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Full-Text Articles in Regional Economics

The Interaction Between Individuals’ Destination Choice And Occupational Choice: A Simultaneous Equation Approach, Christiadi, Brian Cushing Jan 2006

The Interaction Between Individuals’ Destination Choice And Occupational Choice: A Simultaneous Equation Approach, Christiadi, Brian Cushing

Regional Research Institute Working Papers

This study examines the relationship between an individual’s occupation choice and destination choice. It portrays the relationship as an interaction between the supply of occupational skills by individuals and demand by different labor market regions. The analysis applies a two-equation simultaneous system: (1) a multinomial logit model of occupational choice and (2) a conditional logit model of state destination choice. The unusual merger of multinomial logit and conditional logit models in a simultaneous equation framework requires derivation of a unique variancecovariance matrix. The results indicate strong association between supply of (migration) and demand for (industry mix) an individual’s occupational skills. …


Modeling Small Business Growth, Migration Behavior, And Household Income In Appalachia: A Spatial Simultaneous Equations Approach, Gebremeskel H. Gebremariam, Tesfa Gebremedhin, Peter V. Schaeffer Jan 2006

Modeling Small Business Growth, Migration Behavior, And Household Income In Appalachia: A Spatial Simultaneous Equations Approach, Gebremeskel H. Gebremariam, Tesfa Gebremedhin, Peter V. Schaeffer

Regional Research Institute Working Papers

In this paper, a spatial simultaneous equations model of business growth, migration behavior and median household income is empirically estimated. The empirical simultaneous model is developed from the equilibrium relationships among these variables where each variable is assumed to adjust to its equilibrium level with a substantial lag through a partial equilibrium adjustment process. We use Generalized Spatial Three-Stage Least Squares estimator to estimate the empirical model using data from 418 Appalachian counties for 1990- 2000. The results suggest the existence of very strong interdependences among business growth, migration behavior and median household income in the form of feed-back simultaneities, …


Theoretical Perspectives On Industry Clusters, Gashawbeza W. Bekele, Randall Jackson Jan 2006

Theoretical Perspectives On Industry Clusters, Gashawbeza W. Bekele, Randall Jackson

Regional Research Institute Working Papers

The concept of industry clustering has generated much discussion in regional economic development theory and practice in recent years. Yet it is fair to say that an accepted definition or a unified theoretical framework has failed to emerge from the discussion, as the concept often seems to enliven itself under divergent theoretical approaches, including but not limited to work on agglomeration economies, industrial districts, business networks, knowledge spillovers, and regional innovation systems. This paper provides a review of the major theoretical propositions that seek to explain the clustering of economic activity and its presumed link with regional economic development. While …


Quality Of Care In Appalachian Nursing Homes: Doing More With Less?, Mary W. Carter, Shuhui Wang Jan 2006

Quality Of Care In Appalachian Nursing Homes: Doing More With Less?, Mary W. Carter, Shuhui Wang

Regional Research Institute Working Papers

Despite comprising nearly 10% of the nation’s nursing home population, little is known about the quality of care provided by nursing homes located in rural Appalachia. However, anecdotal evidences suggests that the economic disadvantages associated with the Appalachian region may lead to higher concentrations of certain structural and organizational attributes previously shown to affect nursing home quality. In response, this study sought to examine empirically whether nursing homes located in Appalachia differ in the number of deficiency citations received in comparison with nursing homes located elsewhere, and to explore the extent to which factors other than quality of care determine …


County-Level Determinants Of Local Public Services In Appalachia: A Multivariate Spatial Autoregressive Model Approach, Gebremeskel H. Gebremariam, Tesfa Gebremedhin, Peter V. Schaeffer Jan 2006

County-Level Determinants Of Local Public Services In Appalachia: A Multivariate Spatial Autoregressive Model Approach, Gebremeskel H. Gebremariam, Tesfa Gebremedhin, Peter V. Schaeffer

Regional Research Institute Working Papers

A multivariate spatial autoregressive model of local public expenditure determination with autoregressive disturbance is developed and estimated in this paper. The empirical model is developed on the principles of utility maximization of a strictly quasi concave community utility function. The existence of spatial interdependence is tested using Moran’s I statistic and Lagrange Multiplier test statistics for both the spatial error and spatial lag models. The full model is estimated by efficient GMM following Kelejian and Prucha’s (1998) approach using county-level data from 418 Appalachian counties. The results indicate the existence of significant spillover effects among local governments with respect to …


A Dynamic Cge Analysis Of Exhaustible Resources: The Case Of An Oil Exporting Developing Country, Hodjat Ghadimi Jan 2006

A Dynamic Cge Analysis Of Exhaustible Resources: The Case Of An Oil Exporting Developing Country, Hodjat Ghadimi

Regional Research Institute Working Papers

An extensive literature concerned with optimal depletion of an exhaustible resource, with only a few exceptions, ignores the economy-wide and sectoral distribution effects of resource depletion. This paper presents a dynamic computable general equilibrium model to link the underlying natural resource base to economic performance. The model consists of an intra-temporal price endogenous model of a market economy, embedded in an inter-temporal optimal growth and development model. It is an optimization model that determines the optimal development path of the economy, hence, the inter-temporal depletion problem subject to workings of a multi-sector market economy. This general equilibrium approach captures the …


Identifying Spatial Clusters Within U.S. Organic Agriculture, Cheryl Brown, Daniel Eades Jan 2006

Identifying Spatial Clusters Within U.S. Organic Agriculture, Cheryl Brown, Daniel Eades

Regional Research Institute Working Papers

The market for organically produced products has experienced rapid growth in recent decades; however, this growth has not been distributed evenly across the country instead concentrating in certain regions. Employing measures of spatial concentration and association we identify those counties in which organic production is clustered or represents a proportion of the agricultural economy greater than what would be expected by national trends. Results show that spatial clustering of organic agriculture does exist based on data from the U.S. Census of Agriculture on organic farms, acreage, and value of sales. Counties with the largest location quotients for organic production were …


The Influence Of Socioeconomic And Environmental Factors On Health And Obesity In Rural Appalachia, Anura Amarasinghe, Gerard D'Souza, Cheryl Brown, Hyungna Oh Jan 2006

The Influence Of Socioeconomic And Environmental Factors On Health And Obesity In Rural Appalachia, Anura Amarasinghe, Gerard D'Souza, Cheryl Brown, Hyungna Oh

Regional Research Institute Working Papers

A recursive system of ordered self assessed health (SAH) and a binary indicator of obesity were used to investigate the impact of socioeconomic and environmental factors on health and obesity in the predominantly rural Appalachian state of West Virginia. Behavioral Risk Factor Surveillance System (BRFSS) data together with county specific socioeconomic and built environment indicators were used in estimation. Results indicate that an individual’s risk of being obese increases at a decreasing rate with per capita income and age. Marginal impacts show that as the level of education attainment increases, the probability of being obese decreases by 3%. Physical inactivity …


The Impact Of County Level Factors On Obesity In West Virginia, Anura Amarasinghe, Cheryl Brown, Gerard D'Souza, Tatiana Borisova Jan 2006

The Impact Of County Level Factors On Obesity In West Virginia, Anura Amarasinghe, Cheryl Brown, Gerard D'Souza, Tatiana Borisova

Regional Research Institute Working Papers

A panel estimation of county prevalence of obesity indicates that while the percentage of the population with a completed college degree and the number of food stores available per thousand population are negatively and significantly correlated to county obesity rates, mean commuting time, average annual wage and the total number of business establishments per thousand population positively and significantly contribute to obesity. Educational attainment that raises both human and social capital, as well as changes in the built environment can play a vital role in controlling obesity in West Virginia (WV).


A Spatial Analysis Of Obesity In West Virginia, Anura Amarasinghe, Gerard D'Souza, Cheryl Brown, Tatiana Borisova Jan 2006

A Spatial Analysis Of Obesity In West Virginia, Anura Amarasinghe, Gerard D'Souza, Cheryl Brown, Tatiana Borisova

Regional Research Institute Working Papers

A spatial panel data analysis at the county level examines how individual food consumption, recreational, and lifestyle choices ― against a backdrop of changing demographic, built environment, and policy factors ― leads to obesity. Results suggest that obesity tends to be spatially autocorrelated; in addition to hereditary factors and lifestyle choices, it is also caused by sprawl and lack of land use planning. Policy measures which stimulate educational attainment, poverty alleviation, and promotion of better land use planning and best consumption practices (BCPs) could both reduce obesity and result in sustainable development of regions where obesity is prevalent and the …


Specification Of Functional Form In Models Of Population Migration, Brian Cushing Jan 2005

Specification Of Functional Form In Models Of Population Migration, Brian Cushing

Regional Research Institute Working Papers

A characteristic of the empirical literature on internal population migration is widely varying results and often conflicting conclusions regarding relative importance of explanatory factors. There are a number of possible explanations for these conflicting findings, some of which have received little attention in the literature. This paper focuses on one major specification issue in the context of an aggregate migration model: choice of functional form. The discussion lays out a theoretical basis for choosing functional form. It follows this with a comparison of empirical results for several functional forms. Statistical tests are used to choose the most appropriate functional form.


Commodity Price Fluctuations: A Century Of Analysis, Walter C. Labys Jan 2005

Commodity Price Fluctuations: A Century Of Analysis, Walter C. Labys

Regional Research Institute Working Papers

Commodity prices again! The twentieth century has only been the latest spectator to the impacts and importance of commodity price fluctuations. It is reasonably well known that commodity price records have come down to us from the ancient civilizations of India, Mesopotamia, Egypt, Greece and Rome. Earlier in the century, formal research began on the relationships between agricultural demand, supply and prices in a market context. This research not only evolved in sophistication but extended to mineral and energy commodities. Also at the beginning of the century, some of the earliest work took place on applying statistical methods to price …


Assessing Demographic Changes And Income Inequalities: A Case Study Of West Virginia, Yohannes G. Hailu, Tesfa Gebremedhin, Randall Jackson Jan 2005

Assessing Demographic Changes And Income Inequalities: A Case Study Of West Virginia, Yohannes G. Hailu, Tesfa Gebremedhin, Randall Jackson

Regional Research Institute Working Papers

The study examines the trends in demographic changes and income inequalities in West Virginia from 1990 to 2000. The relationship between economic growth and income inequality is tested using a system of equations model and county level data. The empirical results indicate that except for 65 years and above age group, income inequality increased in all other age groups. The highest increase was in the age group under 25 years and those 35 to 44 years. Using 3-Stage-Least-Squares estimations, the endogenous dependent variable per capita income growth was positively related with population and employment growth, but it is significantly and …


Factors Influencing Venture Capital Availability In Rural States: Possible Lessons Learned From West Virginia, David W. Hughes, Kris Mallory, Mihaela A. Szabo Jan 2005

Factors Influencing Venture Capital Availability In Rural States: Possible Lessons Learned From West Virginia, David W. Hughes, Kris Mallory, Mihaela A. Szabo

Regional Research Institute Working Papers

Venture capital has been identified by many as a vital element in the rapid economic growth of certain regions. The lack of access to capital, especially equity capital, has been identified as a major constraint to the economic growth of rural areas (i.e., venture capital access, as a centripetal force, concentrates rather than disperses economic activity). Researchers have advanced a focus on primarily urban sectors, such as information technologies, higher administration costs due to a lack of deal flow, and a limited support network for entrepreneurs as explanations for the lack of venture capital in rural areas. Yet, some venture …


Loglinear Residual Tests Of Moran’S I Autocorrelation: An Application To Kentucky Breast Cancer Data, Ge Lin, Tonglin Zhang Jan 2005

Loglinear Residual Tests Of Moran’S I Autocorrelation: An Application To Kentucky Breast Cancer Data, Ge Lin, Tonglin Zhang

Regional Research Institute Working Papers

Spatial regressions have been widely used, but their use with the permutation tests of residuals either in linear or loglinear models is rarely seen. In the present study, we have linked the Cliff-Ord permutation test of Moran’s I on linear regression errors to loglinear regression residuals under asymptotic normality. We devised both Pearson residual Moran’s IP R and deviance residual Moran’s IDR tests and applied them to a set of log-rate models for early stage and late-stage breast cancer together with socioeconomic and access-to-care data in Kentucky. The results showed that socioeconomic and access-to-care variables were sufficient to account for …


Cross-Border Shopping And The Sales Tax: A Reexamination Of Food Purchases In West Virginia, Mehmet Serkan Tosun, Mark Skidmore Jan 2005

Cross-Border Shopping And The Sales Tax: A Reexamination Of Food Purchases In West Virginia, Mehmet Serkan Tosun, Mark Skidmore

Regional Research Institute Working Papers

In this paper we present new evidence of cross-border shopping in response to sales taxation. While several instructive studies provide estimates of the cross-border shopping effect, we utilize a unique opportunity to evaluate the effect of a large discrete change in sales tax policy. Using county level data on food income and sales tax data for West Virginia over the 1982-2000 period we estimate that for every one-percentage point increase in the county relative price ratio due to sales tax change, the per capita food income decreases by about 0.7 percent. Our estimates indicate that food sales fell in West …


The Role Of Welfare And Space In The Migration Of The Poor, Brian Cushing Jan 2005

The Role Of Welfare And Space In The Migration Of The Poor, Brian Cushing

Regional Research Institute Working Papers

This study investigates whether interstate differences in welfare benefits affected destination choices of low-income households in the United States during the 1985-90 period. It considers place-to-place migration decisions of poor single-parent females within a conditional logit framework. The research develops an array of variables that add a substantial spatial component to the analysis. The empirical results reconcile conclusions of recent academic literature with the views of state policy officials, but in a somewhat unexpected way. This study finds only modest evidence of a welfare magnet effect, and only for contiguous states. On the other hand, the study strongly confirms the …


Formula Apportionment, Tax Competition, And The Provision Of Local Goods, Santiago M. Pinto Jan 2005

Formula Apportionment, Tax Competition, And The Provision Of Local Goods, Santiago M. Pinto

Regional Research Institute Working Papers

The paper develops an analytical framework where regional governments strategically determine the structure of the corporate profit tax system and profits are regionally allocated using an apportionment formula. Two important results emerge in a symmetric Nash equilibrium: (i) investment decisions are distorted, i.e., regional governments will not allow complete deduction of capital costs from taxable corporate profits; and (ii) there is underprovision of the good provided by the regional government, consistent with the literature on property tax competition. The paper also shows that the degree of underprovision may be less severe when the formula employs sales shares to apportion corporate …


Method For Constructing Commodity By Industry Flow Matrices, Randall Jackson, Walter R. Schwarm, Yasuhide Okuyama, Samia Islam Jan 2004

Method For Constructing Commodity By Industry Flow Matrices, Randall Jackson, Walter R. Schwarm, Yasuhide Okuyama, Samia Islam

Regional Research Institute Working Papers

This paper describes the method used to construct an interregional Commodity by Industry Flow matrix for the United States. The interregional flow matrix method involves the construction of single-state (and DC) SAMs using data from IMPLAN. Once complete, the interregional flows connecting states are estimated using a method based on the Commodity Flow Survey data published by the Bureau of Transportations Statistics. The estimated interregional SAM is then adjusted to insure the integrity of intraregional and system-wide accounts. The procedures have been designed with the goal of ease of replicability, so that updates and extensions of the database can be …


Developing Integrated Object-Oriented Conception Of Geomarketing As A Tool For Promotion Of Regional Sustainable Development: The Case Study Of Ukraine, Volodymyr M. Anderson Jan 2004

Developing Integrated Object-Oriented Conception Of Geomarketing As A Tool For Promotion Of Regional Sustainable Development: The Case Study Of Ukraine, Volodymyr M. Anderson

Regional Research Institute Working Papers

In the paper we propose and discuss new vision of geomarketing as a tool for promotion of regional sustainable development. Integrated object-oriented conception of geomarketing was designed by adoption and elaboration of some new ideas and approaches, such as “place marketing”, “non-profit marketing”, “counter-marketing”, “collaborative spatial decision-making”, “endogenous regional development”, “regional sustainable development”, “public-private partnership”. We explore how geomarketing in such a comprehension may be implemented in business and public administration, regional development policy making on example of some Ukrainian firms, regional governments, and communities. The proposed geomarketing conception is based on integration of three different interpretations of geomarketing: 1) …


Non-Linear Input-Output Models: Practicability And Potential, Guy R. West, Randall Jackson Jan 2004

Non-Linear Input-Output Models: Practicability And Potential, Guy R. West, Randall Jackson

Regional Research Institute Working Papers

The conventional input-output model has been widely criticised, both justly and unjustly, for its limiting assumptions. One of these assumptions is homogeneity of degree one. This paper explores some approaches to minimise this limitation of traditional input-output analysis by removing the assumption of linear coefficients for the intermediate and household sectors. As is well documented in the literature, the household sector is the dominant component of multiplier effects in an input-output model, so using marginal income and expenditure coefficients for the household sector provides a more accurate estimate of the multiplier effects. A price model can then utilised to estimate …


Labor Market Size And Unemployment Duration: A Theoretical Note, Peter V. Schaeffer, Tesfa Gebremedhin Jan 2004

Labor Market Size And Unemployment Duration: A Theoretical Note, Peter V. Schaeffer, Tesfa Gebremedhin

Regional Research Institute Working Papers

When job prospects are uncertain, labor market size matters even when labor and jobs, respectively, are homogenous. The expected unemployment duration and its standard deviation may then differ systematically with labor market size.


An Economic Impact Study Of The Pennsylvania Section Of The Cove Point Expansion, Randall Jackson, Walter R. Schwarm Jan 2004

An Economic Impact Study Of The Pennsylvania Section Of The Cove Point Expansion, Randall Jackson, Walter R. Schwarm

Regional Research Institute Working Papers

Dominion Resources, Inc. engaged the Regional Research Institute to determine the total economic impacts associated with pipeline construction and/or modernization proposals traversing several Pennsylvania jurisdictions. The proposed project represents an investment of approximately $200 million. The scope of this analysis consists of estimating varying economic effects including job creation and resulting personal income, output and fiscal or tax revenue impacts directly associated with both the operational and construction phases of the proposed Pipeline expansion project. We calculate the spill-over or multiplicative impacts that will arise from the proposed Pipeline project. Additionally, some attempt is made in this analysis to capture …


The Role Of Small Business In Economic Growth And Poverty Alleviation In West Virginia: An Empirical Analysis, Gebremeskel H. Gebremariam, Tesfa Gebremedhin, Randall Jackson Jan 2004

The Role Of Small Business In Economic Growth And Poverty Alleviation In West Virginia: An Empirical Analysis, Gebremeskel H. Gebremariam, Tesfa Gebremedhin, Randall Jackson

Regional Research Institute Working Papers

The main objective of the study is to empirically evaluate the critical roles of small businesses in economic growth and poverty alleviation in West Virginia. In OLS and 2SLS regression analysis a positive relationship exists between small business and economic growth. A strong inverse relationship also exists between the incidence of poverty and small business and economic growth. Thus, the empirical result establishes the linkage between small business, economic growth and the incidence of poverty.


Location-Specific Amenities, Equilibrium, And Constraints On Location Choices, Brian Cushing Jan 2004

Location-Specific Amenities, Equilibrium, And Constraints On Location Choices, Brian Cushing

Regional Research Institute Working Papers

This research considers how preferences for location-specific attributes might constrain migration destination choices. In particular, if, at any given time, most people are consuming their desired location-specific attributes, then unwillingness to give up these attributes may influence the decision to migrate. For those who migrate, these desired attributes might significantly constrain the locations they would consider. This perspective differs substantially from the normal approach that assumes people move toward “good attributes” and away from “bad attributes.” The research provides an initial test of a “constrained destination choice” hypothesis by considering “locational attribute constraints” in the context of aggregate place-to-place migration …


Effects Of Zoning On Residential Option Value, Jonathan C. Young Jan 2004

Effects Of Zoning On Residential Option Value, Jonathan C. Young

Regional Research Institute Working Papers

Knowing more precisely how zoning affects housing value would allow policy-makers to improve long-term policy decisions. Previous studies have concluded that local zoning regulations affect residential option value. These studies, however, do not specify the magnitude of the effect for varying zoning types. This study quantifies zoning’s effect on residential option value for specific types of zoning using a hedonic regression model of housing prices. The study utilizes information on housing characteristics and sales prices for a cross-section of houses in Monongalia County, West Virginia. The research develops two models to differentiate between zoning effects on developed versus undeveloped properties. …


Dematerialization And Transmaterialization: What Have We Learned?, Walter C. Labys Jan 2004

Dematerialization And Transmaterialization: What Have We Learned?, Walter C. Labys

Regional Research Institute Working Papers

Long-term materials demand patterns are important to examine because of the possibility of material obsolescence as well as the long lead times required to create new mineral productive capacity. Since structural changes in materials demand are inevitably linked to the performance and adjustments of national economies, materials life cycles have often been examined in the context of intensity of use (IOU). Explanations of these structural changes have focused on dematerialization; this concept implies a structural change in an economy embodying a reduced demand for materials and, therefore, a decline in overall industrial growth. An alternative view is that of transmaterialization, …


Pull Factor Estimates For Retail Sales In West Virginia Counties, David W. Hughes Jan 2004

Pull Factor Estimates For Retail Sales In West Virginia Counties, David W. Hughes

Regional Research Institute Working Papers

Pull factors provide a measure of retail trade capture. Pull factors for total and twelve subcategories of retail sales for all West Virginia Counties are analyzed based on 1997 Census of Retail Trade data. A method for estimating missing data points and the use of Rand-McNally trade regions both facilitate estimation of the pull factors. Results indicate that hypothesizes concerning pull factors for central places in West Virginia generally hold. However, other elements influence pull factor estimates. The most important of these is the impact of state sales tax policy, which reduces pull factors for border cities through lessened retail …


Alternate Input-Output Matrix Updating Formulations, Randall Jackson, Alan T. Murray Jan 2003

Alternate Input-Output Matrix Updating Formulations, Randall Jackson, Alan T. Murray

Regional Research Institute Working Papers

There has been a recent resurgence of interest in biproportional adjustment methods for updating and interpreting change in matrix representations of regional structures, most commonly input-output accounts. Although the biproportional method, commonly called the RAS technique in the input-output literature, has been shown to have a number of theoretically appealing properties, various alternatives do exist. In this paper, we develop and assess empirically a number of alternatives, comparing performance and examining attributes of these adjustment methods. Two of these are sign-preserving updating methods for use when tables contain both positive and negative entries. One of these is shown to generate …


State Minimum Wage Laws And The Migration Of The Poor, Brian Cushing Jan 2003

State Minimum Wage Laws And The Migration Of The Poor, Brian Cushing

Regional Research Institute Working Papers

A substantial literature considers migration of the poor, mostly focusing on the relative importance of welfare programs versus labor market opportunities in the migration decisions of the poor. Likewise, a growing literature investigates the effect of changes in the minimum wage on U.S. poverty, focusing exclusively on the federal minimum wage. These two literatures have not intersected to examine how minimum wage laws influence migration decisions of the poor. Real federal minimum wages, minimum wage coverage, and state minimum wage laws all vary spatially. This research investigates the extent to which federal and state minimum wage laws affected migration choices …