2004 Working Papers

Effects of Zoning on Residential Option Value, Jonathan C. Young (Ronald E. McNair Scholar) / Research Paper #2004-12 / view paper (pp. 16, 43K)
Abstract: 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. The research finds that R1 and R1a zoning regulations - the most common types of residential zoning in Monongalia County - significantly impact housing value.

Location-Specific Amenities, Equilibrium, and Constraints on Location Choices, Brian Cushing / Research Paper #2004-11 [revised January 2008]
view paper (pp. 17, 45K)
Abstract: 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 flows for U.S. metropolitan areas during the 1995-2000 time period.

The Role of Small Business in Economic Growth and Poverty Alleviation in West Virginia: An Empirical Analysis
Gebremeskel H. Grebremariam, Tesfa G. Gebremedhin, and Randall W. Jackson / Research Paper #2004-10 / view paper (pp. 25, 78K)
Abstract: 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.

An Economic Impact Study of the Pennsylvania Section of the Cove Point Expansion, prepared for Dominion Resources, Inc.
Randall Jackson and Walter Schwarm / Research Paper #2004-9 / view paper (pp. 25, 190 K / Abstract: Not available.

Labor Market Size and Unemployment Duration: A Theoretical Note, Peter V. Schaeffer and Tesfa G. Gebremedhin
Research Paper #2004-8 [REVISED 3/07] / view paper (pp. 15, 396K)
Abstract: 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.

Developing Integrated Object-Oriented Conception of Geomarketing as a Tool for Promotion of Regional Sustainable Development: The Case Study of Ukraine, Volodymyr M. Anderson / Research Paper #2004-7 / view paper (pp. 30, 357K)
Abstract: 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) as a traditional marketing tool providing procedures of 'geosegmentation' and 'geopositioning' in market analysis; 2) as a marketing of places (placemarketing); 3) as a marketing of geographic knowledge and technologies helping to promote sustainable regional development. Such a complex approach foresees systematical empirical study of innovations and changes in these domains with the purpose to develop a general theory of geomarketing as a tool for promotion of sustainable development at local and regional levels.

What's Wrong with Economic Geography? Other Thoughts on the Rift, Gordon F. Mulligan
Research Paper #2004-6 / view paper (pp. 7, 25K). Forthcoming in the Canadian Journal of Regional Science. Abstract not available.

Method for Constructing Commodity by Industry Flow Matrices, Randall W. Jackson, Walter R. Schwarm, Yasuhide Okuyama, and Samia Islam
Research Paper #2004-5 / view paper (pp. 14, 78K)
Abstract: 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 generated efficiently and at much lower cost as new data are released. The resulting US interregional framework describes flows within and among the 50 states and the District of Colombia, and will provide a valuable database for a broad range of analysis on regions, interregional relationships and policy research.

Non-Linear Input-Output Models: Practicability and Potential, Guy R. West and Randall W. Jackson / Research Paper #2004-4 / view paper
(pp. 17, 112K)
Abstract: The conventional input-output model has been widely criticized, both justly and unjustly, for its limiting assumptions. One of these assumptions is homogeneity of degree one. This paper explores some approaches to minimize 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 be utilized to estimate the relative changes in local to imported inputs.
  There are several implications arising from the use of this model, compared to the conventional input-output model. Firstly, while the output multipliers and impacts may not be significantly different between the two models, we would expect the income and employment impacts to be smaller in the marginal coefficient model. This is because many industries, especially those which are more capital intensive and can implement further productivity gains, can increase output, particularly in the short run, without corresponding proportional increases in employment and hence income payments. However, when price effects are incorporated into the model, the direction of change becomes less clear. Secondly, unlike the conventional input-output model in which the multiplier value is the same for all multiples of the initial shock, the multiplier values from the marginal coefficient model vary with the size of the initial impact. Thus larger changes in final demand will tend to be associated with smaller multipliers than small changes in final demand. Therefore, the differential impacts of the marginal coefficient model are not additive, unlike the conventional (linear) Leontief model and CGE model. While not attempting to be a substitute for a CGE model, the methods described in this paper could be used where construction of CGE models are impracticable due to cost and data considerations.

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