interregionally immobile farm labourers (sector-specific factor). We assume that the unit
labour requirement is one.
Manufacturing is a monopolistically competitive sector producing a variety of
differentiated products with increasing-return-to-scale technology and employs
interregionally mobile workers. We assume the existence of two types of workers in the
manufacturing sector, which differ only in terms of the level of efficiency unit of labour
supplied.
3.1 Consumers ’-worker’ ’ behaviour
All individuals share the same Cobb-Douglas utility function:
U = M μ A1μ (1)
where M is a quantity index of consumption of manufactured goods and A is consumption of
the agricultural good. Therefore μ is the expenditure share of manufactured goods. The
manufacturing aggregate M, is a sub-utility function of a discrete number of varieties defined
by a constant elasticity of substitution function:
1/ρ
σ
σ-1
(2)
7 According to the authors, in the U.S. a worker in the most productive state is two-thirds more productive than a
worker in the least productive state.
More intriguing information
1. Direct observations of the kinetics of migrating T-cells suggest active retention by endothelial cells with continual bidirectional migration2. Innovation Policy and the Economy, Volume 11
3. THE ANDEAN PRICE BAND SYSTEM: EFFECTS ON PRICES, PROTECTION AND PRODUCER WELFARE
4. Luce Irigaray and divine matter
5. Long-Term Capital Movements
6. Pricing American-style Derivatives under the Heston Model Dynamics: A Fast Fourier Transformation in the Geske–Johnson Scheme
7. How does an infant acquire the ability of joint attention?: A Constructive Approach
8. The Role of State Trading Enterprises and Their Impact on Agricultural Development and Economic Growth in Developing Countries
9. Valuing Access to our Public Lands: A Unique Public Good Pricing Experiment
10. Endogenous Determination of FDI Growth and Economic Growth:The OECD Case