Trade, factor mobility, and income distribution in a regional model with compensating wage differentials

Article Abstract:

An analysis of an extension of international trade theories to regional economics is presented. The analysis assumes unrestricted production variables which consume non-traded non-traded products in areas where they are employed. Factormobility may not set equilibrium conditions since wage differentials may compensate for non-traded items. Results show that an expenditure function describing mobile variables can generate basis for factor price equalization.

Analysis, Economic aspects, International trade, Wage payment systems, Income distribution, Pay structure

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A model of interaction between regional financial markets and regional growth

Article Abstract:

A model describing the relationship between regional financial markets and regional income is presented and analyzed. The model extends earlier versions of such markets and a Keynesian-based regional income framework. The new model is developed on interest-rate-induced regional expenditure functions and on credit-induced expenditures. It is shown that the credit-induced version betterdescribes regional developments.

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