Economic Development. Reading: Addison-Wesley, pp. 419-457.

Börje Johansson and Lars Westin. 1994. "Affinities and Frictions of Trade Networks." The Annals of Regional Science, Vol. 28, pp. 243-261.

Dani Rodrik. 1997. Has Globalization Gone Too Far? Washington, DC: Institute for International Economics, pp. 11-48.

Suggested Readings

Paul Krugman. 1991. Geography and Trade. Cambridge, MA: The MIT Press, pp. 1-34.

J. Moroney and James M. Walker. 1966. "A Regional Test of the Heckscher-Ohlin Hypothesis," Journal of Political Economy, Vol. 74, No. 6 (December), pp. 573-586.

Yutaka Horiba and Richard Kirkpatrick. 1981. "Factor Endowments, Factor Proportions, and the Allocative Efficiency of U.S. Interregional Trade," The Review of Economics and Statistics, Vol. 63, No. 2 (May), pp. 178-187.

II.E. Restructuring Theories--Part I

Required Readings

Michael H. Best. 1990. The New Competition: Institutions of Industrial Restructuring. Cambridge, MA: Harvard University Press, pp. 1-26.

Charles F. Sabel. 1989. "Flexible Specialization and the Re-emergence of Regional Economies." In Reversing Industrial Decline? edited by Paul Hirst and Jonathan Zeitlin. Oxford, UK: Berg, pp. 17-69.

Suggested Readings

John L. Campbell. 1993. "Property Rights and Governance Transformations in Eastern Europe and the United States." In Institutional Change, edited by Sven-Erik Sjöstrand. New York: M.E. Sharpe, pp. 151-170.

Bennett Harrison. 1994. Lean and Mean: The Changing Landscape for Corporate Power in the Age of Flexibility. New York: Basic Books, Inc.

Edward J. Malecki. 1983. "Technology and Regional Development: A Survey," International Regional Science Review, Vol. 8, No. 2, pp. 89-123.

Thierry J. Noyelle. 1983. "The Implications of Industry Restructuring for Spatial Organization in the United States." In Regional Analysis and the New International Division of Labor, edited by Frank Moulaert and Patricia Wilson Salinas, pp. 113-133.

Michael Piore and Charles Sabel. 1984. The Second Industrial Divide. New York, NY: Basic Books, pp. 165-193.

II.F. Restructuring Theories--Part II

Required Readings

Meric S. Gertler. 1995. "`Being There': Proximity, Organization, and Culture in the Development and Adoption of Advanced Manufacturing Technologies," Economic Geography, Vol. 71, No. 1, pp. 1-26.

Martin Hart-Landsberg. 1998. "Contradictions of Capitalist Industrialization in East Asia: A Critique of 'Flying Geese' Theories of Development," Economic Geography, Vol. 74, No. 2, pp. 87-110.

Andrew Sayer and Richard Walker. 1994. "Beyond Fordism and Flexibility." The New Social Economy: Reinventing the Division of Labor. Cambridge, Blackwell, pp. 191-223.

Suggested Readings

Ash Amin and Kevin Robbins. 1990. "Industrial Districts and Regional Development: Limits and Possibilities." and responses by Sabel, Piore, and Storper. In Industrial Districts and Inter-Firm Cooperation in Italy, edited by F. Pyke, G. Becattini, and W. Sengenberger, pp. 185-237.

Gertler, Meric S. 1992. "Flexibility Revisited: Districts, Nation-States, and the Forces of Production," Transactions: Institute of British Geographers, Vol. 17, pp. 259-278.

Herbert Schmitz. 1989. "Flexible Specialization: A New Paradigm of Small-Scale Industrialization?" Brighton, England: University of Sussex, Institute of Development Studies.

II.G. Restructuring Theories--Part III

Required Readings

Lisa M. Ellram. 1991. "Supply-Chain Management: The Industrial Organization Perspective." International Journal of Physical Distribution & Logistics Management, Vol. 21, No. 1, pp. 13-22.

Amy K. Glasmeier and Jeff Kibler. 1996. "Power Shift: The Rising Control of Distributors and Retailers in the Supply Chain for Manufacturing Goods." Urban Geography, Vol. 17, No. 8, pp. 740-757.

Michael Storper. 1997. The Regional World. New York, NY: The Guilford Press, pp. 26-56.

II.H. Restructuring Theories--Part IV

Required Readings

Polenske, Karen R. 1998. "Competition, Collaboration, and Cooperation: An Uneasy Triangle in Networks of Firms and Regions." Submitted for publication.

Charles F. Sabel. 1997. "Constitutional Orders: Trust Building and Response to Change." Contemporary Capitalism: The Embeddedness of Institutions, edited by J. Rogers Hollingsworth and Robert Boyer. Cambridge: Cambridge University Press, pp. 154-188.

Joel M. Podolny and Karen L. Page. 1997. "Network Forms of Organization." Stanford CA: Graduate School of Business.

Suggested Readings

David Campbell and Donald Harris. 1993. "Flexibility in Long-Term Contractual Relationships: The Role of Cooperation," Journal of Law and Society, Vol. 20, No. 2 (Summer), pp. 166-191.

Elinor Ostrom. 1990. Governing the Commons: The Evolution of Institutions for Collective Action. Cambridge, UK: Cambridge University Press, Chapter 2, pp. 29-55.

Charles F. Sabel. 1992. "Studied Trust: Building New Forms of Co-operation in a Volatile Economy." In Industrial Districts and Local Economic Regeneration, edited by Frank Pyke and Werner Sengenberger. Geneva: Institute for Labour Studies, pp. 215-250.

REGIONAL, INTERREGIONAL, AND MULTIREGIONAL INPUT-OUTPUT ACCOUNTS

III.A. Overview of Economic Accounts

Required Readings

Avrom Bendavid-Val. 1991. 4th Ed. Regional and Local Economic Analysis for Practitioners. New York, NY: Praeger Publishers, pp. 41-52.

Suggested Readings

Stan Czamanski. 1973. Regional and Interregional Social Accounting. Lexington, MA: D.C. Heath and Company, Lexington Books, Chapters 1-3.

Hazel Henderson. 1996. "What's Next in the Great Debate About Measuring Wealth and Progress?" Challenge (November-December), pp. 50-56.

Walter Isard. 1990. "Interregional and Regional Input-Output Analysis." In Practical Methods of Regional Science and Empirical Applications: Selected Papers of Walter Isard, edited by Christine Smith. Vol. 2. New York: New York University Press, pp. 79-97.

Karen R. Polenske. 1989. "Historical and New International Perspectives on Input-Output Accounts." In Frontiers of Input-Output Analysis, edited by Ronald E. Miller, Karen R. Polenske, and Adam Z. Rose. New York, NY: Oxford University Press, pp. 37-50.

III.B. Regional and Multiregional Accounting Structures--Part I

Required Readings

Karen R. Polenske and Stephen Fournier. 1993. "Conceptual Input-Output Accounting and Modeling Framework." In Spreadsheet Models for Urban and Regional Analysis, edited by Richard E. Klosterman and Richard K. Brail. New Brunswick, NJ: Center for Urban Policy Research, pp. 205-228.

William A. Schaffer. 1998. A Survey of Regional Economic Models. Atlanta, GA: Georgia Institute of Technology, pp. 48-83.

Suggested Readings

Geoffrey J.D. Hewings. 1985. Regional Input-Output Analysis. Beverly Hills, CA: Sage Publications, pp. 9-37.

Karen R. Polenske. 1980. The U.S. Multiregional Input-Output Accounts and Model. Lexington, MA: D.C. Heath and Company, Lexington Books, Chapters 1-2.

III.B. Regional and Multiregional Accounting Structures--Part II

Required Readings

Ronald E. Miller and Peter D. Blair. 1985. Input-Output Analysis: Foundations and Extensions. Chapter 3. Englewood Cliffs, NJ: Prentice Hall, Inc., pp. 45-99.

Karen R. Polenske. 1995. "Leontief's Spatial Economic Analyses." Structural Change and Economic Dynamics, Vol. 6, pp. 309-318.

Suggested Readings

Leon N. Moses. 1955. "The Stability of Interregional Trading Patterns and Input-Output Analysis," American Economic Review, Vol. 45, No. 5 (December), pp. 803-832.

Harry Richardson. 1977. Regional Economics. Urbana, IL: University of Illinois Press, pp. 179-184.

IV.A. Uses of Accounts: Linkage Analyses

Required Readings

Albert O. Hirschman. 1958. The Strategy of Economic Development. New Haven, CT: Yale University Press, pp. 98-119.

Victor Bulmer-Thomas. 1982. Input-Output Analysis in Developing Countries. New York: John Wiley & Sons Ltd, pp. 190-202.

Karen R. Polenske and Petros Sivitanides. 1990. "Linkages in the Construction Sector." The Annals of Regional Science, Vol. 24, pp. 147-161.

William A. Schaffer. 1998. A Survey of Regional Economic Models. Unpublished book manuscript.

IV.B. Uses of Accounts: Economic Base Multipliers

Required Readings

Avrom Bendavid-Val. 1991. 4th Ed. Regional and Local Economic Analysis for Practitioners. New York, NY: Praeger Publishers, pp. 77-85.

James Heilbrun. 1981. Urban Economics and Public Policy. 2nd Ed. New York: St. Martin's Press, pp. 153-169

Suggested Readings

Richard E. Klosterman and Yichuan Xie. 1993. "ECONBASE: Local Employment Projection." In Spreadsheet Models for Urban and Regional Analysis, edited by Richard E. Klosterman and Richard K. Brail. New Brunswick, NJ: Center for Urban Policy Research, pp. 183-204.

Saul Pleeter. 1980. "Methodologies of Economic Impact Analysis: An Overview." In Economic Impact Analysis: Methodology and Applications, edited by Saul Pleeter. Boston, MA: Martinus Nijhoff Publishing, pp. 7-31.

IV.C. Uses of Accounts: Economic and Environmental Multipliers

Required Readings

Victor Bulmer-Thomas. 1982. Input-Output Analysis in Developing Countries: Sources, Methods, and Applications. New York: John Wiley & Sons, Ltd., pp. 183-197.

Ronald E. Miller and Peter D. Blair. 1985. Input-Output Analysis: Foundations and Extensions. Englewood Cliffs, NJ: Prentice-Hall, Inc., pp. 100-148, 236-265.

Suggested Readings

Walter Isard. 1975. Introduction to Regional Science. Englewood Cliffs, NJ: Prentice-Hall, Inc., pp. 11-31, 112-162.

William H. Miernyk. 1972. "Regional and Interregional Input-Output Models: A Reappraisal." In Spatial, Regional, and Population Economics: Essays in Honor of Edgar M. Hoover, edited by Mark Perlman, Charles L. Leven, and Benjamin Chinitz. New York: Gordon and Breach, pp. 263-292.

Roger F. Riefler. 1973. "Interregional Input-Output: A State of the Arts Survey." In Studies in Economic Planning over Space and Time, edited by George G. Judge and Takashi Takayama. Amsterdam: North-Holland Publishing Co., pp. 133-162.

IV.D. Uses of Accounts: Social Accounting Matrices, Structural Analyses, and Forecasting

Required Readings

Erik Thorbecke. 1998. "Social Accounting Matrices and Social Accounting Analysis." In Methods of Interregional and Regional Analysis, edited by Walter Isard, Iwan J. Aziz, Matthew P. Drennan, Ronald E. Miller, Sidney Saltzman, and Erik Thorbecke. Brookfield, Vt: Ashgate Publishing Company, pp. 281-331.

Karl M. Rich, Alex Winter-Nelson, and Gerald C. Nelson. 1997. "Political Feasibility of Structural Adjustment in Africa: An Application of SAMs Mixed Multipliers." World Development, Vol 25, No. 12, pp. 2105-2114.

Ronald E. Kutscher. 1991. "New BLS Projections: Findings and Implications," Monthly Labor Review (November), pp. 3-12.

Suggested Readings

U.S. Department of Commerce. Bureau of Economic Analysis. 1990. BEA Regional Projections to 2040. Vol. 1. States. Washington, DC: U.S. Government Printing Office (June), pp. M1-M12, 1-5.

Anne P. Carter. 1970. Structural Change in the American Economy. Cambridge, MA: Harvard University Press, Chapter 8.

Norman J. Glickman. 1977. Econometric Analysis of Regional Systems: Explorations in Model Building and Policy Analysis. New York: Academic Press, pp. 37-73.

Benjamin B. King. 1985. "What is a SAM?" In Social Accounting Matrices: A Basis for Planning, edited by Graham Pyatt and Jeffery I. Round. Washington, DC: The World Bank, pp. 17-51.

V.A. Accounting Issues and Concepts: Boundaries--Part I (Imputations)

Required Readings

John W. Kendrick. 1979. "Expanded Imputed Values in the National Income and Product Accounts," Review of Income and Wealth, Vol. 25, No. 4 (December), pp. 349-363.

Victor Bulmer-Thomas. 1982. Input-Output Analysis in Developing Countries: Sources, Methods, and Applications. New York: John Wiley & Sons, Ltd., pp. 139-155

Suggested Readings

Michael Storper and Bennett Harrison. 1991. "Flexibility, Hierarchy, and Regional Development: The Changing Structure of Industrial Production Systems and Their Forms of Governance in the 1990s," Research Policy, Vol. 20 (October), pp. 407-422.

V.B. Accounting Issues and Concepts: Boundaries Part II (Environmental Accounting

Required Readings

Henry M. Peskin and Ernst Lutz. 1990. "A Survey of Resource and Environmental Accounting in Industrialized Countries." Environment Working Paper No. 37. Washington, DC: The World Bank. pp. 1-26.

André Vanoli. 1995. "Reflections on Environmental Accounting Issues." Review of Income and Wealth, Series 41, No. 2 (June), pp. 113-137

V.C. Accounting Issues and Concepts: Boundaries Part III (Underground Economy)

Required Readings

Carol Carson. 1984. "The Underground Economy: An Introduction," Survey of Current Business, Vol. 64, No. 5 (May), pp. 21-37.

Edgar L. Feige. 1990. "Defining and Estimating Underground and Informal Economies: The New Institutional Economics Approach." World Development, Vol 18, No. 7, pp. 989-1002.

Suggested Readings

Edgar L. Feige. 1979. "How Big is the Irregular Economy?" Challenge, November/December, pp. 5-13.

Peter M. Gutmann. 1979. "Statistical Illusions, Mistaken Policies," Challenge, November/December, pp 14-17.

Alejandro Portes, Manuel Castells, and Lauren Benton. 1989. World Underneath: The Origins, Dynamics, and Effects of the Informal Economy. Baltimore, MD: Johns Hopkins University Press, pp. 11-37.

Carl P. Simon and Ann D. Witte. 1982. Beating the System: The Underground Economy. Boston, MA: Auburn House Publishing Company, pp. xi-xvi, 285-296.

TECHNIQUES FOR EVALUATING STRUCTURAL CHANGE

VI.A. Shift-Share Analyses

Required Readings

Avrom Bendavid-Val. 1991. Regional and Local Economic Analysis for Practitioners. 4th Ed. New York, NY: Praeger Publishers, pp. 67-77.

Ann R. Markusen, Helzi Noponen, and Karl Dreissen. 1991. "International Trade, Productivity, and U.S. Regional Job Growth: A Shift-Share Interpretation," International Regional Science Review, Vol. 14, No. 1, pp. 15-40.

Suggested Readings

Richard E. Klosterman, and Yichun Xie. 1993. "Shift-Share: Local Employment Projection." In Spreadsheet Models for Urban and Regional Analysis, edited by Richard E. Klosterman and Richard K. Brail. New Brunswick, NJ: Center for Urban Policy Research, pp. 183-204.

Benjamin H. Stevens and Craig L. Moore. 1980. "A Critical Review of the Literature on Shift-Share as a Forecasting Technique," Journal of Regional Science, Vol. 20, No. 4, pp. 419-437.

VI.B. Price Indices

Required Readings

Thomas H. Wonnacott and Ronald J. Wonnacott. 1990. Introductory Statistics for Business and Economics. 4th Ed. New York: John Wiley and Sons, pp. 664-677.

U.S. Department of Labor, Bureau of Labor Statistics. 1988. BLS Handbook of Methods. Bulletin 2285 (April). Washington, DC: U.S. Government Printing Office, pp. 125-137.

Mark A. Wynne and Fiona D. Sigalla. 1994. "The Consumer Price Index."Economic Review: Federal Reserve Board of Dallas. 2nd Quarter (Summer), pp. 1-22.

Jerry A. Hausman. 1998. "New Products and Price Indexes." NBER Reporter, (Fall), pp. 10-12.

Suggested Readings

Dean Baker. 1996. "The Overstated CPI--Can it Really be True?" Challenge (September-October), pp. 26-33.

Andrew G. Clem and William D. Thomas. 1987. "New Weight Structure being Used for Producer Price Index," Monthly Labor Review, Vol. 110, No. 8, pp. 12-21.

Charles Mason and Clifford Butler. 1987. "New Basket of Goods and Services being Priced in Revised CPI," Monthly Labor Review, Vol. 110, No. 1, pp. 3-22.

Dimitri B. Papdimitriou and L. Randall Wray. 1996. "The Consumer Price Index as a Target of Monetary Policy." Challenge (September -October), pp. 18-24

VI.C. Employment Measures

Required Readings

U.S. Department of Labor, Bureau of Labor Statistics. 1997. BLS Handbook of Methods. Bulletin No. 2490. Washington, DC: U.S. Government Printing Office, pp. 1-41.

VI.D. Productivity

Required Readings

The Economist. 1996 (November 23), pp. 85-86.

Suggested Readings

Olivier Jean Blanchard and Lawrence Katz. 1991. "Regional Evolutions." (November), Cambridge, MA: Department of Economics, Massachusetts Institute of Technology.

David Birch. 1981. "Who Creates Jobs?" The Public Interest, (Fall), pp. 3-14.

Bennett Harrison. 1982. "The Tendency toward Instability and Inequality Underlying the 'Revival' of New England," Papers of the Regional Science Association, Vol. 50, pp. 42-65.

Frank Levy and Richard J. Murnane. 1992. "U.S. Earnings Levels and Earnings Inequality: A Review of Recent Trends and Proposed Explanations," The Journal of Economic Literature, Vol. 30, No. 2 (September).

 

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