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Urban Economics Problem Set #2
发布时间:2023-01-09
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Urban Economics
Problem Set #2
1) No late problem sets
2) You can only upload one single file. No multiple file submissions.
3) For this Problem Set we only accept EXCEL formats (use a different worksheet for each question). Note, you can write text into Excel worksheets.
4) Show your work
Question (1)
Suppose a transport cost-oriented firm consumes two inputs (one from source I1, the other from source I2) in order to produce one output, which is consumed at the output market M.
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a) Assume M’s monetary weight equals $10 and the monetary weights for I1 as well as for I2 equal $5 each. Where, if any, is the Nash Equilibrium?
b) Now assume the monetary weight of input source I1 increases to $20 and the one for I2 falls to $0; M’s monetary grows to $20; where will the company locate now?
c) Is it possible that the firm’s transfer-cost-minimizing location can be anywhere? If yes, under what circumstances? If no, why not?
Question (2)
Go to Harvard’s Cluster Mapping Project’s main site (http://clustermapping.us) and click
on “Clusters.”
Scroll down until you see “Show Clusters by – List.”
Select the Printing Cluster under Traded Clusters and scroll to the map on top. (You must go to the map – don’t download any data if you don’t see the map)
On the left sidebar you now have various choices; select Economic Areas. Calculate for 2000 and for 2016 the CR4, HHI and Gini Coefficients for employment and for the annual payroll (which is the product of Employment*Annual Wage). For the Gini
Coefficient, assume that all regions are of identical size (that is, of identical width). Make sure you match each area’s employment with its wage. Overall, you have to calculate 12 coefficients (see table below).
NOTE: in case the wage is listed as zero, treat it as zero; don’t delete it.
Year |
CR4 |
HHI |
GINI |
|
Employment |
||
2000 (179 Econ Areas) |
|
|
|
2016 (179 Econ Areas) |
|
|
|
|
|
|
|
|
Annual Payroll |
||
2000 (179 Econ Areas) |
|
|
|
2016 (179 Econ Areas) |
|
|
|
Question (3)
Assume 8 equally-sized counties depend on the production of grapes. Grape growing employment in the respective counties is given by:
County |
A |
B |
F |
H |
C |
D |
E |
G |
Grape growing jobs |
125 |
30 |
180 |
15 |
100 |
100 |
20 |
30 |
Calculate the Gini coefficient ofjob concentration (report 4 decimals)
Question (4)
Assume there are only 6 counties in a country, and there are only three industries (beer, bread and shirts) that employ people. The employment numbers are given in the Table below:
|
Employment Beer |
Employment Bread |
Employment Shirts |
County 1 |
200 |
4 |
45 |
County 2 |
10 |
6 |
12 |
County 3 |
120 |
10 |
10 |
County 4 |
60 |
10 |
16 |
County 5 |
10 |
20 |
12 |
County 6 |
2 |
60 |
12 |
Calculate the ELQs for the following county and industry combinations: (a) Bread in County 2
(b) Beer in County 1
(c) Shirts in County 4