Spatial Equilibrium Theory Research Articles

Joint Optimization of Urban Water Quantity and Quality Allocation in the Plain River Network Area

Cities located in the plain river network area possess abundant water resources. However, due to urbanization and industrialization, there is a severe water shortage problem caused by poor water quality. To overcome this issue, a multi-objective optimal allocation model of water quantity and quality is proposed. The model considers regional water resources, economic, social, and environmental requirements and uses the NSGA-II genetic algorithm for model solution. Furthermore, to evaluate and analyze the degree of spatial equilibrium of regional water resources and how it relates to economic factors, the study uses the spatial equilibrium theory of water resources and the Gini coefficient of water resources. Jingjiang, a city in Jiangsu Province characterized by a typical plain river network area, was selected as the study area. The results of the optimal allocation of water resources in Jingjiang City show that: (1) total water consumption and chemical oxygen demand (COD) emissions for the current planning period are within their respective limits. In addition, the implementation of the water conservation program has resulted in a 5% reduction in total water shortages and a reduction of COD emissions by 1276 tons, (2) the structure of the water supply in Jingjiang City has been optimized; more than 90% of Ⅳ~V surface water is used for agriculture, and the domestic water supply is mainly from transit water, which effectively ensures that high-quality water is used in the domestic water supply, (3) the spatial equilibrium coefficient of water resources per sub-area is between 0.33 and 0.74, indicating an unbalanced or almost unbalanced level. The application of a water conservation program has resulted in the improvement of the spatial equilibrium level of water resources in each sub-area, with an overall spatial equilibrium of 0.64, indicating a more balanced level; the degree of matching of water resources with population, GDP, and land area is at the matching level, (4) according to the Gini coefficient of the distribution of water resources, the plains river network area displays a better match between water resources and economic and social factors of each water receiving area, thanks to its unique geographical location and natural conditions. This study can serve as a decision-making reference for addressing the urban water quality water shortage problem in the plain river network area.

Quality of life in Chinese cities

The Rosen-Roback spatial equilibrium theory states that cross-city variations in wages and housing prices reflect urban residents' willingness to pay for urban amenities or quality of life. This paper is the first to quantify and rank the quality of life in Chinese cities based on the Rosen-Roback model. Using the 2005 1% Population Intercensus Survey data, we estimate the wage and housing hedonic models. The coefficients of urban amenity variables in both hedonic models are considered the implicit prices of amenities and are used as the weights to compute the quality of life for each prefecture-level city in China. In general, provincial capital cities and cities with nice weather, good air quality, and accessible public transit have high quality of life. We also find that urban quality of life is positively associated with the subjective well-being of urban residents.

Quality of Life in Chinese Cities

The Rosen-Roback spatial equilibrium theory states that cross-city variations in wages and housing prices reflect urban residents’ willingness to pay for urban amenities or quality of life. This paper is the first to quantify and rank the quality of life in Chinese cities based on the Rosen-Roback model. Using the 2005 1% Population Intercensus Survey data, we estimate the wage and housing hedonic models. The coefficients of urban amenity variables in both hedonic models are considered the implicit prices of amenities and are used as the weights to compute the quality of life for each prefecture-level city in China. In general, provincial capital cities and cities with nice weather, good air quality, and accessible public transit have high quality of life. We also find that urban quality of life is positively associated with the subjective well-being of urban residents.

Modelling non-linear Spatial Market Integration and Equilibrium Processes in Hidden Markov Framework

Along the basic rationale of the Enke-Samuelson-Takajama-Judge spatial equilibrium theory and the dynamic conceptualizations made from arbitrage processes, the study explores regime-switching techniques in hidden Markov framework. This is motivated by complex non-linear structure inherent in market integration processes, which is derived from multiple equilibria conditions, and transaction costs constrained threshold autoregressive (TAR) effects. These place theoretical limitations on current time series empirical models that are applied in market integration studies. In equilibrium representation, the non-linearities imposed by both alternating rent levels and switching adjustment parameters are directly accommodated. Two synthesized time series market data sets of varying levels of non-linear structures are used to highlight the strengths and limitations of the Markov variants vis-Ã -vis the band-TAR models that have currently dominated market integration analysis. The former model could capture alternating adjustment processes implied by the relatively complex non-linear market data set while the later produced mixed results.

Implications of conceptual and data complexities on time-series econometric applications in market integration analysis

This article demonstrates and highlights the conceptual limits of current empirical market integration (MI) time series models (threshold models) and their implications on market effi ciency and competitive equilibrium conclusions. The complexities and diversities that characterise the analysis of the concept of market integration are evaluated within the framework of EnkeSamuelson-Takayama-Judge (ESTJ) spatial equilibrium theory. The effi ciency and competiveness implications drawn from MI models are limited by how the data generation process (DGP) is infl uenced by equilibrium conditions, by the tradability restrictions of the inter-markets relationships and by the presence of unobserved transactions costs. However, empirical applications scarcely address these limitations. Two sets of synthesized data with varying levels of non-linear complexity implied by alternating equilibrium conditions are generated to demonstrate conceptual limits of current threshold models in market integration analysis. Inconsistent conclusions that linear representations imply for threshold propagated DGP will also apply for conclusions derived from threshold models if markets are characterised by switching equilibria conditions.

A Spatial Knowledge Economy

Leading empiricists and theorists of cities have recently argued that the generation and exchange of ideas must play a more central role in the analysis of cities. This paper develops the first system of cities model with costly idea exchange as the agglomeration force. The model replicates a broad set of established facts about the cross section of cities. It provides the first spatial equilibrium theory of why skill premia are higher in larger cities and how variation in these premia emerges from symmetric fundamentals. (JEL J24, J31, O31, R12, R23)

Externalities, preferences, and urban residential location: Some empirical evidence

This study tests the validity of the preference explanation for the pattern of residential urban location based on a study of 2 North American cities and using the Alonso-Muth model. 3 explanations are given for the movement of high-income households to the suburbs from the city core: 1) the existence of important racial and social externalitites 2) the relative real estate tax savings that accrue to suburban residences and 3) the spatial equilibrium theory which was developed by Alonso with Muth. The Alonso-Muth model measures the effect that the bidprice of a house and income of a household have on the distance the residential location will be from the city core. Wheatons 1965 study of a San Francisco Bay area examined the Alonso-Muth model and found that it did not adequately explain the suburban location of higher-income households. The author points out the limitations of Wheatons study and justifies the need for another validation study of the model using household data from Montreal. These results are supportive of the Alonso-Muth model. To examine the validity of preferences as an explanation for the pattern of residential location of income groups a model of arbitrage between distance and housing are developed. Unlike the Wheaton study the major finding of this study is that consumers preferences can significantly determine residential location patterns in at least 1 urban center.