IDEAS home Printed from https://ideas.repec.org/a/dse/indecr/v27y1992i1p73-89.html
   My bibliography  Save this article

Market Equilibrium and Social Optimum in a Multi-Regional Economy: The Role of Moving Cost

Author

Listed:
  • M. R. Narayana

    (Institute For Social and Economic Change, Bangalore)

Abstract

A spatial model with local public good is developed for analysing market equilibrium and social optimum under costly migration. The utility cost differentials are shown to exist between regions in equilibrium, and an appropriate federal policy intervention in the form of inter-regional transfers is sought. Comparative static results show that a common federal policy change would have different welfare implications for non-movers, movers and stayers in equilibrium. These results provide economic justification for disaggregate approach to the estimation of the impact of federal transfers on inter-regional population allocation. They also support alternative federal policy intervention, such as, efficiency-cum-equity, or pure income redistributive, policy and imply that the formulation of efficient allocation problem in the Rawlsian and Benthamite framework is invalid. An alternative social optimum formulation yields an efficiency condition which holds for all groups of labourers in equilibrium.

Suggested Citation

  • M. R. Narayana, 1992. "Market Equilibrium and Social Optimum in a Multi-Regional Economy: The Role of Moving Cost," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 27(1), pages 73-89, July.
    • Handle: RePEc:dse:indecr:v:27:y:1992:i:1:p:73-89
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    JEL classification:

    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:dse:indecr:v:27:y:1992:i:1:p:73-89. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Pami Dua (email available below). General contact details of provider: https://edirc.repec.org/data/deudein.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.