Regional Intergration and Migration: An Economic Geography Model with Hetergenous Labour Force



Рг =


Y.

βw*


(16)


Relative prices must then be:

(17)

Free entry drives profit to zero, and the optimal output level is the same for each firm in any

region:

*

x*


α (σ -1)
β


(18)


the associated equilibrium labour input is also constant and given by:

l* = α + βxi = α + α (σ -1) = ασ

(19)


Full employment of the labour force allow us to determine the number of manufacturing

varieties in equilibrium13:

ni = Li
i       у*

li


Li

ασ


(20)


13 Since each variety is produced in one location by a single firm, ni represents both the number of varieties and
the number of firms in region
i.

17



More intriguing information

1. The name is absent
2. The quick and the dead: when reaction beats intention
3. Food Prices and Overweight Patterns in Italy
4. The name is absent
5. A Pure Test for the Elasticity of Yield Spreads
6. Plasmid-Encoded Multidrug Resistance of Salmonella typhi and some Enteric Bacteria in and around Kolkata, India: A Preliminary Study
7. Healthy state, worried workers: North Carolina in the world economy
8. Sector Switching: An Unexplored Dimension of Firm Dynamics in Developing Countries
9. PRIORITIES IN THE CHANGING WORLD OF AGRICULTURE
10. The name is absent