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

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  • Wei Bin Zhang

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

Abstract

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.

Suggested Citation

  • Wei Bin Zhang, 2008. "A multi-region economic growth model with migration, housing and regional amenity," Analele Stiintifice ale Universitatii "Alexandru Ioan Cuza" din Iasi - Stiinte Economice, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 55, pages 322-350, November.
  • Handle: RePEc:aic:journl:y:2008:v:55:p:322-350
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    References listed on IDEAS

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    1. Wei-Bin Zhang, 2007. "A Multiregion Model with Capital Accumulation and Endogenous Amenities," Environment and Planning A, , vol. 39(9), pages 2248-2270, September.
    2. 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.
    3. Fujita,Masahisa, 1991. "Urban Economic Theory," Cambridge Books, Cambridge University Press, number 9780521396455.
    4. 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.
    5. Combes, Pierre-Philippe & Duranton, Gilles & Gobillon, Laurent, 2008. "Spatial wage disparities: Sorting matters!," Journal of Urban Economics, Elsevier, vol. 63(2), pages 723-742, March.
    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. Kanemoto, Yoshitsugu, 1980. "Theories of urban externalities," MPRA Paper 24614, University Library of Munich, Germany.
    8. Ruffin, Roy J, 1979. "Growth and the Long-Run Theory of International Capital Movements," American Economic Review, American Economic Association, vol. 69(5), pages 832-842, December.
    9. Roy, John R & Johansson, Borje, 1993. "A Model of Trade Flows in Differentiated Goods," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 27(2), pages 95-115.
    10. H. Oniki & H. Uzawa, 1965. "Patterns of Trade and Investment in a Dynamic Model of International Trade," Review of Economic Studies, Oxford University Press, vol. 32(1), pages 15-37.
    11. Ianchovichina,Elena & Walmsley,Terrie L. (ed.), 2012. "Dynamic Modeling and Applications for Global Economic Analysis," Cambridge Books, Cambridge University Press, number 9781107011694.
    12. 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.
    13. Glaeser, Edward L & Mare, David C, 2001. "Cities and Skills," Journal of Labor Economics, University of Chicago Press, vol. 19(2), pages 316-342, April.
    14. 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.
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    Cited by:

    1. Wei-Bin Zhang, 2011. "Global Economic Growth, Elastic Labor Supply, Knowledge Utilization And Creation With Learning-By-Doing," Analele Stiintifice ale Universitatii "Alexandru Ioan Cuza" din Iasi - Stiinte Economice, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 58, pages 497-512, november.
    2. Wei-Bin Zhang, 2009. "A small open interregional monetary spatial economic growth with the MIU approach," Analele Stiintifice ale Universitatii "Alexandru Ioan Cuza" din Iasi - Stiinte Economice, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 56, pages 210-234, November.

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