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General equilibrium spatial models

Author

Listed:
  • Masa K. Naito

    (Department of Economics and Business Administration, Sofia University, 125 Tzarigradsko Chausee blvd. Block 3, Sofia, 1113 Bulgaria)

Abstract

This paper confirms the so called perverse effect of Löschian entry on wages regardless of the form of the labor supply curves. The form of our labor supply after firm entry is not only different from the one before entry, but also sharply different from that found by Kohlhase and Ohta [8]. However, we show that while the Kohlase-Ohta model has a convex labor supply, the Ohta-Asami-Kohlhase model has a concave labor supply as does the extended model presented here. Moreover, we find that the same perverse result is derived from either one of the two contrasting forms of the labor curve assumed, i.e., regardless of the convexity vs. concavity of the labor supply.

Suggested Citation

  • Masa K. Naito, 2001. "General equilibrium spatial models," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 35(3), pages 395-410.
  • Handle: RePEc:spr:anresc:v:35:y:2001:i:3:p:395-410
    Note: Received: May 1999/Accepted: June 2000
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    More about this item

    JEL classification:

    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

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