Telecommunications, the Transition from Regulation to Antitrust

In recognition of the fact that the competition among telecommunications platforms that demands deregulation is not ubiquitously effective, I endorse and expatiate on the objective 'bright line' test proposed by the Canadian company TELUS for determining when and within what geographic market boundaries to deregulate. In accordance with that test, I then discuss the nature of the antitrust policy upon which falls responsibility for preserving the competition that is the logical surrogate for direct regulation. Following the rule of reason prescribed by the United States Supreme Court 95 years ago, I would have that policy concentrate on the behavior of the incumbent access providers and the intent that may logically be inferred from it. Finally, applying the two preceding expositions to the highly politically charged, largely ideological demands for a legislatively imposed rule of "network neutrality," I contend that if the two previously recommended policies are followed, such a legislative mandate would be both supererogatory and counterproductive.Technology and Industry, Regulatory Reform

California Voting and Suburbanization Patterns: Implications for Transit Policy, MTI Report 12-05

Public transit is an environmentally friendly transportation mode that usually focuses on transporting people within and to the city center. However, over the last 60 years, population and employment has been suburbanizing. As the median voter lives further from the city center, and thus enjoys fewer benefits from accessing public transit, does this reduce such a voter’s propensity to support public investment in public transit improvements? We analyze voting patterns on 20 transit-related ballot propositions from state-wide elections in California between 1990 and 2010. Controlling for demographic, socio-economic and political ideological factors, we focus on the role of suburbanization as a possible causal factor in determining public support for public transit investment. The results provide a rich picture of the attitudes towards transportation policy among California voters, and will help policy makers to better understand citizen preferences and to better predict how future trends will shift support towards or against transit. Finally, we suggest ways policy makers can use urban land markets to increase support for trans

Estimating Housing Demand with an Application to Explaining Racial Segregation in Cities

We present a three-stage estimation procedure to recover willingness to pay for housing attributes. In the first stage, we estimate a non-parametric hedonic home price function. Second, we recover each consumer's taste parameters for product characteristics using first order conditions for utility maximization. Finally, we estimate the distribution of household tastes as a function of household demographics. As an application of our methods, we compare alternative explanations for why blacks choose to live in center cities while whites suburbanize.

Understanding the Decline in Social Capital, 1952-1998

We evaluate trends in social capital since 1952 and assess explanations for the observed declines. We examine both social capital centered in the community and in the home and argue that the decline in social capital has been over-stated. Controlling for education, there have been small declines in the probability of volunteering, larger declines in group membership, and still larger declines in the probability of entertaining since the 1970s. There have been no declines in the probability of spending frequent evenings with friends or relatives, but there have been decreases in daily visits with friends or relatives. Rising community heterogeneity (particularly income inequality) explains the fall in social capital produced outside the home whereas the rise in women's labor force participation rates explains the decline in social capital produced within the home.

Decentralized Employment and the Transformation of the American City

This paper examines the decentralization of employment using zip code data on employment by industry. Most American cities are decentralized--on average less than 16 percent of employment in metropolitan areas is within a three mile radius of the city center. In decentralized cities, the classic stylized facts of urban economics (i. e. prices fall with distance to the city center, commute time rise with distance and poverty falls with distance)no longer hold. Decentralization is most common in manufacturing and least common in services. The human capital level of an industry predicts its centralization, but the dominant factor explaining decentralization is the residential preferences of workers. Political borders also impact employment density which suggests that local government policies significantly influence the location of industry.

Power Couples: Changes in the Locational Choice of the College Educated, 1940-1990

The rise of the dual career household is a recent phenomenon spurred by the increase in married women's labor force participation rates and educational attainment rates. Compared to traditional households these households must solve a colocation problem. This paper documents trends in locational choice between large and small metropolitan areas and non-metropolitan areas by household type from 1940 to 1990. We find that college educated couples are increasingly concentrated in large metropolitan areas and attribute at least half of this increase to the growing severity of the colocation problem. We also find that the relative returns for a college-educated couple of being in a large relative to a small city have increased across decades. Our results suggest that because skilled professionals are increasingly bundled with an equally skilled spouse, smaller cities may experience reduced inflows of human capital relative to the past and therefore become poorer. We examine how the relationship between rankings of university graduate programs and city size has changed between 1970 and 1990 to provide suggestive evidence on the importance of city size to firms' ability to attract the best workers.

Sprawl and Urban Growth

Cities can be thought of as the absence of physical space between people and firms. As such, they exist to eliminate transportation costs for goods, people and ideas and transportation technologies dictate urban form. In the 21st century, the dominant form of city living is based on the automobile and this form is sometimes called sprawl. In this essay, we document that sprawl is ubiquitous and that it is continuing to expand. Using a variety of evidence, we argue that sprawl is not the result of explicit government policies or bad urban planning, but rather the inexorable product of car-based living. Sprawl has been associated with significant improvements in quality of living, and the environmental impacts of sprawl have been offset by technological change. Finally, we suggest that the primary social problem associated with sprawl is the fact that some people are left behind because they do not earn enough to afford the cars that this form of living requires.

Network Neutrality

Much of the advocacy of legislatively-mandated network neutrality is based on a simple fallacy, namely, that differing charges to suppliers of content to the Internet for correspondingly differing speeds of delivery are inherently discriminatory. They are not; and an attempt to prohibit them would prevent the Internet's offering a full range of services, with widely diverging tolerances for latency. Preservation of the open end-to-end character of the Internet may well, however, require vigilant prohibition of vertical squeezes and other unfair methods of competition and authority of an antitrust agency to compel interconnections.