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What explains persistent regional earnings differences? This paper argues that regional differences in amenities can account for the wage differences; in contrast, cost of living variations do not account for wage differences, but actually exacerbate them. This conclusion results from a model in which variations in rents and wages are equalizing differences for amenity differences. Empirical results are consistent with the model.

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This article clarifies several points concerning the effects of public debt. First, the article clarifies the distinction between the Ricardian equivalence and Barro neutrality theorems. Second, the article develops a voting model with two types of families, neither of whom have fiscal illusion. We show that debt may have redistributive consequences and that some voters will rationally prefer debt to taxes. In this way, we develop a rudimentary positive theory of debt issue. We also verify the proposition that debt issues that redistribute income are not neutral with respect to savings and consumption.

The introduction of segregation laws for municipal streetcars is examined. The economics of private and public segregation is analyzed first, taking note of the particular features of the streetcar industry, followed by a discussion of the contemporary debates on streetcar segregation laws in a number of southern cities. The evidence presented suggests that segregation laws were binding constraints and not simply the codification of customary practice. Furthermore, the streetcar companies were not the initiators of segregation and sometimes actively resisted it. These findings are related to several major interpretations of the origins of segregation.