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Preference matching, income, and population distribution in urban and adjacent rural regions

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  • Amitrajeet A. Batabyal
  • Hamid Beladi

Abstract

We analyse the impact of preference matching and income on the distribution of the population in an aggregate economy of an urban and an adjacent rural region. It costs more (less) to live in the urban (rural) region. Individuals choose to live either in the urban or in the rural region. They differ in their incomes. These incomes are uniformly distributed on the unit interval. Our analysis leads to four results. First, when the cost differential parameter satisfies a condition, both regions are occupied in the equilibrium. Second, when this parametric condition holds, in any equilibrium in which the mean income of individuals varies across the two regions, every resident of the rural region has a lower income than every resident of the urban region. Third, there exists an income threshold and all individuals with higher (lower) incomes choose to live in the urban (rural) region. Finally, in the equilibrium with income sorting, it is possible to make everyone better off by slightly modifying their residential choices. Se analiza el impacto del emparejamiento de preferencias y de los ingresos en la distribución de la población en una economía agregada de una región urbana y de una región rural adyacente. Cuesta más vivir en la región urbana y menos en la rural. Los individuos eligen vivir en la región urbana o en la rural. Difieren en sus ingresos. Estos ingresos se distribuyen uniformemente en el intervalo de unidades. El análisis conduce a cuatro resultados. Primero, cuando el parámetro diferencial de costos satisface una condición, ambas regiones están ocupadas en el equilibrio. En segundo lugar, cuando esta condición paramétrica se mantiene, en cualquier equilibrio en el que la renta media de los individuos varía entre las dos regiones, cada residente de la región rural tiene una renta inferior a la de cada residente de la región urbana. En tercer lugar, existe un umbral de ingresos y todas las personas con ingresos más altos eligen vivir en la región urbana y aquellas con ingresos más bajos en la rural. Por último, en el equilibrio con la clasificación por ingresos, es posible mejorar la situación de cada persona modificando ligeramente sus opciones residenciales. 本稿では、都市部とその周辺の農村地域を合わせた経済域における人口分布に対する選好マッチングおよび所得の影響を分析する。都市部での生活は出費が多く、農村部での出費が少ない。人は都市部に居住するか農村部に居住するかのどちらかを選択する。所得は個人によって異なる。所得はユニットインターバルで均一に分布している。分析から4つの結果が得られた。1)費用別のパラメーターが条件を満たす場合、都市部と農村部のいずれにおいても居住人口は均衡している。2)このパラメトリックな条件が持続する場合、個人所得の平均が2つの地域全体で異なる均衡において、農村部のすべての居住者の所得は、都市部のすべての居住者よりも低くなる。3)所得の境界が存在しており、高所得者は都市部に居住することを選択し、低所得者は農村部に居住することを選択する。4)所得額による分類で均衡する場合、居住地の選択をわずかに調整することによりすべての人口の経済状況を改善することができる。

Suggested Citation

  • Amitrajeet A. Batabyal & Hamid Beladi, 2019. "Preference matching, income, and population distribution in urban and adjacent rural regions," Papers in Regional Science, Wiley Blackwell, vol. 98(5), pages 2201-2208, October.
  • Handle: RePEc:bla:presci:v:98:y:2019:i:5:p:2201-2208
    DOI: 10.1111/pirs.12436
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    2. Reza Oladi & John Gilbert, 2011. "Monopolistic Competition and North–South Trade," Review of International Economics, Wiley Blackwell, vol. 19(3), pages 459-474, August.
    3. Amitrajeet A. BATABYAL, 2018. "Note On Local Public Good Induced Spillovers Between A Leading And A Lagging Region," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 11-16, July.
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    6. Daisaku Yamamoto, 2008. "Scales of regional income disparities in the USA, 1955-2003," Journal of Economic Geography, Oxford University Press, vol. 8(1), pages 79-103, January.
    7. Karima Kourtit & Peter Nijkamp & Roger R. Stough (ed.), 2015. "The Rise of the City," Books, Edward Elgar Publishing, number 15798.
    8. Batabyal, Amitrajeet A. & Beladi, Hamid, 2015. "Knowledge goods, ordinary goods, and the effects of trade between leading and lagging regions," Research Policy, Elsevier, vol. 44(8), pages 1537-1542.
    9. Neil Ward & David L. Brown, 2009. "Placing the Rural in Regional Development," Regional Studies, Taylor & Francis Journals, vol. 43(10), pages 1237-1244, December.
    10. Batabyal, Amitrajeet & Nijkamp, Peter, 2014. "Some properties of the technology gap between leading and lagging regions," MPRA Paper 71596, University Library of Munich, Germany.
    11. Kimhi, Ayal & Sarit Menahem-Carmi, 2017. "Does rural household income depend on neighboring urban centers?Evidence from Israel," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 13(1), pages 26-35, JUNE.
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    2. Amitrajeet A. Batabyal & Seung Jick Yoo, 2020. "A theoretical analysis of preference matching by tourists and destination choice," Asia-Pacific Journal of Regional Science, Springer, vol. 4(3), pages 809-820, October.
    3. Ren Lu & Qing Song & Ting Xia & Daguo Lv & Torger Reve & Ze Jian, 2021. "Unpacking the U‐shaped relationship between related variety and firm sales: Evidence from Japan," Papers in Regional Science, Wiley Blackwell, vol. 100(5), pages 1136-1157, October.
    4. Nguyen, Xuan & Chao, Chi-Chur, 2021. "Revenge consumption, product quality, and welfare," International Review of Economics & Finance, Elsevier, vol. 76(C), pages 495-501.
    5. Jiamin Liu & Xiaoyu Ma & Wenli Jia & Sisi Zhang, 2022. "Can New-Type Urbanization Construction Narrow the Urban–Rural Income Gap? Evidence from China," Sustainability, MDPI, vol. 14(22), pages 1-25, November.
    6. Guimin Zhang & Xiangling Wu & Ke Wang, 2022. "Research on the Impact and Mechanism of Internet Use on the Poverty Vulnerability of Farmers in China," Sustainability, MDPI, vol. 14(9), pages 1-16, April.

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    More about this item

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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