Land Economics; Agricultural Economics; Economic Geography; Housing

American Economic Association

Land Economics; Agricultural Economics; Economic Geography; HousingSource: Journal of Economic Abstracts, Vol. 5, No. 4 (Dec., 1967), pp. 896-906Published by: American Economic AssociationStable URL: http://www.jstor.org/stable/2719981 .

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Land Economics; Agricultural Economics; Economic Geography; Housing

ANDERSON, R. L. Windfall Gains From Transfer of Water Allotments Within the Colorado-Big Thompson Project.

Some question has been raised about the propriety of individuals receiving windfall gains from the sale and transfer of Colorado-Big Thompson Project water allotments within the Northern Colorado Water Conservancy District. As the nonfarm demand for water has risen, nonirrigation users of water have been buying allotments from farmers. The transfer price has risen to well over $100 per unit for allotments which were originally granted cost free.

Professor J. L. Sax, writing in the Michigan Law Review, asserts that most of this unearned increment should be captured by the Conservancy District. However, the allotment holders have thbe right to receive water into perpetuity at a fixed rate and could not be ex- pected to release allotments without adequate compensation. To in- sist upon recapture of most of the sale price when an allotment is sold would weaken the ownership rights of allotment holders and would tend to stifle the transfer of water resources to higher value uses. Movement toward greater economic efficiency in use of water resources would be arrested and the project would not reach its po- tential in contributing to the economic development of the area.

Projects developed with public money should be used as economi- cally efficiently as possible so that the maximum benefits will flow to the economy generally. Attempts to recapture small diffuse windfall gains could prevent realization of much larger benefits. Land Econ., Aug. 1967, 43(3), English. NRED, USDA, Economics Department, Colorado State University, Ft. Collins, Colorado

BRAZER, M. C. Economic and Social Disparities Between Central Cities and Their Suburbs.

To test the validity of what may be called a stereotype of central city-surburban economic and social differences, a multiple regression analysis was undertaken with reference to the following ques- tions. "Are the socio-economic characteristics of the residents of cen-

896



Subjects 897

tral cities and those of their surrounding suburbs so disparate as to describe two fundamentally distinct population groups?" "If significant disparities do, in fact, exist, under what conditions are they to be found?" "Are there distinctions between central city and suburban populations which vary according to the type of SMSA in which they reside?"

The association between central city-suburban differences in 41 socio-economic characteristics and six "structural" characteristics of metropolitan areas was examined, separately for the total population and for nonwhites, for all SMSAs with populations of 100,000 or more.

The stereotype of low economic and social status in central cities and high status in the suburbs was found to be valid only for the largest SMSAs and those located in the Northeast. In the majority group of small and medium-sized SMSAs, especially those of the South and West, there is in general a pronounced absence of significant disparities between central cities and suburbs. Moreover, in the latter group, in contradiction of the sterotype, the importance of nonwhites and sub-standard housing, both low-status characteristics, was far greater in the suburbs than in the central cities.

A high proportion of metropolitan population residing in the suburbs and a high proportion of nonwhites in the SMSA support north- eastern location and large SMSA size to accentuate central city-suburban disparities, while population concentration in the city and a small overall proportion of nonwhites reinforce the effects of small SMSA size and location outside the Northeast in minimizing disparities.

Demonstration of t-he very limited applicability of the widely accepted metropolitan stereotype, coupled with recognition of the national diversity in metropolitan population patterns, reveals the ne- cessity for tailoring metropolitan policies and problem-solving techniques, at the national as well as the state and local level, to specific kinds of metropolitan areas. Land Econ., Aug. 1967, 43(3), English. Ann Arbor, Michigan

BROWN, K. C. The Distribution of Louisiana Outer Continental Shelf Lease Bids.

The hypothesis that per acre lease bonus bids for federally owned Louisiana Outer Continental Shelf petroleum lands are lognormally



898 Journal of Economic Abstracts

distributed is not rejected by the Kolmogorov Smimov Test. If this hypothesis is accepted, models depicting bid formation should have multiplicative error terms. Further, the variance of the lognormal distribution of bids among tracts within a sale appears constant. This implies that large bids do not tend to be proportionately more precise than smaller ones. Thus, the variance may be regarded as a measure of the general uncertainty connected with evaluating tracts at a given time in a given geological province. Land Econ., Aug. 1967, 43(3), English. Purdue University

GRANT, W. R. A Model for Estimating Costs of Government Export Programs for Rice.

Price support policies for rice in the United States are subject to many conflicting forces. The development of a workable price support program involves knowledge of complex economic and institu- tional factors, particularly those concemed with the interrelation- ships of supply and demand in both domestic and foreign markets. Currently more than half the rice produced in the United States is exported.

This report develops an analytical model of the supply and demand relationships for rice that permits (1) estimation of domestic and export quantity-price relationships for rice and (2) determina- tion of the effects of changes in Govemment programs for rice on the cost to the Federal Treasury. The method used for both these objectives is an economic model with two groups of variables and six equations, fitted by three methods-the limited-information single equation method, the two-stage least squares method, and the ordinary least squares method. The results indicated that the elasticity of demand with respect to price is low (a 1 per cent change in domestic price affects domestic consumption 0.27 per cent in the op- posite direction). The estimated elasticity of demand for exports with respect to export price is about 6 times the elasticity of domestic demand. The equations of the model, with data from 1934 through 1963 (excluding the periods 1941-45 and 1954-58) were useful and accurate in estimating quantities, prices, and subsidies of rice and in evaluating allotment-price variations within a given price support program, or between two or more types of programs. Agric. Econ. Research, July 1967, 19(3), pp. 73-80 (English). Texas A & M University, College Station, Texas



Subjects 899

MiLIUS, W. Estimating the Demand for Truck and Rail Transpor- tation: A Case Study of Califomia Lettuce.

The traditional use of the value of the commodity as an indicator of the elasticity of demand for transport has become increasingly less reliable since competition among modes and use of private car- riers are expanding. This report examines the possibility of estimating demand for truck and rail transport services at the commodity (specifically California lettuce) level by using data from a cross-sectional sample of destinations for shipments from one origin. Using actual freight rates from data collected by the U.S. Department of Agriculture, the report determines the variation in average rates among 30 population centers at a given point in time and the shippers' responses to differences in them. It was assumed that Califor- nia lettuce shippers have an effective choice between truck and rail transport and that their choice would be based on rates for each. Re- gional and size of market factors also were entered. Single equation regressions were applied since both price variables are assumed to be predetermined: rail rates are regulated and truck rates are in effect predetermined by the movement of all agricultural commodities from all origins to all destinations. The size of the market is also assumed to be predetermined. This is an assumption that the demand for lettuce movement is infinitely inelastic with respect to rates. The demand relationship was assumed to be linear in logar- ithms for all variables. It was found that the demand for transportation services of each mode, rail and truck, for California lettuce seems to be relatively elastic with respect to its own freight rates, and of unit elasticity with respect to the rates of the competing mode. The demand for truck services is relatively more elastic than that for rail services. The study suggests that the estimation of demand may be feasible from cross-sectional data. Agric. Econ. Re- search, Apr. 1967, 19(2), pp. 46-50 (English). USDA, Honolulu, Hawaii

PARIKH, A. Consumption of Nitrogenous Fertilizers: A Continuous Cross-Section Study and Co-Variance Analysis.

The object of this study is to measure the role of factors deter- mining the consumption of nitrogenous fertilizers in India during the period 1958-59 to 1962-63. A cross-section study using state-wide




distribution of introgenous fertilizers is attempted. The objective is to identify and measure the quantitative significance of the principal factors that were responsible for the increasing use of nitrogenous fertilizers from year to year in different states. The study throws some light on the response of Indian farmers to changing relative prices of fertilizers. Indian Econ. Jour., 1966, 14(2), pp. 258-74 (En- glish). Poona, India

PAUL, A. B. AND WESSON, W. T. Pricing Feedlot Services Through Cattle Futures.

The authors examine the idea that the difference between the value of a fed animal and the combined value of feeder animal and feed used to produce the fed animal is a price for feedlot services. With the recent rise of futures trading in fed cattle, a competitive market in feedlot services has come into being through establish- ment of price differences. This market has arisen alongside the extensive post-war market in custom feeding of cattle. The two are economic equivalents. This is shown by separating the futures con- tract into a transaction in a spot commodity (feed plus feeder animal) and another in a bundle of services, and then by comparing equivalent sets of transactions under futures trading and under custom feeding. The outcome in terms of quantity, quality and cost of supplying fed cattle (or feedlot services) would be identical assum- ing the same production function and perfect arbitrage. Quarterly data or 1965 and 1966 are presented to suggest the validity of the hypothesis that a positive relation exists between the competitive price for feedlot services (as revealed by price differences) and the quantity of cattle feeding services. Also prices and cost of producing feedlot services are compared to show their general consistency. Conclusions are drawn on the role of futures trading and custom feeding in financing the large capital investment in modem feedlot operations. The rise of cattle futures trading suggests the need to modify the usual belief that extensive cash forward dealings in a commodity must precede the rise of organized futures. The precon- dition can include dealings in an economic equivalent, that is, in services that enter into the production of the commodity. Agric. Econ. Research, Apr. 1967, 19(2), pp. 33-45 (English). USDA, Washington, DC



Subjects 901

PREscoTrr, J. R. Rental Formation in Federally Supported Public Housing. The argument that individuals prefer unattached income subsidies

to matching grants has been frequently applied to grant-in-aid programs (including Federally-supported public housing) without an examination of conditions imposed by the participating agency for project authorization. This often results in an inaccurate program description and a misplaced emphasis on largely irrelevant issues. For instance, the prospective tenant of a public dwelling unit must show that his income is within specified limits and that his current facilities are substandard. Public rentals at the minimum income limits are fixed percentages of private rentals; public tenants with incomes below these limits are charged rentals equal to twenty per cent of their money incomes. The qualified public tenant is faced with a choice between a "fixed offer" in the project at a lower rental or a variety of private market apartments at a higher per unit rental. The form of subsidy is irrelevant under these conditions.

Several implications of this pricing structure are analyzed. (1) As income limits are tied to private rentals, the stock of public units acts as a buffer against private rental fluctuations. A tight private market eases the income entry restriction to public units and vice versa. (2) The "fixed offer" in the housing project enhances the abili- ty of the Federal government to enforce minimum housing stan- dards which might never be attained by a system of voluntary income or matching subsidies. (3) Equal treatment of equals is not ensured among communities because the size of the subsidy is dependent on the level of private rentals. The large variation in private rentals suggests a similar variation in subsidies to public tenants. These (and other) issues related to the use of pricing for efficient project management warrent closer examination. The general analytical framework of consumer demand theory is insufficient for this purpose. Land Econ., Aug. 1967, 43(3), English. Iowa State University, Ames, Iowa

RIDKER, R. G. AND HENNING, J. A. The Determinants of Residential Property Values with Special Reference to Air Pollution.

This paper presents a statistical model of the determinants of residential property values for single family dwelling units and applies




it to obtain estimates of the effect that air pollution has on these values. The units of observation are census tracts in the St. Louis metropolitan area in 1960. Least squares regression methods are utilized with special attention being devoted to the problem of multicollinearity.

The variables utilized include measures of air pollution, characteristics specific to the property (e.g., median number of rooms), location characteristics, neighborhood characteristics (including school quality and crime rate), a dummy variable distinguishing Illi- nois from Missouri census tracts, percentage non-white and median family income. Multicollinearity problems are treated by deriving several alternative estimates of the coefficients of primary interest, each of which is based on a different assumption concerning the ex- tent to which the variables relating to them should be included in the regression equation.

Our best single estimate is that property values fall linearly by $245 per house for each 0.25 mg. rise in SO3 levels, the range of this pollution index extending from approximately 0.35 to 2.75. Other results are discussed, in particular evidence pertaining to other neighborhood effects and to housing discrimination. All results of primary interest are statistically significant using normal tests. Some implications for total property values and the cost of eliminating the pollution are included. Rev. Econ. & Stat., May 1967, 49(2), English. Brookings Institution and Syracuse University, USA

SCHENER, E. AND WILSON, J. The Use of Public Mass Transportation in the Major Metropolitan Areas of the United States.

This paper has discussed public transportation demand in the major metropolitan areas of the United States. We have seen that area characteristics such as population, residential and workplace density, and housing conditions are correlated with mass transit use. Surprisingly, on a cross section basis, personal income level and racial content of a city are not at all correlated with public transit use. In fact, non-white population does not seem to be correlated with any of the variables that current issues would lead us to suspect. This result, however, is not to be interpreted as disproving those studies that indicate significant relationships between income level or racial content and transit use in a given metropolitan area. It is an indication, however, that transit demand studies with different



Subjects 903

formats (i.e., cross section or specific area) will produce differing conclusions.

The most striking relationship of the study emerges between automobile ownership and mass transit use. We originally started with eleven independent variables and defined the relationship between each of those and mass transit ridership as well as their relationship to each other. In the end, it was shown that one of these eleven, automobile ownership, can be used to estimate current public transportation demand in large metropolitan areas with the equation T = 12.55 + 1.38 X8. An application of this estimating equation to cities not included in the original computations produces a remarkably accurate result. In fact, this simple equation is capable of explaining nearly 90 per cent of the public transit demand variation between the twenty-three metropolitan areas studied.

Finally, this study clearly indicates that bus transit is, by far, the major means of public transportation in all cities but New York and Boston, and that the private automobile is the primary commuting vehicle in all metropolitan areas except New York. Land Econ., Aug. 1967, 43(3), English. The University of Wisconsin-Milwaukee, Mil- waukee, Wisconsin

SIGAL, N. M. The Unchanging Area in Transition.

Although still much-used, the concept of the area in transition is unsuitable for describing blight in the centers of cities. Of four dete- riorated subsections of Manhattan which are examined, none had changed appreciably in value in decades. Speculation was not com- mon, nor were the buildings generally cheap compared to the value of the land. An alternate description is proposed, which attributes blight to the complexities of organizing improvement and redevel- opment. Land Econ., Aug. 1967, 43(3), English. Columbia University

ADAMS, D. W. AND SCHULMAN, S. Minifundia In Agrarian Reform: A Colombian Example.

Methods used for correcting the problems of small farm units (Minrfundia) in Europe have proven inadequate in Latin America. The term minifundia covers a number of distinct types of units whose problems and possibilities for solution are very different. A tenative typology for classifying minifundia is suggested and exam-



904 Journal of Economic Abst-acts

ples from Colombia are presented in this article to illustrate the typology.

Three general types of minifundia are identified. They are: (1) the independent minifundia which are largely self-contained subsis- tence units, (2) the commercial minifundia on which production decisions are closely tied to market conditions, and (3) the dependent minifundia where off-unit income is an important part of total family earnings. From a socio-economic point-of-view the dependent minifundia are probably the most provocative for study. In many areas of Latin America they are also numerically superior to the other two types.

A description of t-he dependent minifundia in one area of Colom- bia was used to illustrate the complexity of the problems faced in these small units. The limitations of some of the most often discussed remedial approaches for minifundia were evaluated. In this area there were three general subtypes of dependent minifundia: (1) the mixed-dependent where off-unit work plus in-home craft work was a main source of income, (2) the minifundia associated with urban areas: rural residents who work full time in town, or urban residents who owned small rural parcels; and (3) the minifundia associated with the large commercial farm units in the area: share-croppers and workers who spent a major part of their time working on the large landholdings.

Parcel consolidation may be useful to a handful of the small units in this area. Credit, cooperatives, supervision, etc., may also find several units which might be improved via these techniques. Some of the operators could productively utilize more land which might result from parcelization programs. Othbers might be assisted by improved off-farm employment opportunities. Still other families could not be substantially assisted by any feasible development program.

In conclusion, minifundia are seldom a homogenous category which can be simply treated with one or two development tools. Subclassification is usually necessary before evaluating and applying remedial alternatives. Land Econ., Aug. 1967, 43(3), English. The Ohio State University and Colorado State University

BANDINI, M. L'agricoltura mediterranea. (With English summary.) Riv. Intemaz. di Sci. Econ. e Com., July 1967, pp. 687-701.

BARNETT, H. J. The myth of our vanishing resources. Trans-action, June 1967, pp. 6-10.

BEAN, L. H. Crops, weather, and the agricultural revolution. Am. Statistician, June 1967, pp. 10-14.



Subjects 905

BinA, S. S. A new measure of agricultural efficiency in Uttar Pradesh, India. Econ. Geog., July 1967, pp. 244-60.

BROWN, R. W. Geographic factors in the construction and operation of Libyan petroleum ports. Libyan Econ. & Bus. Rev., autumn 1966, pp. 27-56.

BULDOVINOS, G. El desarrollo agrlcola y su proyeccion. Econ. Politica, 1966, 3(3), pp. 291-300.

CIGNO, A. AND DONATI, F. Un modello multiperiodale di programmazione lineare, per l'ottima dimensione ed utilizzazione degli impianti di conserva- zione dei foraggi. Giom. d. Econ., Jan.-Feb. 1967, pp. 73-87.

COLLINS, F. M. AND DIBB, P. Wheat production in the Soviet Union and the Five Year Plan. Quart. Rev. Agric. Econ., April 1967, pp. 95-104.

CUPO, C. AND AMIRANTE, M. Evoluzione della produzione agricola in Lucania dal 1923-28 al 1964-65 per zone omogenee. Rassegna Econ., May-June 1967, pp. 625-53.

DAVIS, R. K. AND BROOKS, D. B. Some economic aspects of urban sedimentation. Land Econ., Aug. 1967.

DE KOSTER FUtENTES, P. Desarrollo econ6mico basado en el progreso de la agri- cultura. Econ. Politica, 1966, 3(3), pp. 301-13.

DENT, W. Sensitivity analysis of wool transportation. Australian Econ. Papers, Dec. 1966, pp. 211-23.

EGHTEDARI, A. M. Management of rural community development. Tahqiqat e Eqtesadi, Jan. 1967, pp. 52-70.

FISmHR, J. L. The natural environment. Annals Am. Acad. Pol. Soc. Sci., May 1967, pp. 127-40.

FLEMING, M. C. Conventional housebuilding and the scale of operations: a study of prices. Bull. Oxford Univ. Inst. Econ. and Stat., May 1967, pp. 109-37.

FLOYD, B. AND ADINDE, M. Farm settlements in eastern Nigeria: a geographical appraisal. Econ. Geog., July 1967, pp. 189-230.

FREEMAN, A. M., Ill. Six federal reclamation projects and the distribution of income. Water Resources Research, 1967, 3(2), pp. 319-32.

GAFFNEY, M. Benefits of farm programs. Am. Jour. Econ. Soc., July 1967, pp. 237-50.

GARCLA, A. El problema empresarial y la reforma agraria en Am6rica Latina, El Trimestre Econ., April-June 1967, pp. 219-66.

GORDON, R. L. A reinterpretation of the pure theory of exhaustion. Jour. Pol. Econ., June 1967, pp. 274-86.

HILL, R. D. Agricultural land tenure in West Malaysia. Malayan Econ. Rev., April 1967, pp. 99-116.

JAMES, L. D. Economic analysis of alternative flood control measures. Water Resources Research, 1967, 3(2), pp. 333-43.

KARCZ, J. F. Thoughts on the grain problem. Soviet Stud., April 1967, pp. 399- 434.

KHUSRO, A. M. The pricing of food in India. Quart. Jour. Econ., May 1967, pp. 271-85.

KITCHEN, J. W. AND HENDON, W. S. Land values adjacent to an urban neighborhood park. Land Econ., Aug. 1967.

LAWSON, R. M. Innovation and growth in traditional agriculture of the Lower Volta, Ghana. Jour. Develop. Stud., Oct. 1967.

LECHI, F. Programmazione dinamica e sue applicazioni in economia agraria. (With English summary.) Riv. Internaz. di Sci. Econ. e Com., July 1967, pp. 637-62.

LiND, R. C. Flood control alternatives and the economics of flood protection. Water Resources Research, 1967, 3(2), pp. 345-57.




LrrTLE, A. J. Aspects of the world wool market, 1939-53. Australian Econ. Papers, Dec. 1966, pp. 165-82.

MAO, J. C. T. Quantitative analysis of urban renewal investment decisions. Jour. Finance, May 1967, pp. 195-207.

MENON, P. G. Self-suficiency in food through material-management. Quart. Jour. Indian Stud. Soc. Sci., Jan. 1967, pp. 26-31.

OSHIMA, H. T. Food consumption, nutrition, and economic development in Asian countries. Econ. Develop. and Cult. Change, July 1967, pp. 385-97.

PAUTARD, J. Possibilites de dynamisme interne dans l'agriculture malgache. Cahiers de 1'I.S.E.A., Feb. 1967, pp. 87-104.

PRESTAMBURGO, M. La programmazione dinamica nei problemi che implicano scelte relative a colture arboree. (With English summary.) Riv. Internaz. di Sci. Econ. e Com., July 1967, pp. 663-73.

RAPKIN, C. New towns for America: from picture to process. Jour. Finance, May 1967, pp. 208-19.

RILEr, R. C. Changes in the supply of coking coal in Belgium since 1945. Econ. Geog., July 1967, pp. 261-70.

RIMMER, P. J. Recent changes in the status of seaports in the New Zealand coastal trade. Econ. Geog., July 1967, pp. 231-43.

STOBER, W. J. AND FALiK, L. H. A benefit-cost analysis of local water supply. Land Econ., Aug. 1967.

WENDT, P. F. Large-scale community development. Jour. Finance, May 1967, pp. 220-39.

WERY, R. Un modele pr6visionnel de l'agriculture belge. Cahiers icon. de Bruxelles, 1967, (34), pp. 273-94.



Documents

Land Economics; Agricultural Economics; Economic Geography; Housing