The Regional Distribution of Population, Migration, and Climate

Donald Haurin

The Quarterly Journal of Economics, 1980, vol. 95, issue 2, 293-308

Abstract: 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.

Date: 1980
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