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A Two Regional Growth Model

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  • Zhang, Wei Bin

Abstract

This article proposes a compact two region economic model with endogenous capital accumulation. Each region is characterized by its preference structure and its immobile resources such as regional amenity and land. The model describes an interaction between capital accumulation, regional distribution of capital and labor, and locational prices over time under perfectly competitive institution. The conditions for the existence of equilibria are provided. The analysis concerns the way in which changes in regional amenity and working efficiency may affect the economic equilibrium structure.

Suggested Citation

Handle: RePEc:eee:paresc:v:77:y:1998:i:2:p:173-188
DOI: 10.1111/j.1435-5597.1998.tb00713.x
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File URL: http://www.sciencedirect.com/science/article/pii/S1056819023015828
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