TY - JOUR
T1 - Multipliers, markups, and mobility rents
T2 - In defense of 'chain models' in urban and regional analysis
AU - Persky, Joseph
AU - Felsenstein, Daniel
PY - 2008
Y1 - 2008
N2 - Social scientists have long used 'chain' metaphors, yet their methodological justification remains somewhat hazy. This paper offers a rationale for using chains to measure changes in economic welfare in urban and regional contexts. In contrast to the Marshallian surplus, which well describes situations in which price changes generate rents in a single market, chains are especially useful in markets where changes lead to the transmission of demand or supply through a series of markets characterized by sticky prices and markups. This argument is illustrated by reference to chain-driven analyses of local production, labor, and housing markets. The institutional structures that underpin chain models are stressed.
AB - Social scientists have long used 'chain' metaphors, yet their methodological justification remains somewhat hazy. This paper offers a rationale for using chains to measure changes in economic welfare in urban and regional contexts. In contrast to the Marshallian surplus, which well describes situations in which price changes generate rents in a single market, chains are especially useful in markets where changes lead to the transmission of demand or supply through a series of markets characterized by sticky prices and markups. This argument is illustrated by reference to chain-driven analyses of local production, labor, and housing markets. The institutional structures that underpin chain models are stressed.
UR - http://www.scopus.com/inward/record.url?scp=65949107066&partnerID=8YFLogxK
U2 - 10.1068/a4027
DO - 10.1068/a4027
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AN - SCOPUS:65949107066
SN - 0308-518X
VL - 40
SP - 2933
EP - 2947
JO - Environment and Planning A
JF - Environment and Planning A
IS - 12
ER -
