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Do Migrants React to Infrastructure Difference between Urban and Rural Areas?:Development and Application of an Extended Harris-Todaro Model

  • Komei Sasaki

    ()

  • Ismail Issah

    ()

  • Tariq Khan

    ()

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    Developing an extended model of the basic Harris-Todaro model of rural-urban migration, we analyze the effects of infrastructure availability together with the time-tested income effects whilst accommodating government behaviour through the provision and financing of infrastructure. Both the theoretical and empirical analyses confirm the assertion that infrastructure presence can be a force to reckon with as far as migration decisions are concerned. Comparison with the basic Harris-Todaro model also reveals that while the Todaro paradox is absent in the basic model, it can be present in the extended model. Keywords: Rural-urban migration, Infrastructure effects, Income difference, Equilibrium utility, Todaro-paradox. JEL classification: O17, O18, R23

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    Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa04p26.

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    Date of creation: Aug 2004
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    Handle: RePEc:wiw:wiwrsa:ersa04p26
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    1. Thomas Krichel & Paul Levine, 1997. "The Welfare Economics of Rural to Urban Migration: The Harris-Todaro Model Revisited," School of Economics Discussion Papers 9702, School of Economics, University of Surrey.
    2. Goldsmith, Peter D. & Gunjal, Kisan & Ndarishikanye, Barnabe, 2004. "Rural-urban migration and agricultural productivity: the case of Senegal," Agricultural Economics, Blackwell, vol. 31(1), pages 33-45, July.
    3. Brueckner, Jan K. & Zenou, Yves, 1999. "Harris-Todaro models with a land market," Regional Science and Urban Economics, Elsevier, vol. 29(3), pages 317-339, May.
    4. Agesa, Richard U, 2001. "Migration and the Urban to Rural Earnings Difference: A Sample Selection Approach," Economic Development and Cultural Change, University of Chicago Press, vol. 49(4), pages 847-65, July.
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