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Spatial migration

  • Carmen Camacho

    ()

    (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne)

We develop a model economy adapting Hotelling's migration law to make individuals react to the gradient of their indirect utility. In a first version, individuals respond uniquely to utility differences. In a second phase, we insert our migration law as a dynamic constraint in a spatial model of economic growth in which a policy maker maximizes overall welfare. In both cases we prove the existence of a unique solution under certain assumptions and for each initial distribution of human capital. We illustrate some extremely interesting properties of the economy and the associated population dynamics through numerical simulations. In the decentralized case in which a region enjoys a temporal technological advantage, an agglomeration in human capital emerges in the central area, which does not coincide with the technologically advanced area. In the complete model, initial differences in human capital can trigger everlasting inequalities in physical capital.

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Paper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number halshs-00801109.

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Date of creation: Feb 2013
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Handle: RePEc:hal:cesptp:halshs-00801109
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  1. Boucekkine, Raouf & Camacho, Carmen & Zou, Benteng, 2009. "Bridging The Gap Between Growth Theory And The New Economic Geography: The Spatial Ramsey Model," Macroeconomic Dynamics, Cambridge University Press, vol. 13(01), pages 20-45, February.
  2. Carmen Camacho & Benteng Zou & Maya Briani, 2005. "On the dynamics of capital accumulation across space," Working Papers 376, Bielefeld University, Center for Mathematical Economics.
  3. Puu, Tonu, 1989. "On Growth and Dispersal of Populations," The Annals of Regional Science, Springer, vol. 23(3), pages 171-86.
  4. Javier Alvarez & Pascal Mossay, 2006. "Estimation of a continuous spatio-temporal population model," Journal of Geographical Systems, Springer, vol. 8(3), pages 307-316, September.
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