Trade and Migration in a Two-City Model of Transportation Investments

Komei Sasaki

The Annals of Regional Science, 1992, vol. 26, issue 4, 305-17

Abstract: A two-city model is developed in which both migration and trade of goods between two cities take place and the spatial structure of each city is recognized explicitly. Within this framework, reductions in intra- and inter-city transportation costs are evaluated from the viewpoint of the residents' welfare in each city. Of particular interest are the conditions under which the consumers' surplus measure is exactly equal to the area to the left of the relevant transportation demand curve

Date: 1992
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