Citation

Discussion Paper Details

Please find the details for DP2185 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: Integration, Agglomeration and the Political Economics of Factor Mobility

Author(s): Gianmarco Ottaviano and Jacques-François Thisse

Publication Date: July 1999

Keyword(s): Agglomeration, Integration, Mobility and Political Economy

Programme Area(s): International Trade and Regional Economics and Public Economics

Abstract: This paper tackles the issue of the optimality of agglomeration in a two-region economy with skilled/mobile and unskilled/immobile workers. The market leads to the optimal outcome when transport costs are high or low. However, for intermediate values, it yields agglomeration whereas dispersion is socially desirable. We show that competitive lobbying on factor mobility by the two groups of workers sustains the second best optimum.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=2185

Bibliographic Reference

Ottaviano, G and Thisse, J. 1999. 'Integration, Agglomeration and the Political Economics of Factor Mobility'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=2185