2003 Working Papers continued
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Distance Decay in Employment and Spatial Spillovers of Highways in Appalachia Samia Islam / Research Paper #2003-4 [revised] view paper (pp. 25, 589K) Abstract: The impact of transportation infrastructure on regional employment can be reflected through changes in the accessibility of the region affected. Lack of connectivity implies lack of choice, innovation and intellectual opportunity. The impact of infrastructure transcends the boundaries of regions. A certain region may benefit from a public project (e.g., an airport or an interstate), even though the facilities are located in another region. The extent of these spillovers can be determined by using a measure of accessibility/proximity to highway infrastructure in a model of employment. State Minimum Wage Laws and the Migration of the Poor Brian Cushing / Research Paper #2003-3 / view paper (pp. 26, 216K) Abstract: 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 of low-income households in the United States during the 1985-90 period. The study finds that the level of state minimum wages and the extent of federal minimum wage coverage both alter migration choices of the poor. The Importance of the Regional/Local Dimension of Sustainable Development: An Illustrative Computable General Equilibrium Analysis of the Jersey Economy D. Lermonth, P. G. McGregor, J. K. Swales, K. R. Turner, and Y. P. Yin / Research Paper #2003-2 / view paper (pp. 36, 452K) Abstract: This paper uses a multi-period economic-environmental Computable General Equilibrium (CGE) modelling framework to analyze local sustainability policy issues. Our focus is the small, open, labour-constrained regional economy of Jersey. We employ CGE model simulations to track the impact of changes in population on a number of energy-consumption and pollution indicators under alternative hypotheses regarding economic conditions over the time period under consideration. In the case of Jersey, we find that household consumption is the key factor governing the environmental impact of economic disturbances. Therefore the analysis includes an examination of the sensitivity of the simulation results to different assumptions affecting the wage elasticity of labour demand and therefore the responsiveness of household income to shifts in labour supply. Modeling Trade and Environmental Linkages in China Walter C. Labys / Research Paper #2003-1 / view paper (pp. 40, 255K) Abstract: Interactions between trade and the environment have been studied extensively as a reaction to the pressure that the accelerated pace of globalization has placed on environment and trade. Distinguishing itself from previous work, this study focuses on a modeling analysis of the interactions between trade and the environment in China. A nonlinear simultaneous equation trade and environment model (TEM) is presented that expands Dean's basic model by endogenizing the trade and foreign direct investment variables. This model can be used not only to analyze the trade impacts of environmental policies and the environmental impact of trade, but also to identify the sources of those influences. In addition, the nonlinear specification of the relationship between emissions and economic scales allows for an explicit test of the environmental Kuznets curve. Using the White heteroscedasticity consistent covariance matrix estimator and employing a Chinese regional panel data set, the empirical results suggest that there may indeed have existed a trade-off between economic growth and environmental protection in China's development. That is, increased trade and rapid economic growth may have led to greater pollution emissions on the one hand, while environmental policies may have led to reduced economic growth and reduced trade on the other. Policy alternatives to mitigate these negative impacts also are explored.