Kokomo Tribune; Kokomo, Indiana

Columns

December 29, 2013

MICHAEL HICKS: Simple economic model

High-quality places to live key to regional growth.

It is Christmas time again, and as usual I struggle to find good gifts for those I care about. To be honest, they are not much help. My lovely wife told me she might need a cleaning appliance of some sort, and my 9 year old confessed to wanting new underwear, socks and perhaps a few surprises.

About the only thing I know to give this year that might be honestly appreciated is a brief column on a subject that affects almost every community. Moreover, it is almost entirely free of the ill-informed ideology that seems to drive so much public policy these days. It is a simple economic model of regional growth.

Like any model, the regional growth model begins with some hypotheses. First, let us suppose households that are better educated and more skilled have more choices about where they choose to work and live. Second, let us suppose households are willing to make trade-offs between the quality of life in the place they live and their earnings. So, households must be compensated extra to live in less attractive places. Finally, let us assume businesses seek to maximize profits, a process which includes worrying about labor costs. None should any of this seem too much a stretch of common sense.

An astute reader might see four or more equations in the preceding paragraph. Solving these equations provides us some clear outcomes. Regions that are attractive places to live will attract households with greater location choices. These households will inevitably be better educated and command a higher income. However, all things being equal, workers in these places will not require quite as high a wage to live in these places as they would to live in a less desirable place.

The first result of solving this model is the not especially surprising result that nice places tend to attract more people, and these people tend to be of higher income. This alone would commend efforts to improve communities as an important economic development tool. Population growth is, after all, the chief worry for most places in Indiana. However, there is more to the story than just this.

Text Only | Photo Reprints
Columns
  • DAVE BANGERT: Indiana's new chief justice and court's 'mom question' Two years ago, as Loretta Rush ascended from Tippecanoe Superior Court 3 judge to the state’s Supreme Court, I dropped this line in a column celebrating someone who had earned her place.“Across the state, the headline will be: ‘[Mitch] Daniels Choose

    August 14, 2014

  • JEFFREY McCALL: POTUS promises of transparency fail to materialize The United States system of government relies on citizens having full access to information that can be used in self-governance. Journalists and other First Amendment advocates were enthused when the Obama administration came into office with convinc

    August 14, 2014

  • Rob Burgess House of Burgess: RIP Robin Williams

    I was re-watching the 2006 movie “Little Miss Sunshine” Monday when I heard my phone buzz. After the credits had rolled, I looked at the screen and found myself shocked.It was a news alert that Robin Williams had died that morning at the age of 63 of an apparent suicide.

    August 13, 2014 1 Photo

  • ANDREA NEAL: 'Paddle Your Own Canoe' is a Hoosier inspiration

    Editor’s note: This is one in a series of essays leading up to the celebration of the Indiana Bicentennial in December 2016. James Whitcomb Riley was the most acclaimed, but he wasn’t the first Hoosier poet to gain national fame. Sarah T. Bolton dese

    August 13, 2014

  • DAVE BANGERT: Rokita, illegal immigration, Ebola outbreak and context At first listen last Monday, there was something so unsavory about our congressman, Todd Rokita, whipping up two full-fledged crises — Central American children at the U.S. southern border and the African scourge of Ebola — into one pungent sound bit

    August 12, 2014

  • DAN COATS: Let's give nonprofits relief from IRS delays A flurry of scandal has recently surrounded the Internal Revenue Service.Over the past few months, we have learned about missing emails from IRS employees and revelations of clear bias and hostility by a top IRS official towards organizations with ce

    August 12, 2014

  • BRIAN HOWEY: Pitchforks and pikes in our summer of discontent Congress is ... embarrassing. Our political system is failing us. On an individual basis, many of us have respect for members of our delegation. We can have a common sense conversation with a senator, congressman or congresswoman, and then they go ba

    August 11, 2014

  • DICK WOLFSIE: Enough reminders to forget It began with a simple phone call to my friend, Auri, a computer geek I asked to help me with my very successful website, which right now is attracting up to three visitors a month. To have a strong online presence, you have to spend several hours a

    August 11, 2014

  • ED VASICEK: Outsourced jobs, health crises in foreign lands The other week, my Internet was giving me trouble. I called the support number, and — to my surprise — I spoke to a representative who sounded as American as apple pie. It turned out the technical problem was an oversight on my end and fixed quickly.

    August 10, 2014

  • MICHAEL HICKS: Dodging corporate taxes Corporations are among our oldest institutions. Something like a joint stock company probably triggered the earliest formal written communication — the accounting ledger. It should be unsurprising that the early traders of Mesopotamia used a corporat

    August 10, 2014

Latest news
Featured Ads
Only on our website
AP Video
Furry Roommates: Dorms Allowing Cats and Dogs Chase Rice Defends Bro-Country 'Jersey Shore Massacre' Pokes Fun at MTV Series Raw: Wash. Mudslides Close Roads, Trap Motorists DC's Godfather of Go-Go Honored Ukraine Calls Russian Convoy a 'direct Invasion' Girl Meets Her 'one in the World' Match Coal Gas Boom in China Holds Climate Risks Japan Landslide Rescuers Struggle in Heavy Rain Raw: Severe Floods, Fire Wrecks Indiana Homes Endangered Red Wolves Face Uncertain Future Raw: Russian Aid Convoy Arrives in Ukraine Okla. Policeman Accused of Sex Assaults on Duty Dominican Republic Bans Miley Cyrus Concert Raw: Israeli Air Strike in Gaza Raw: Bodies of MH17 Victims Arrive in Malaysia Attorney: Utah Eatery Had Other Chemical Burn
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
Obituaries
Poll
Kelly Lafferty's video on Tom Miller