NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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Takaaki Takahashi Dr.

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Institutional Affiliation: University of Tokyo

NBER Working Papers and Publications

October 1993Self-Defeating Regional Concentration
with Kiminori Matsuyama: w4484
We present a simple model of a two-region economy in which undesirable concentration may occur. With freedom to choose where to live, individuals in this economy concentrate into one region in their pursuit of better life, and end up becoming worse off. We characterize the conditions under which such self-defeating concentration occurs in terms of a few key parameters, such as economies of scale in nontradeable service sectors, regional differences in labor productivity in tradeable goods sectors, and substitutability of tradeable goods in consumption.

Published: Matsuyama, Kiminori & Takahashi, Takaaki, 1998. "Self-Defeating Regional Concentration," Review of Economic Studies, Blackwell Publishing, vol. 65(2), pages 211-34, April. citation courtesy of

 
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