Water-Price Differential and the Efficient Population Size and Urban-Rural Composition of a Distant, Large, Arid Island
A low population density and a large distance from civilization centres present a high degree of isolation to the island's residents. Immigration can reduce the mental and material costs of isolation for the veteran residents, but at the expense of cultural and national cohesion and social harmony; and, in the case of an arid land, also at the expense of the amount and price of water allocated to agriculture. An expected-net-benefit-maximisation model for determining population size and its equilibrium urban-rural composition is developed. It is simulated for various agricultural water prices. The simulation results illustrate the central role of the effect of immigration on the urban unemployment rate in the determination of the island's efficient population size.
|Date of creation:||2004|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +612 4221-3659
Fax: +612 4221-3725
Web page: http://business.uow.edu.au/econ/index.html
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Theodore W. Schultz, 1962. "Reflections on Investment in Man," Journal of Political Economy, University of Chicago Press, vol. 70, pages 1.
- Harry Clarke, 2003. "Should Australia Target Its Population Size?," Economic Papers, The Economic Society of Australia, vol. 22(1), pages 24-35, 03.
When requesting a correction, please mention this item's handle: RePEc:uow:depec1:wp04-17. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Siminski)
If references are entirely missing, you can add them using this form.