Self-Defeating Regional Concentration

Kiminori Matsuyama and Takaaki Takahashi ()

No 4484, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We present a simple model of a two-region economy in which undesirable concentration may occur. With freedom to choose where to live, individuals in this economy concentrate into one region in their pursuit of better life, and end up becoming worse off. We characterize the conditions under which such self-defeating concentration occurs in terms of a few key parameters, such as economies of scale in nontradeable service sectors, regional differences in labor productivity in tradeable goods sectors, and substitutability of tradeable goods in consumption.

JEL-codes: F12 O11 (search for similar items in EconPapers)
Date: 1993-10
Note: ITI
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Published as Matsuyama, Kiminori & Takahashi, Takaaki, 1998. "Self-Defeating Regional Concentration," Review of Economic Studies, Blackwell Publishing, vol. 65(2), pages 211-34, April.

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Related works:
Journal Article: Self-Defeating Regional Concentration (1998)
Working Paper: Self-Defeating Regional Concentration (1993)
Working Paper: Self-Defeating Regional Concentration (1993)
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