Methods of Interregional and Regional Analysis

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ISBN: 9781859724101 | 1859724108
Cover: Nonspecific Binding
Copyright: 10/28/1998

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This landmark new textbook marks the launch of the Regional Science Studies Series which has been endorsed by the Regional Science Association International. This new textbook introduces students to the principles of regional science and focuses on the key methods used in regional analysis, including regional and interregional input-output analysis, econometrics (regional and spatial), programming and industrial and urban complex analysis, gravity and spatial interaction models, SAM and social accounting (welfare) analysis and applied general interregional equilibrium models. The coherent development of the materials contained in the set of chapters provides students with a comprehensive background and understanding of how to investigate key regional problems. For the research scholar, this publication constitutes an up-to-date source book of the basic elements of each major regional science technique. More significant, it points to new directions for future research and ways interregional and regional analytic approaches can be fused to realise much more probing attacks on regional and spatial problems - a contribution far beyond what is available in the literature.

Figures and tables

xii

(7)

About the authors

xix

(1)

Acknowledgments

(1)

Preface

xxi

1. The setting and introduction

(6)

2. Location analysis for industry and service trades: comparative cost and other approaches

(34)

2.0 Introduction

(1)

2.1 Industry location principles and the comparative cost approach

(13)

2.1.1 Locational analysis for the iron and steel industry

(4)

2.1.2 Analysis of the aluminum industry, and energy and other location factors

(7)

2.2 Service trades location principles

(3)

2.3 Spatial and location measures

(7)

2.3.1 The location quotient

(2)

2.3.2 The coefficient of localization

(1)

2.3.3 The localization curve

(4)

2.4 Geographic information systems(GIS)

(4)

2.5 Concluding remarks

(1)

Endnotes

(1)

References

(4)

3. Regional and interregional input-output analysis

(94)

3.0 Introduction

(2)

3.1 A single region

(27)

3.1.1 The statistical framework: input-output accounts

(6)

3.1.2 Technical coefficients and the input-output model

(3)

3.1.3 Input-output analysis

(18)

3.2 Two or more regions: the interregional input-output (IRIO) system

(11)

3.2.1 The statistical framework: interregional input-output accounts

(4)

3.2.2 Technical and trade coefficients in the IRIO model

(2)

3.2.3 Input-output analysis with the IRIO model

(5)

3.3 Two or more regions: the multiregional input-output (MRIO) system

(5)

3.3.1 The statistical framework: multiregional input-output accounts

(4)

3.3.2 Input-output analysis with the MRIO model

(1)

3.4 Constructing models from less than perfect data sets

(9)

3.4.1 Survey-based tables

(1)

3.4.2 Nonsurvey-based tables

(6)

3.4.3 Hybrid tables

(1)

3.4.4 Interregional connections

(1)

3.4.5 Empirical implementation

(1)

3.5 Fusion of comparative cost and input-output: editorial remarks

(3)

Appendix 3.1 The commodity-industry approach in input-output models

(4)

Appendix 3.2 Additional linkage measures from input-output data

102

(2)

Appendix 3.3 Data for the two-region IRIO numerical example

104

(1)

Appendix 3.4 The RAS approach to updating or regionalization of input-output tables

104

(5)

Endnotes

109

(11)

References

120

(5)

Mathematical appendix. Elements of matrix algebra

125

(10)

4. Regional and spatial econometric analysis

135

(76)

4.0 Introduction

135

(3)

4.1 Econometric models and their uses

138

(6)

4.1.1 The basic structure

138

(1)

4.1.2 Three typical applications

139

(5)

4.2 Some underlying statistical theory

144

(13)

4.2.1 Desirable properties of estimators

144

(4)

4.2.2 Ordinary least squares (OLS) estimators

148

(3)

4.2.3 Assumptions of OLS estimators

151

(3)

4.2.4 Other estimators

154

(3)

4.3 Some problems of estimation

157

(26)

4.3.1 Specification errors

157

(10)

4.3.2 The expected value of the error term is not equal to zero

167

(2)

4.3.3 The variance of the error term is not constant

169

(4)

4.3.4 Correlated error terms

173

(7)

4.3.5 Stochastic explanatory variables, multicollinearity, and measurement errors

180

(3)

4.4 Other relevant econometric models

183

(13)

4.4.1 The use of dummy variables

183

(2)

4.4.2 Discrete choice models

185

(2)

4.4.3 Pooled time-series and cross-section models

187

(4)

4.4.4 Simultaneous equations models

191

(5)

4.5 Spatial econometrics

196

(3)

4.5.1 Spatial dependence

197

(1)

4.5.2 Spatial heterogeneity

198

(1)

4.6 The `art' of econometric model building

199

(2)

4.7 Fusion of econometrics and input-output: some editorial remarks

201

(2)

Endnotes

203

(5)

References

208

(3)

5. Programming and industrial and urban complex analysis

211

(32)

5.0 Introduction

211

(2)

5.1 A simple linear programming problem: a graphic solution

213

(7)

5.2 Basic aspects of nonlinear programming

220

(5)

5.2.1 Introduction of multiple types of constraints

222

(3)

5.3 Industrial complex analysis as interregional programming

225

(10)

5.4 Urban and other complexes

235

(3)

5.5 Concluding remarks

238

(1)

Endnotes

239

(1)

References

240

(3)

6. Gravity and spatial interaction models

243

(38)

6.0 Introduction

243

(1)

6.1 A simple probability point of view

244

(6)

6.2 Definition and measurement of mass

250

(3)

6.3 Definitions and measures of distance

253

(1)

6.4 Functional forms for spatial separation

253

(4)

6.5 Constrained gravity (spatial interaction) models

257

(6)

6.6 Calibration, tests and applications of spatial interaction models

263

(9)

6.6.1 The use of OLS (ordinary least squares) to test the effect of distance, cooperation and hostility upon trade of nations

264

(5)

6.6.2 The use of maximum likelihood in a policy oriented application with particular attention to characteristics of origins, destinations and types of distance (separation) measures

269

(3)

6.7 Conclusion

272

(1)

Endnotes

273

(4)

References

277

(4)

7. Social accounting matrices and social accounting analysis

281

(52)

7.0 Introduction

281

(2)

7.1 The overall conceptual framework

283

(10)

7.2 Classification and disaggregation of accounts

293

(5)

7.2.1 Production activities cum commodities

294

(1)

7.2.2 Institutions

294

(2)

7.2.3 Factors of production

296

(2)

7.3 Data requirements in the construction of a SAM

298

(2)

7.4 SAM multiplier analysis and extensions

300

(17)

7.4.1 Unconstrained multipliers

300

(6)

7.4.2 Constrained multipliers

306

(2)

7.4.3 Structural path analysis and transmission of economic influence within the SAM framework

308

(8)

7.4.4 SAM as the foundation of computable general equilibrium models

316

(1)

7.5 Studies and applications based on the SAM

317

(9)

7.5.1 General overview

317

(1)

7.5.2 National applications

318

(5)

7.5.3 A regional-interregional application: the two-region Indonesian SAM for 1980

323

(2)

7.5.4 A village application: impact of rural industrialization on village life and economy: a comparison of two Indian village SAMs

325

(1)

Endnotes

326

(2)

References

328

(5)

8. Applied general interregional equilibrium

333

(68)

8.0 Introduction

333

(3)

8.1 A highly simplified model introducing distance and transport inputs as basic variables

336

(7)

8.1.1 The consumption subsystem

337

(1)

8.1.2 The production subsystem

337

(1)

8.1.3 The transport subsystem

338

(1)

8.1.4 The market subsystem

339

(4)

8.2 Transport inputs, location and trade in a two-country world

343

(8)

8.2.1 The consumption subsystem

345

(1)

8.2.2 The production system

345

(1)

8.2.3 The transport subsystem

346

(1)

8.2.4 The market subsystem

346

(3)

8.2.5 The location problem in an applied general interregional equilibrium framework

349

(2)

8.2.6 Some concluding remarks

351

(1)

8.3 The scaffolding of a core social accounting matrix for an applied general interregional equilibrium (AGIE) model

351

(22)

8.3.1 Trade in a two country/three region world: the scaffolding of an interregional (international) input-output core

351

(8)

8.3.2 Extensions to obtain the scaffolding of a core social accounting frame: a top-down approach

359

(7)

8.3.3 Extensions and generalizations to a multi-region, multi-country world

366

(1)

8.3.4 Extensions with a bottoms-up approach to AGIE models

367

(2)

8.3.5 The exploration of a Financial SAM and its fusion with a Real SAM

369

(4)

8.4 Problems and questionable character of the basic assumptions of standard applied general equilibrium models

373

(10)

8.4.1 Problems in representing the consumption subsystem

373

(3)

8.4.2 Questionable character of the production subsystem

376

(2)

8.4.3 Problems regarding scale economies in the transport and production subsystems, externalities, and market imperfections

378

(1)

8.4.4 Questionable character of intertemporal analysis

379

(1)

8.4.5 Problems of capturing behavior of governments, the Rest of the World and feedback sequences

380

(1)

8.4.6 Non-economic factors and other structural shortcomings

381

(2)

8.5 Some seminal contributions by regional scientists to the development of an applied general interregional (AGIE) model for a pure space economy

383

(3)

8.6 Concluding remarks

386

(1)

Appendix 8.1 The basic functions, exogenous magnitudes, variables and equations of the two nation/three region model

387

(3)

Endnotes

390

(7)

References

397

(4)

9. Interregional and spatial microsimulation

401

(18)

9.0 Introduction

401

(1)

9.1 Basic features of microsimulation

402

(3)

9.2 Likely extensions, costs, and other limiting factors in microsimulation

405

(2)

9.3 Applications

407

(8)

9.3.1 Wealth in the United States: family stock ownership and accumulation, 1960-1995

407

(3)

9.3.2 The potential of microsimulation for urban models

410

(5)

9.4 Concluding remarks

415

(1)

Endnotes

415

(2)

References

417

(2)

10. New channels of synthesis: the fusion of regional science methods

419

(46)

10.0 Introduction

419

(1)

10.1 Location analysis for industry and service trades and its fusion with input-output, econometrics and programming

420

(5)

10.2 Channel II. Social accounting analysis and its fusion with applied general interregional equilibrium analysis and other methods

425

(8)

10.3 Channel III. Methods for analyzing urban and metropolitan processes

433

(8)

10.3.1 Fusion centering around gravity and gravity-type models

434

(4)

10.3.2 Fusion centering around urban complex analysis

438

(3)

10.4 Channel IV. On comprehensive syntheses and conflict management

441

(16)

10.5 Conclusion

457

(1)

Appendix: Tables of pairwise comparison and relative weights

458

(2)

Endnotes

460

(2)

References

462

(3)

Index

465

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