Takatoshi Tabuchi

Taste Heterogeneity, Labor Mobility and Economic Geography

This paper investigates the impact of the heterogeneity of the labor force on the spatial distribution of activities. This goal is achieved by applying the tools of discrete choice theory to an economic geography model. We show that taste heterogeneity acts as a strong dispersion force. We also show that the relationship between the spatial distribution of the industry (the wage differential) and trade costs is smooth and bell-shaped. Finally, while Rawlsian equity leads to the dispersion of industry, our analysis reveals that efficiency leads to a solution close to the market outcome, although the latter is likely to involve too much agglomeration compared to the former.

Asymmetric equilibria in spatial competition

Abstract The main purpose of this paper is to study the impact of consumer concentration around the market center on the equilibrium locations of location-price games. In the case of symmetric triangular density, it is shown that no symmetric equilibrium exists. However, we demonstrate the existence of asymmetric equilibria in pure strategies; these equilibria are also characterized. Our secondary purpose is to study the sequential entry of two firms when the location space is not restricted to the market space. This leads us to uncover a substantial first-mover advantage, which has been neglected in the literature.

Changes in Transport and Non Transport Costs: Local vs. Global Impacts in a Spatial Network

We develop a multi-country Dixit-Stiglitz trade model and analyze how industry location and welfare respond to changes in: (i) transport frictions (e.g., infrastructure, transportation technology); and (ii) non-transport frictions (e.g., tariffs, standards and regulations). We show that changes in non-transport frictions, which are usually origin-destination specific, do not allow for any clear prediction as to changes in industry location and welfare; whereas changes in transport frictions, which are usually not origin-destination specific, may allow for such predictions. In particular, we show that reductions in transport frictions occurring at links around which the spatial network is locally a tree are Pareto welfare improving.

Two-stage two-dimensional spatial competition between two firms

Abstract In this paper we analyze the Hotellings model of spatial duopoly on two-dimensional space, where the first stage is the location game, and the second stage is the price game. In the case of a uniform rectangular distribution of consumers, we prove that (i) two firms maximize their distance in one dimension, but minimize their distance in the other dimension, (ii) the firms are better off if they locate sequentially rather than simultaneously, and (iii) the welfare loss in equilibrium is 1.6 to 4 times as large as that in optimum.

Regional growth in postwar Japan

Abstract We show that a shift from light to heavy industries brought about the fast regional transformation from the Tokyo-Osaka bipolar system to the Pacific industrial belt system, and a shift from heavy to high-tech and service industries induced the second transformation to the Tokyo monopolar system. We also show that the recent development in telecommunications and transportation technologies tend to agglomerate knowledge-intensive activities in the core regions of Japan while dispersing mass-production activities to nonmetropolitan regions and overseas. This partly explains the recent renewed tendency of the increasing income differential between the core and peripheral regions.

Rice crop growth and yield as influenced by changes in ponding water depth, water regime and fertigation level

Irregularities in land leveling, such as low lying areas or reverse grades, can cause too little or too much ponding water depth resulting in a variation in the crop yield within a plot, especially if paddy field is a large sized one. Experiments were conducted in Wagner pots to evaluate the effect of different ponding depths (created by surface irrigation practice) on paddy rice growth and yield. Wide ranges of ponding water depths were created under continuous, intermittent and variable ponding water regimes and under no, low, medium and high fertigation conditions. Plant height and grain yield were measured under 0, 3, 6, 9, 12, 15 and 18 cm ponding depth treatments. Results indicated that an optimum ponding depth of 9 cm can improve paddy growth and production conditions compared to too shallow or too deep ponding water depths. High values of water productivity were found at 9 cm ponding water depth under different water regimes and fertigation levels. Less yield reduction occurred at shallower depths than that of deeper ponding depths. Hence, high leveling accuracy is needed in paddy fields to have maximum production.

Urban agglomeration, capital augmenting technology, and labor market equilibrium

Abstract The objective of this paper is to measure urban productivity using Japanese city-based cross-sectional data of 1980. The results of a labor-demand OLS regression analysis suggest two kinds of possible model specifications: capital augmenting and demand-supply equilibrium. Each model type is considered, and the average effect of population density on labor productivity is shown to be 4.3% in the capital augmenting model and 8.0% in the equilibrium model.

On Interregional Price Differentials

It is often observed that the land value is extremely high in very big cities while commodity prices are not. The objective of this paper is to consider interregional price differentials in a microeconomic framework by explicitly incorporating land for housing, and to conduct an empirical analysis of the interregional differential indices. It is revealed that across regions the CPI varies slightly, per capita income varies more, the housing rent varies still more and the land value varies the most in Japanese cities. I provide microeconomic reasons for the differences in these differentials. JEL Classificiation Numbers: R00, R10.

The systemic variables and elasticities in Alonso's general, theory of movement

Abstract This paper explores the theoretical underpinnings of interregional movement models generalized by William Alonso focusing on the systemic effects of origin supply conditions and destination demand conditions. It is found that although Alonsos theory is logically consistent in terms of regional aggregation and interregional migration accounts, in practice the elasticity estimation of the systemic variables is problematic. Unless the affinity term is broadly defined, the trends in the ratio of interregional to intraregional affinities, cast suspicion on the family of spatial interaction models because of the inseparability of distance from origin and destination characteristics, and spatial autocorrelation problem.

Existence and stability of city-size distribution in the gravity and logit models

An attempt is made to analyze reasons for and consequences of migration under zero population growth by use of a system of simultaneous differential equations. Intercity migration is assumed to take place based upon differences in utilities, where the utility function is expressed as a function of city size. It is revealed that a deterministic specification of the utility leads to an unstable distribution of city sizes, whereas a stochastic specification does not. Existence and stability of equilibria are examined for two representative stochastic migration models: the origin-constrained gravity model and the logit model. It is then argued that population concentration can be explained by an increase in urbanization economies, and population decentralization can be due to a decrease in intercity transportation and communication costs.