ECONOMIES OF SCALE IN A MULTIPLANT TECHNOLOGY: EVIDENCE FROM THE OILPATCH

A unique micro data set detailing operating costs and technical characteristics of 133 Texas oil leases was used to estimate an econometric cost function, yielding a number of interesting findings. First, evidence of economies of scale in crude extraction implies additional gains from oil field unitization and helps explain the paradox that voluntary unitization often occurs in the later stages of a field's life. Second, marginal operating costs per well were found to be about 30 percent below average costs, explaining why many wells remain operational despite falling crude oil prices. Finally, the results confirmed a number of plausible technical relationships. For example, operating costs rise sharply with depth, explaining the existence of shallow, low-production stripper wells.     

Wage patterns: An evolutionary perspective

The existence of wage patterns is often cited as evidence that the labor market is affected by institutional forces outside the purview of economic theory. In this paper, it is argued that such patterns can be understood as the result of an information-acquiring activity of labor market participants that enhances their chance of survival. Wage comparisons are selected, sometimes mistakenly, in an effort to cope with the uncertainty of the environment. This evolutionary analysis denies a distinction between market forces and spillovers. Helpful comments on an earlier draft were received from John Pencaval, Melvin Reder, and Stanley Siebert. The usual disclaimer attaches.     

A life satisfaction measure based on judgment theory

A life satisfaction measure is developed in this paper drawn from a judgment-type theory. This measure is based on the theoretical notion of life satisfaction being a function of a comparison between perceived life accomplishments and a set of evoked standards. These standards are classified as to their derivative sources (e.g., the life accomplishments of relatives, friends, associates, past experience, self-concept of strengths and weaknesses, and average person in a similar position) and different forms (e.g., standards based on ideal, expected, deserved, minimum tolerable, and predicted outcomes). Two studies were conducted on the elderly to ascertain the internally consistent and possessing construct validity correlations through high and internally consistent and possessing construct validity correlations through high and positive correlations with the Delighted-Terrible Life Satisfaction Scale; through significant and positive correlations with cognitive age, income, employment, education, marital status, social contact, activity, religiosity, morale, television viewership, and selfrated health; and through nonsignificant correlations with chronological age, gender, and parenthood.     

Monitoring the metropolitanization process

Alternative approaches have led to different interpretations of the metropolitanization process in the United States. We identify and illustrate several methods and procedures for monitoring metropolitan-nonmetropolitan population change using the 1950-1980 U.S. decennial censuses. Two basic approaches are compared: constant area approaches and component methods. In addition, we assess the effects of changing metropolitan definitions on metropolitan-nonmetropolitan growth. The results clearly reveal that the underlying mechanics of metropolitanization not only are complex but have changed substantially during the 1950-1980 period. We conclude with observations regarding the use of these procedures in future research.     

PROFIT AND EXPENDITURE FUNCTIONS IN BASIC PUBLIC FINANCE: AN EXPOSITORY NOTE

This paper demonstrates how profit and expenditure functions may be used to prove fundamental results about deadweight losses suffered by consumers, producers, and resource owners. Losses arising from excise taxes and subsidies are examined and, in the case of a tax, the individual level analysis is extended to the market level in a partial equilibrium setting. In addition, profit and expenditure functions are applied to quantity constraints, two-part tariffs, all-or-nothing choices, and reservation prices. Although no new results are derived, the paper provides motivation for the study of indirect objective functions and duality.     

War-wounded refugees: labor market integration after two years in Sweden

This study investigated labor market integration in a group of war-wounded refugees after two years in Sweden. The study group consisted of 54 war-wounded asylum applicants ( n =25) and quota refugees ( n =29) who arrived in Sweden in the late 1980s. They were consecutively investigated during hospitalization, shortly after arrival, and followed up two years later. After two years, 24% were at work or were occupied in vocational training courses. The degree of disability was not related to labor market integration. Length of time spent in the municipality was directly associated with labor market integration. Present well-being, Swedish language skill and education were factors related to integration. However, these factors differed in their relation to labor market integration when the length of time spent in the municipality was considered. With respect to the first two years in Sweden, the war-wounded group seemed to follow well an ideal labor market integration process for refugees. A short wait for a municipality to reside in and a careful introduction into the municipality might have been available for this group more than for other refugees.