Self-Defeating Regional Concentration

Kiminori Matsuyama and Takaaki Takahashi ()

No 1050, Discussion Papers from Northwestern University, Center for Mathematical Studies in Economics and Management Science

Abstract: We present a simple model fo a two-region economy in which undesirable concentration may occur. With reedom to choose where to lifve, 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 substitutabilty of tradeable goods in consumption.

Keywords: Labor Migration; Stability of Population Distribution; Undesirable Regional Concentration; Essentialty in Consumption. (search for similar items in EconPapers)
JEL-codes: F12 O11 R13 (search for similar items in EconPapers)
Date: 1993-06
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Citations: View citations in EconPapers (7)

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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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