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Spatial migration

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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File URL: ftp://mse.univ-paris1.fr/pub/mse/CES2013/13017.pdf
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Paper provided by Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne in its series Documents de travail du Centre d'Economie de la Sorbonne with number 13017.

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Length: 20 pages
Date of creation: Feb 2013
Date of revision:
Handle: RePEc:mse:cesdoc:13017
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  1. 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.
  2. Raouf Boucekkine & C. Camacho & B. Zou, 2007. "Bridging the gap between growth theory and the new economic geography: The spatial Ramsey model," Working Papers 2007_27, Business School - Economics, University of Glasgow.
  3. Camacho, Carmen & Zou, Benteng & Briani, Maya, 2008. "On the dynamics of capital accumulation across space," European Journal of Operational Research, Elsevier, vol. 186(2), pages 451-465, April.
  4. Puu, Tonu, 1989. "On Growth and Dispersal of Populations," The Annals of Regional Science, Springer, vol. 23(3), pages 171-86.
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