Do Migrants Believe in Market Potential?
New economic geography models predict migration flows from peripheral regions toward central ones. Agglomeration occurs in these models because firms, which tend to locate in large demand regions, and workers, who look for high real wages, are driven by the same force defined by the market potential function. As in Hanson , we estimate this function and thereby all the parameters of the standard economic geography model.
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|Date of creation:||2000|
|Date of revision:|
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