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General equilibrium spatial models

Masa K. Naito ()
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Masa K. Naito: Department of Economics and Business Administration, Sofia University, 125 Tzarigradsko Chausee blvd. Block 3, Sofia, 1113 Bulgaria

The Annals of Regional Science, 2001, vol. 35, issue 3, 395-410

Abstract: This paper confirms the so called perverse effect of Löschian entry on wages regardless of the form of the labor supply curves. The form of our labor supply after firm entry is not only different from the one before entry, but also sharply different from that found by Kohlhase and Ohta [8]. However, we show that while the Kohlase-Ohta model has a convex labor supply, the Ohta-Asami-Kohlhase model has a concave labor supply as does the extended model presented here. Moreover, we find that the same perverse result is derived from either one of the two contrasting forms of the labor curve assumed, i.e., regardless of the convexity vs. concavity of the labor supply.

JEL-codes: D50 R13 (search for similar items in EconPapers)
Date: 2001-11-16
Note: Received: May 1999/Accepted: June 2000
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