Regional migration is analyzed utilizing a model that develops a system of urban areas. The areas differ in their endowment of a site-specific factor—climate is used as the example. The effects of differences in tax rates and technology are determined in a model where the price of housing is endogenous. Compensation for an inferior climate occurs through regional differences in income levels or the price of housing, dependent on the manner in which climate affects production or consumption. The market distribution of households is found to be suboptimal in cases where utility is derived directly from the consumption of climate. The locational choice of households is determined by a variety of factors. Recent contributions concentrating on climatic variations are Graves [1979], Graves and Linneman [1979], and Izraeli [1973]. A problem with the migration literature has been the lack of specifi-cation of a model that contains a system of urbanized areas. The model should determine the equilibrium size of urban areas. The migration flow results from the adjustment of the stock of population to changes

Measuring the labor-force response of a woman to changes in her husband's earnings is the goal of this dynamic model. Allowing for uncertainty, the model modifies the constant shadow price of initial assests framework so that the shadow price varies over time. It is shown that the change in a woman's labor supply is related to the deviation of the husband's actual work hours from the expected amount. The estimation indicates that the largest response to the loss of husband's income occurs with a divorce or separation; smaller effects are noted for widowhood, and husband's unexpected unemployment or health change. Copyright 1989 by MIT Press.

Although the economic literature has analyzed some components of the headship decision, study of household formation has been primarily in the realm of demography. The authors expand the demographic model to include economic determinants of the decision to remain with parents or not and to live with a group or separately. They focus on measuring the effect of spatial variations in rental costs on the probability of forming a household. The authors' results, based on a sample of 2, 573 youths in their twenties, indicate that the cost of housing and potential labor earnings are important variables in explaining this probability. Copyright 1993 by MIT Press.