A Model of Growth and Migration
This paper contains a model with which the desirability of persistent urbanization can be examined. There are two regions: city and countryside. Joint restrictions on the technologies in each region and on preferences over the goods produced in each region are the driving force of migration. In equilibrium there is persistent migration from the countryside to the city. Even though there are externalities in production, the competitive equilibrium is Pareto optimal.
Volume (Year): 25 (1992)
Issue (Month): 4 (November)
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