Economics at your fingertips  

External Equilibrium in Mobility and Redistribution Economies

M. Socorro Puy ()

Journal of Public Economic Theory, 2003, vol. 5, issue 2, 363-379

Abstract: We develop a simple model in which individuals, who are differentiated by skill levels, freely choose location among different regions. In each region there is a local labor market that determines the wage and a local redistributive taxation that is exogenously determined. Equilibrium requires that no agent wishes to migrate. We define some sufficient conditions for equilibrium, and we show that the greater the difference in mean skills across regions, the greater the difference in redistributive taxations across regions should be to avoid migration flows. A condition for uniqueness and stability of equilibrium is also provided. Copyright 2003 Blackwell Publishing Inc..

Date: 2003
References: Add references at CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link) ... &year=2003&part=null link to full text (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1097-3923

Access Statistics for this article

Journal of Public Economic Theory is currently edited by Rabah Amir, Gareth Myles and Myrna Wooders

More articles in Journal of Public Economic Theory from Association for Public Economic Theory Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().

Page updated 2020-06-21
Handle: RePEc:bla:jpbect:v:5:y:2003:i:2:p:363-379