Firm and household mobility in the presence of variations in regional characteristics
Date
2002Résumé
This paper examines the behavior of households and firms in the presence of variations in regional characteristics that affect their location decisions. It then determines relevant equilibrium conditions. Based on the implications of these equilibrium conditions, firm and household locations can be explained either by the dominance of firms or by the dominance of households. The results of this theory are applied to the case of 17 Arab countries.