Can Nature Drive Economic Growth?

The conditions that lead to successful economic development are diverse and place sensitive. Recent research supports the notion that there is a correlation between the presence of natural amenities and rural economic development. This case explores the situation of a rural county that is faced with constrained development options as a result of a significant federal footprint on the county's land area. The actions of the federal agencies managing the resources impact the economic vitality of the region. Two issues currently under review challenge the county to think critically about its potential for using nature as an economic development tool.     

Markets,torts, and social inefficiency

We provide a model wherein oligopolists produce differentiated products that also have a safety attribute. Consumption of these products may lead to harm (to consumers and/or third parties), lawsuits, and compensation, either via settlement or trial. Firm‐level costs reflect both safety investment and production activities, as well as liability‐related costs. Compensation is incomplete, both because of inefficiencies in the bargaining process and (possibly) because of statutorily established limits on awards. We compare the market equilibrium safety effort and output levels to what a planner who is able to set safety standards, but takes the market equilibrium output as given, would choose.     

Are migrants more skilled than non‐migrants? Repeat,return, and same‐employer migrants

Abstract.  I examine the determinants of inter‐state migration of adults within western Germany, using the German Socio‐Economic Panel from 1984–2000. Migrants who do not change employers represent one‐fifth of all migrants and have higher education and pre‐move wages than non‐migrants. Skilled workers thus have a low‐cost migration avenue that has not been considered in the previous literature. Other migrants are heterogeneous and not unambiguously more skilled than non‐migrants. I confirm that long‐distance migrants are more skilled than short‐distance migrants, as predicted by theory, and I show that return migrants are a mix of successes and failures. Most repeat migration is return migration. JEL classification: J6     

Family income and child outcomes in Canada

Abstract.  A positive relationship between income and child outcomes has been observed in data from numerous countries. A key question concerns the extent to which this association represents a causal relationship as opposed to unobserved heterogeneity. We use data from the National Longitudinal Survey of Children and Youth to implement a series of empirical strategies for estimating the existence and size of the effect of income on three measures of cognition. Our results indicate that the effect of income on these outcomes may well be positive, but that it is likely to be smaller than conventional estimates. JEL Classification: I10     

Rescaling and reforming the state under NAFTA: implications for subnational authority

The new free trade agreements are rescaling governance in ways that have critical implications for subnational governments. The nation state is not simply being hollowed out; rather, a new governance nexus is forming — of nation states, multinational corporations and international agreements — which explicitly excludes subnational and local government voice. This article describes the new governance features of the North American Free Trade Agreement (NAFTA) and illustrates how they work out at the national, subnational and local scales using cases from the United States and Mexico. NAFTA provides the template for other free trade agreements including the Free Trade Area of the Americas (FTAA) and a growing number of bilateral agreements. We show how NAFTA's governance structure is undermining subnational and local government authority in legislative and judicial arenas. Designed to advance privatization of public services, these agreements undermine the very ability of local governments to use markets for public goods by defining traditional state and local governance mechanisms as ‘non‐tariff barriers to trade’. Contradictions between private profit and public interest appear at the subnational level but their resolution is engaged at the global level between private investors and the nation state. Recognition of this rescaling requires attention to the reforming state and its implications for subnational authority and democratic representation and voice. Les nouveaux accords de libre‐échange ré‐échelonne la gouvernance selon des modalités aux implications critiques pour les gouvernements infra‐nationaux. L'État‐nation n'est pas seulement en train d'êvidé de son contenu, mais une nouvelle sphère de gouvernance se forme —à partir d'États‐nations, de groupes multinationaux et d'ententes internationales —, excluant explicitement toute voix de gouvernements locaux ou infra‐nationaux. Cet article décrit les nouvelles caractéristiques de la gouvernance selon l'Accord de Libre‐Échange Nord‐Américain (ALENA) et illustre, avec les cas des Etats‐Unis et du Mexique, comment elles opèrent aux échelons national, infra‐national et local. L'ALENA fournit un modèle pour d'autres accords de libre‐échange, comme la Zone de Libre‐Échange des Amériques (ZLEA) et un nombre croissant de conventions bilatérales. L'article montre comment la structure de gouvernance de l'ALENA mine l'autorité des gouvernements locaux et infra‐nationaux dans les domaines législatif et judiciaire. Destinés à favoriser la privatisation des services publics, ces accords sapent l'aptitude même des gouvernements locaux à recourir aux marchés pour les marchandises publiques, puisqu'ils définissent les mécanismes de gouvernance locale et étatique traditionnels comme des ‘barrières commerciales non‐douanières’. Les contradictions entre profit privé et intérêt public apparaissent au niveau infra‐national, mais leur résolution est entreprise au niveau mondial entre investisseurs privés et État‐nation. La reconnaissance de ce décalage d'échelon appelle à s'intéresser à l'État réformateur et aux implications pour toute autorité infra‐nationale et représentation ou voix démocratique.     

Enacting risk reduction: an examination of the volitional stages of smoking cessation within Scotland

This study examines an extended version of the Theory of Planned Behaviour (TPB) in the context of nicotine replacement therapy (NRT) as an aid to smoking cessation. An attempt is made to address the intention–behaviour gap identified in the literature by specifically focusing on the role and interrelationships of volitional stages, namely intention, planning and anticipated effort. A convenience sample of 207 female smokers, aged 16–36, provided information about their views, attitudes and volitional behaviour regarding the use of NRT as an aid to smoking cessation. Results of this study show the TPB to be pertinent, accounting for 41% of the variance in intention to use NRT as an aid to smoking cessation. Furthermore, behavioural intention is found to mediate the relationship between the TPB antecedents (attitude, subjective norm and perceived behavioural control) and each of the two volitional elements, planning and anticipated effort. The implications of these findings are discussed.     

The Relation Between Investor Uncertainty and Market Reactions to Earnings Announcements: Evidence from the Property‐Casualty Insurance Industry in the USA

Abstract:   This paper investigates the relationship between investor uncertainty, gauged by properties of analysts' forecasts, and the stock market response to earnings. We find that uncertainty is best characterized by a comprehensive measure recently proposed by Barron, Kim, Lim and Stevens (1998) , BKLS. The BKLS measure is related to uncertainty‐inducing events, as well as factors that affect the difficulty faced by analysts in forecasting earnings. We conclude that, first, pre‐disclosure uncertainty is a significant determinant of the price reaction to the earnings release, and second, BKLS is a more comprehensive measure of uncertainty than simple dispersion.     

Global and world cities: a view from off the map

Attention to global and world cities has directed the field of urban studies to the significance of international and transnational processes in shaping city economies. This article evaluates these approaches, from a position off their maps. I argue that the circulation of these approaches in academic and policy realms adversely impacts on cities which do not fall into these categories by setting up the idea of the global city as a ‘regulating fiction’, a standard towards which they aspire. It establishes a small sector of the global economy as most desirable in planning the future of cities. By contrast, mega–cities function as the dramatic ‘other’ of world and global cities, and highlight the developmentalist discourse through which most cities in poor countries are assessed as fundamentally lacking in qualities of city–ness. I argue that the long–standing categories of western/third–world cities have been translated into the apparently transnational accounts of global and world cities. Western cities continue to be the primary site of production of apparently unlocated urban theory; so–called third–world cities (and other cities off the map of the world cities cartography) are interpreted through a developmentalist lens and, where they are referred to at all, are framed in terms of ‘difference’ or irrelevance. This article draws attention to the emergence of an alternative set of theoretical approaches, which are more inclusive in their geographical reach and which are concerned with the diverse dynamics of ordinary cities. These approaches have not yet realized that they have the potential to broaden the base for theorizing about cities and, with this in mind, the article explores the potential for a more cosmopolitan urban theory. The policy stakes in this are high, and the article notes that there are important political reasons to promote the analysis of ordinary cities in the face of the persistence of ambitions in many cities to become ‘world cities‘. L’attention accordée aux villes planétaires et mondiales a orienté le champ des études urbaines vers l’importance des processus internationaux et transnationaux dans la configuration économique des villes. Partant d’un point situé hors de leur cartographie, l’article évalue ces approches. La circulation de celles–ci dans les sphères politiques et intellectuelles a une incidence néfaste sur les villes qui n’appartiennent pas à ces catégories, car elle instaure l’idée d’une ville planétaire en tant que ‘fiction régulatrice’, norme à laquelle aspirent les villes. Un secteur restreint de l’économie mondiale est ainsi établi comme le plus recherché dans la planification urbaine. Par contraste, les megacities fonctionnent comme l’impressionnant ‘autre’ des villes mondiales et planétaires, valorisant le discours développementaliste selon lequel l’évaluation des villes des pays pauvres indique le plus souvent des lacunes fondamentales dans les qualités propres à une ville. Les anciennes catégories de villes (Occident/tiers–monde) ont été converties en justifications apparemment transnationales des villes planétaires et mondiales. Les villes occidentales restent le site de production principal d’une théorie urbaine manifestement non–localisée; les villes dites du tiers monde (et autres villes ignorées de la cartographie des villes mondiales) sont interprétées à travers une optique développementaliste et, si on en parle, sont dépeintes en termes de ‘différence‘ ou d’inadéquation. Cet article souligne l’émergence d’un autre ensemble d’approches théoriques, plus inclusives dans leur géographie et soucieuses des diverses dynamiques des villes ordinaires. Sachant que ces démarches ne sont pas encore conscientes de pouvoir étendre la base théorique sur les villes, l’article explore la possibilité d’une théorie urbaine plus cosmopolite. Les enjeux stratégiques sont sérieux et il existe des raisons politiques importantes d’encourager l’analyse des villes ordinaires face aux ambitions persistantes dans de nombreuses villes de devenir les ‘villes mondiales’.     

Spillover effects of human service facilities in a racially segmented housing market

Previous studies of human service facility spillovers on residential property values have been inconclusive, and have failed to take into account the effects of racial segmentation of housing markets. Likewise, studies of racial discrimination in urban housing markets and price differentials between white and nonwhite areas of the city have failed to consider the impacts of service facilities on prices. This study develops an hedonic price model of housing services in a racially segmented housing market, which considers a variety of human service facilities and their spillover effects. Model results for Oakland, California in 1976 indicate that facilities significantly affect housing prices both positively and negatively, and that these effects vary by racial submarket. Implications of these findings for the interpretation of past discrimination studies, facility impact studies, and social policy are considered.