Demand fluctuation, urban workers and welfare: An extension of the Harris and Todaro model

Research output: Contribution to journalArticle

Abstract

The present paper is an attempt to construct an extended Harris-Todaro Modelan equilibrium model that incorporates a stochastic fluctuation. Based on this stochastic dynamic Harris-Todaro Model, we examined how an increase in the demand fluctuation and the ratio of less productive producers effects migration and welfare. The results revealed that an increase in uncertainty of demand and a decrease in the ratio of less productive producers enhance both the growth rate and variance of the urban employees as well as welfare.

Original languageEnglish
Pages (from-to)205-213
Number of pages9
JournalStudies in Regional Science
Volume38
Issue number1
DOIs
Publication statusPublished - 2008

Fingerprint

fluctuation
producer
welfare
worker
demand
equilibrium model
employee
uncertainty
migration
effect

Keywords

  • Dynamic programming
  • Harris and Todaro model
  • Stochastic economy
  • Urban workers
  • Welfare

ASJC Scopus subject areas

  • Social Sciences(all)
  • Environmental Science(all)

Cite this

Demand fluctuation, urban workers and welfare : An extension of the Harris and Todaro model. / Fujita, Yasunori.

In: Studies in Regional Science, Vol. 38, No. 1, 2008, p. 205-213.

Research output: Contribution to journalArticle

@article{3dfb17954b7b4123ac9fda0c5efe76a6,
title = "Demand fluctuation, urban workers and welfare: An extension of the Harris and Todaro model",
abstract = "The present paper is an attempt to construct an extended Harris-Todaro Modelan equilibrium model that incorporates a stochastic fluctuation. Based on this stochastic dynamic Harris-Todaro Model, we examined how an increase in the demand fluctuation and the ratio of less productive producers effects migration and welfare. The results revealed that an increase in uncertainty of demand and a decrease in the ratio of less productive producers enhance both the growth rate and variance of the urban employees as well as welfare.",
keywords = "Dynamic programming, Harris and Todaro model, Stochastic economy, Urban workers, Welfare",
author = "Yasunori Fujita",
year = "2008",
doi = "10.2457/srs.38.205",
language = "English",
volume = "38",
pages = "205--213",
journal = "Studies in Regional Science",
issn = "0287-6256",
publisher = "The Japan Section of the Regional Science Association International",
number = "1",

}

TY - JOUR

T1 - Demand fluctuation, urban workers and welfare

T2 - An extension of the Harris and Todaro model

AU - Fujita, Yasunori

PY - 2008

Y1 - 2008

N2 - The present paper is an attempt to construct an extended Harris-Todaro Modelan equilibrium model that incorporates a stochastic fluctuation. Based on this stochastic dynamic Harris-Todaro Model, we examined how an increase in the demand fluctuation and the ratio of less productive producers effects migration and welfare. The results revealed that an increase in uncertainty of demand and a decrease in the ratio of less productive producers enhance both the growth rate and variance of the urban employees as well as welfare.

AB - The present paper is an attempt to construct an extended Harris-Todaro Modelan equilibrium model that incorporates a stochastic fluctuation. Based on this stochastic dynamic Harris-Todaro Model, we examined how an increase in the demand fluctuation and the ratio of less productive producers effects migration and welfare. The results revealed that an increase in uncertainty of demand and a decrease in the ratio of less productive producers enhance both the growth rate and variance of the urban employees as well as welfare.

KW - Dynamic programming

KW - Harris and Todaro model

KW - Stochastic economy

KW - Urban workers

KW - Welfare

UR - http://www.scopus.com/inward/record.url?scp=84870183124&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84870183124&partnerID=8YFLogxK

U2 - 10.2457/srs.38.205

DO - 10.2457/srs.38.205

M3 - Article

AN - SCOPUS:84870183124

VL - 38

SP - 205

EP - 213

JO - Studies in Regional Science

JF - Studies in Regional Science

SN - 0287-6256

IS - 1

ER -