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Regional income disparities in an OLG structure

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  • Ryo Itoh

Abstract

This study examines a two-region OLG mode, in which parents educate their children and choose their location freely; that is, the population distribution and each worker’s productivity are determined endogenously. Owing to the setting of both agglomeration economies in wage and agglomeration diseconomies in utility and thereby different consumption patterns between regions, the present model represents a generation of inequality in educational level between regions even when households with equivalent education are given. Incentive for interregional segregation by educational level is also assumed and inequality is persistent in the result. This model demonstrates a development process starting with a low-developed initial state that represents population concentration accompanied with human capital growth and expansion of interregional inequalities. In addition, the effects of policies on long-run equilibria are addressed along with lock-in effects against these policies. Copyright Springer-Verlag 2013

Suggested Citation

  • Ryo Itoh, 2013. "Regional income disparities in an OLG structure," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 50(1), pages 185-202, February.
    • Handle: RePEc:spr:anresc:v:50:y:2013:i:1:p:185-202
    DOI: 10.1007/s00168-011-0489-6
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    Cited by:

    1. Boháčková, Ivana, 2013. "Some Notes to Income Disparity Problems of Agriculture," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 5(4), pages 1-10, December.
    2. Wei-Bin Zhang, 2014. "Multi-regional economic growth with public good and regional fiscal policies in a small-open economy," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 52(2), pages 409-429, March.

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    More about this item

    Keywords

    O15; R11;

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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