Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/221407 
Year of Publication: 
1993
Series/Report no.: 
Discussion Paper No. 1050
Publisher: 
Northwestern University, Kellogg School of Management, Center for Mathematical Studies in Economics and Management Science, Evanston, IL
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.
Subjects: 
Labor Migration
Stability of Population Distribution
Undesirable Regional Concentration
Essentialty in Consumption
JEL: 
F12
O11
R13
Document Type: 
Working Paper

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