Taste Heterogeneity, Labour Mobility and Economic Geography |
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amenity differential amenity level arises assume bell-shaped relationship cannabis Centre for Economic cocaine Consider two symmetric core-periphery structure degree of heterogeneity denoted differentiated product discrete choice theory economic development economic geography Economic Policy Research Email European Union existence factor falling transport costs farmers follows Fujita fully agglomerate Goswell Road Hence heterogeneity µ higher holds implies increasing returns involves full dispersion Jacques-François Thisse Jean Tirole large region located logit London EC1V 7RR low amenities market outcome maximizing nominal wage differential number of firms numéraire Ottaviano parameters partial agglomeration product differentiation Proposition quadratic equation re-dispersion readily verified result returns to scale show that taste spatial distribution spatial equity stable equilibria standard core-periphery model strong dispersion force Subscription sufficiently low symmetric regions symmetry breaking threshold Takatoshi Tabuchi taste heterogeneity Ttrade University of Tokyo variety workers are heterogenous workers are homogenous www.cepr.org zero µ log