{"title":"A footloose entrepreneur model with productivity heterogeneity in two regions","authors":"Po-Hao Lu, Jyh-Fa Tsai","doi":"10.1111/1467-8454.12370","DOIUrl":null,"url":null,"abstract":"<p>This article introduces the productivity heterogeneity of Melitz, M. J. (2003). <i>Econometrica</i>, 71(6), 1695–1725 into the footloose entrepreneur model of Forslid, R., and Ottaviano, G. I. (2003). <i>Journal of Economic Geography</i>, 3(3), 229–240 to explore the industrial spatial distribution between two regions. We suggest a negative relationship between the shape parameter of the Pareto distribution and the share of skilled workers in a region. It enhances the escape competition effect to avoid agglomeration when the share of skilled workers in a region increases to generate intensified competition. This effect allows the equal distribution outcome to be sustained for a larger range of transport costs.</p>","PeriodicalId":46169,"journal":{"name":"Australian Economic Papers","volume":"64 1","pages":"121-138"},"PeriodicalIF":1.7000,"publicationDate":"2024-07-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Australian Economic Papers","FirstCategoryId":"96","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1111/1467-8454.12370","RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
This article introduces the productivity heterogeneity of Melitz, M. J. (2003). Econometrica, 71(6), 1695–1725 into the footloose entrepreneur model of Forslid, R., and Ottaviano, G. I. (2003). Journal of Economic Geography, 3(3), 229–240 to explore the industrial spatial distribution between two regions. We suggest a negative relationship between the shape parameter of the Pareto distribution and the share of skilled workers in a region. It enhances the escape competition effect to avoid agglomeration when the share of skilled workers in a region increases to generate intensified competition. This effect allows the equal distribution outcome to be sustained for a larger range of transport costs.
本文将 Melitz, M. J. (2003) 的生产率异质性引入 Forslid, R. 和 Ottaviano, G. I. (2003) 的脚步松散型企业家模型。Econometrica, 71(6), 1695-1725 into the footloose entrepreneur model of Forslid, R., and Ottaviano, G. I. (2003).经济地理学报》，3(3)，229-240。我们发现，帕累托分布的形状参数与一个地区技术工人的比例之间存在负相关关系。当一个地区的技术工人所占份额增加以产生强化竞争时，它会增强逃避竞争效应，从而避免集聚。这种效应使平等分布结果在更大的运输成本范围内得以维持。
期刊介绍：
Australian Economic Papers publishes innovative and thought provoking contributions that extend the frontiers of the subject, written by leading international economists in theoretical, empirical and policy economics. Australian Economic Papers is a forum for debate between theorists, econometricians and policy analysts and covers an exceptionally wide range of topics on all the major fields of economics as well as: theoretical and empirical industrial organisation, theoretical and empirical labour economics and, macro and micro policy analysis.
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