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A multi-region economic growth model with migration, housing and regional amenity

  • Wei Bin Zhang

    ()

    (Ritsumeikan Asia Pacific University, Jumonjibaru, Beppu-Shi, Oita-ken, 874-8577)

The purpose of this paper is to examine dynamic interactions among interregional migration, economic development and environmental change on microeconomic foundation. The model describes multi-regional economic growth with heterogeneous households, and capital accumulation under assumptions of profit maximization, utility maximization, and perfect competition. First, we simulate the national economy of a three-regional economy with homogeneous population. It is demonstrated that when the production functions take on the Cobb-Douglas form, the dynamics has a unique equilibrium. Then we carry out comparative statics analysis with regard to regions’ productivity and amenity levels, the propensity to save, and the population. The simulation results show that any change in any region’s amenity or productivity may improve or worsen some regions with regard to some variables. We will also examine the dynamics of a two-region two-group economy.

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Article provided by Alexandru Ioan Cuza University, Faculty of Economics and Business Administration in its journal Analele Stiintifice ale Universitatii "Alexandru Ioan Cuza" din Iasi.

Volume (Year): 55 (2008)
Issue (Month): (November)
Pages: 322-350

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Handle: RePEc:aic:journl:y:2008:v:55:p:322-350
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  1. Glaeser, Edward L & Mare, David C, 2001. "Cities and Skills," Journal of Labor Economics, University of Chicago Press, vol. 19(2), pages 316-42, April.
  2. Ianchovichina, Elena & Robert McDougall, 2000. "Theoretical Structure of Dynamic GTAP," GTAP Technical Papers 480, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
  3. McDougall, Robert, 2000. "A New Regional Household Demand System for GTAP," GTAP Working Papers 404, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
  4. Gerhard Sorger, 2003. "On the Multi-Country Version of the Solow-Swan Model," The Japanese Economic Review, Japanese Economic Association, vol. 54(2), pages 146-164.
  5. Ruffin, Roy J, 1979. "Growth and the Long-Run Theory of International Capital Movements," American Economic Review, American Economic Association, vol. 69(5), pages 832-42, December.
  6. Blomquist, Glenn C & Berger, Mark C & Hoehn, John P, 1988. "New Estimates of Quality of Life in Urban Areas," American Economic Review, American Economic Association, vol. 78(1), pages 89-107, March.
  7. Combes, Pierre-Philippe & Duranton, Gilles & Gobillon, Laurent, 2004. "Spatial Wage Disparities: Sorting Matters!," CEPR Discussion Papers 4240, C.E.P.R. Discussion Papers.
  8. Wei-Bin Zhang, 2007. "A multiregion model with capital accumulation and endogenous amenities," Environment and Planning A, Pion Ltd, London, vol. 39(9), pages 2248-2270, September.
  9. Gilles Duranton & Vassilis Monastiriotis, 2002. "Mind the Gaps: The Evolution of Regional Earnings Inequalities in the U.K., 1982-1997," Journal of Regional Science, Wiley Blackwell, vol. 42(2), pages 219-256.
  10. Roy, John R & Johansson, Borje, 1993. "A Model of Trade Flows in Differentiated Goods," The Annals of Regional Science, Springer, vol. 27(2), pages 95-115.
  11. Kanemoto, Yoshitsugu, 1980. "Theories of urban externalities," MPRA Paper 24614, University Library of Munich, Germany.
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