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A multiregion model with capital accumulation and endogenous amenities

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  • Wei-Bin Zhang

Abstract

The author develops a multiregional growth model with endogenous amenity and capital accumulation for any number of regions. The simulation results demonstrate that the national dynamics have a unique equilibrium. Comparative statics analysis shows that, if environmental improvement occurs in the technologically advanced (less advanced) region, the national output rises (falls). As a region improves its technology, the other two regions’ aggregated output levels fall—not only in relative, but also in absolute, terms. This implies that if any region has a high rate of technological change and the other regions remain technologically stationary, then economic activities will tend to be concentrated in the technologically advancing region. It is also shown that technological differences appear to play only a small role in accounting for spatial wage disparities and endowments.

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  • 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.
  • Handle: RePEc:pio:envira:v:39:y:2007:i:9:p:2248-2270
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    Cited by:

    1. 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.
    2. Brenner Thomas, 2008. "Cluster dynamics and policy implications," Zeitschrift für Wirtschaftsgeographie, De Gruyter, vol. 52(1), pages 146-162, October.

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