Spatial migration

Carmen Camacho

Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne

Abstract: We develop a model economy adapting Hotelling's migration law to make individuals react to the gradient of their indirect utility. In a first version, individuals respond uniquely to utility differences. In a second phase, we insert our migration law as a dynamic constraint in a spatial model of economic growth in which a policy maker maximizes overall welfare. In both cases we prove the existence of a unique solution under certain assumptions and for each initial distribution of human capital. We illustrate some extremely interesting properties of the economy and the associated population dynamics through numerical simulations. In the decentralized case in which a region enjoys a temporal technological advantage, an agglomeration in human capital emerges in the central area, which does not coincide with the technologically advanced area. In the complete model, initial differences in human capital can trigger everlasting inequalities in physical capital

Keywords: Migration; spatial dynamics; economic growth; parabolic PDE, optimal control (search for similar items in EconPapers)
JEL-codes: C61 J6 R11 R12 R13 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2013-02
New Economics Papers: this item is included in nep-geo, nep-mig and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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ftp://mse.univ-paris1.fr/pub/mse/CES2013/13017.pdf (application/pdf)

Related works:
Working Paper: Spatial migration (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:mse:cesdoc:13017

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