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Estimating Interregional Utility Differentials

  • Kentaro Nakajima
  • Takatoshi Tabuchi

The examination of long-term Japanese data on interregional migration revealed three stylized facts of migration behavior. Based on the facts, we formulated an operational model and estimated interregional utility differentials. We found that the interregional utility differentials have been converging until the late 1970s. We showed that the utility estimates are highly correlated with per capita real income. We also applied the model to interregional migration in the United States and Canada as well as the interindustry movement in Japan and confirmed the model's validity.

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Article provided by Wiley Blackwell in its journal Journal of Regional Science.

Volume (Year): 51 (2011)
Issue (Month): 1 (02)
Pages: 31-46

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Handle: RePEc:bla:jregsc:v:51:y:2011:i:1:p:31-46
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  1. Matthieu Crozet, 2004. "Do migrants follow market potentials? An estimation of a new economic geography model," Journal of Economic Geography, Oxford University Press, vol. 4(4), pages 439-458, August.
  2. Paul Krugman, 1990. "Increasing Returns and Economic Geography," NBER Working Papers 3275, National Bureau of Economic Research, Inc.
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  5. Brian Cushing & Jacques Poot, 2003. "Crossing boundaries and borders: Regional science advances in migration modelling," Economics of Governance, Springer, vol. 83(1), pages 317-338, October.
  6. Jordi Pons & Elisenda Paluzie & Javier Silvestre & Daniel A. Tirado, 2007. "Testing The New Economic Geography: Migrations And Industrial Agglomerations In Spain," Journal of Regional Science, Wiley Blackwell, vol. 47(2), pages 289-313, 05.
  7. Tabuchi, Takatoshi & Thisse, Jacques-François, 2001. "Taste Heterogeneity, Labour Mobility and Economic Geography," CEPR Discussion Papers 3114, C.E.P.R. Discussion Papers.
  8. Andrei Rogers & James Raymer & K. Bruce Newbold, 2003. "Reconciling and translating migration data collected over time intervals of differing widths," The Annals of Regional Science, Springer, vol. 37(4), pages 581-601, December.
  9. Grubel, Herbert G & Lloyd, P J, 1971. "The Empirical Measurement of Intra- Industry Trade," The Economic Record, The Economic Society of Australia, vol. 47(120), pages 494-517, December.
  10. Cragg, M. & Kahn, M., 1995. "New Estimates on Climate Demand: Evidence from Location Choice," Discussion Papers 1995_34, Columbia University, Department of Economics.
  11. Kahn Matthew E., 1995. "A Revealed Preference Approach to Ranking City Quality of Life," Journal of Urban Economics, Elsevier, vol. 38(2), pages 221-235, September.
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