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A SUPPLY‐SIDE INTERREGIONAL MODEL OF THE U.S. MANUFACTURING INDUSTRY: 1960‐78 1
Author(s) -
Nobukuni Makoto,
Adams F. Gerard
Publication year - 1990
Publication title -
papers in regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.937
H-Index - 64
eISSN - 1435-5957
pISSN - 1056-8190
DOI - 10.1111/j.1435-5597.1990.tb01194.x
Subject(s) - supply side , business , economic geography , manufacturing , industrial organization , economics , commerce , marketing
This paper presents a multiregional simultaneous model of the U.S. manufacturing industry based on the supply‐side paradigm, focusing on the behavior of the primary inputs, capital stock and labor force, across the nine Census Regions. The estimated structure shows that the regional investment sensitively responds to the marginal productivity of capital in the respective region relative to the national average, while the net interregional migration basically follows the relative regional wages. As an application, the model is used for evaluating the economic value of migration and analyzing the relationship between the overall national growth and interregional equalisation of income.