The fundamentals of land prices and urban growth

In a very simple model in which capital is durable and landowners have perfect foresight, the price of urban land has four additive components: the value of agricultural land rent, the cost of conversion, the value of accessibility, and the value of expected future rent increases, a growth premium. In rapidly growing cities, the growth premium may easily account for half of the average price of land and may create a large gap between the price of land at the boundary (minus conversion cost) and the value of agricultural land rent.     

FORECASTING LIVESTOCK SLAUGHTER: AN EMPIRICAL ASSESSMENT OF MLC FORECASTS

Allocating resources to the provision of public forecasts may be justified as a means of reducing fluctuations arising from divergent expectations. In this paper we examine certain forecasts provided by the Meat and Livestock Commission. Our results indicate that these forecasts pass a number of tests of model adequacy. In particular they appear to be unbiased and efficient.     

EMPTOR AUSTRALIS: THE AUSTRALIAN CONSUMER IN EARLY TWENTIETH CENTURY ADVERTISING LITERATURE

Well aware that it is the consumer who makes or breaks an advertisement, the advertising industry has long paid close attention to its audience. However, advertising historians have generally overlooked the industry's efforts to define the consumer and the impact this has had upon advertisements and the advertising industry itself. By examining the changing conceptualisation of the Australian consumer featured in the locally produced advertising literature during the early twentieth century, this study offers an insight into the inner workings of Australia's fledgling advertising industry. It demonstrates the ways in which advertising interacted with the world around it.     

Market Size and Economic Integration when Labor Markets are Unionized

The paper explores the effects of economic integration on trade, wages, and welfare when market sizes differ. A duopoly model with two‐way intraindustry trade in similar products and with unionized labor markets is employed. It is confirmed that, for a wide range of different relative market sizes, integration leads to higher wages, employment, and welfare. However, where market sizes differ widely, the reduction of trade barriers leads to a reduction of wages, employment, and—in some circumstances—welfare in the country with the large market.     

Cost of capital and market power: The effect of size dispersion & entry barriers on market equilibrium

A market power explanation for the observed empirical fact that large firms in a given industry pay less for their capital than small is developed. Larger firms in an industry are shown to pay less for their capital than small because they have more control over the market and the riskiness of their divided stream is correspondingly smaller. More firms in an industry with a given size dispersion raises the cost of capital to the incumbents, but proportionately more to smaller firms. However, the most significant result is that a greater dispersion of sizes will reduce the riskiness of the dividend stream of the larger firm and increase the riskiness of the smaller firm, causing an increase in the dispersion of capital costs. Hence product market power enhances capital cost efficiencies.     

Pitfalls in counterfactual analyses of policy rules

This analysis examines the validity of utilizing a subset of reduced form equations, such as from a VAR model, for the construction of counterfactual policy analyses. It is shown that the omission of one of the estimated reduced form (VAR) equations and the substitution of a counterfactual policy rule to complete the model severely limits the admissible structure of the economic model that could have generated the historical data.