General Equilibrium Elaboration of the Classical Model of Migration

Hannu Laurila
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Hannu Laurila: School of Management, University of Tampere

No 436, Working Papers from Tampere University, Faculty of Management and Business, Economics

Abstract: The classic type of analysis of inter-regional migration is derived from the traditional trade doctrine, expressed in terms of labour markets. The approach is here given a general equilibrium elaboration by including descriptions of local production functions, IS-LM frameworks and aggregate supply and demand schedules. The comparative static properties of the model are illustrated concerning the mechanism of migration. The effects of capital movements are also studied. A key finding is that interior solutions of spatial resource allocation are not granted in general.

Keywords: real wage equalisation; capital movements; spatial resource allocation (search for similar items in EconPapers)
Pages: 34 pages
Date: 2004-12
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http://urn.fi/urn:isbn:951-44-6227-0 First version, 2004 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:tam:wpaper:0436

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