General Equilibrium Elaboration of the Classical Model of Migration

Abstract

The classic type of analysis of inter-regional migration is derived from the traditional trade doctrine, expressed in terms of labour markets. The approach is here given a general equilibrium elaboration by including descriptions of local production functions, IS-LM frameworks and aggregate supply and demand schedules. The comparative static properties of the model are illustrated concerning the mechanism of migration. The effects of capital movements are also studied. A key finding is that interior solutions of spatial resource allocation are not granted in general.