Migration when social preferences are ordinal: Steady-state population distribution, and social welfare

Oded Stark

No 98, University of Tübingen Working Papers in Business and Economics from University of Tuebingen, Faculty of Economics and Social Sciences, School of Business and Economics

Abstract: This paper adds three dimensions to the received literature: it models migration when the individuals' preferences regarding their relative income are ordinal, it works out the resulting spatial steady-state distribution of the individuals, and it shows that the aggregate of the individuals' migration choices in the spatial steady-state distribution sums up to the social optimum. This finding does not apply when the individuals' preferences regarding their relative income are cardinal. We highlight the importance of the assumption about the nature of the individuals' social preferences (whether ordinal or cardinal) to studying and predicting their migration behavior, and to elucidating the consequences of that behavior for social welfare.

Keywords: Ordinal preferences; Distaste for low relative income; An ordinal measure of income relative deprivation; Interregional migration; Steady-state spatial distribution; Social Welfare (search for similar items in EconPapers)
JEL-codes: C61 C62 D50 D60 D62 I31 R13 R23 Z13 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-int, nep-mig, nep-upt and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

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https://www.econstor.eu/bitstream/10419/162139/1/888198469.pdf (application/pdf)

Related works:
Journal Article: Migration when Social Preferences are Ordinal: Steady-state Population Distribution and Social Welfare (2017)
Working Paper: Migration when social preferences are ordinal: Steady state population distribution, and social welfare (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:tuewef:98

DOI: 10.15496/publikation-17600

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