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15 avril 2024
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Economics - Theoretical EconomicsSujets proches
Trade Commercial trade Foreign trade Pattern Model Social inequality Social equality Inequality Egalitarianism Economic theory Political economy Trade TradeCiter ce document
José M. Gaspar, « A note on heterogeneity, trade integration and spatial inequality », arXiv - économie
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Résumé
We study the impact of economic integration on spatial development in a model where all consumers are inter-regionally mobile and have heterogeneous preferences regarding their residential location choices. This heterogeneity is the unique dispersion force in the model. We show that, under reasonable values for the elasticity of substitution among varieties of consumption goods, a higher trade integration always promotes more symmetric patterns, irrespective of the functional form of the dispersion force. We also show that an increase in the degree of heterogeneity in preferences for location leads to less spatial inequality.