Multipliers, markups, and mobility rents: In defense of 'chain models' in urban and regional analysis

Joseph Persky*, Daniel Felsenstein

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

5 Scopus citations

Abstract

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.

Original languageAmerican English
Pages (from-to)2933-2947
Number of pages15
JournalEnvironment and Planning A
Volume40
Issue number12
DOIs
StatePublished - 2008

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