A theoretical approach incorporating equilibrium and disequilibrium migration models

The primary contribution of the study is the development of an alternative taxonomy in analyzing migration. Migration has been studied from the perspective of either a disequilibrium or an equilibrium hypothesis. The disequilibrium hypothesis interprets regional economic differentials as an indication of a disequilibrium in labor and/or housing markets. Migration provides the means by which these regional economic differentials are eliminated.;A two-region spatial system is developed. Each region is defined by a productive sector, a group of identical consumers, and endowed with a fixed housing stock and a "quality of life." Two composite goods are produced (one location-specific and the other nonlocation-specific). Production utilizes indices of location-specific technology and environmental amenities (location-specific goods with characteristics of public goods). Households are employed by these two firms. Households receive utility through the consumption of the two composite goods and environmental amenities through housing. Housing is defined as a hedonic index. Through the optimization decisions, regional equilibrium prices for the region are derived.;When the two regions are identical, equilibrium is defined by the absence of regional economic differentials. Otherwise, regional differences in endowments, technologies of firms, and preferences of households indicates an equilibrium defined by the existence of regional economic differentials. Without explicit consideration of regional endowments, technologies, and preferences, the rationing or compensatory nature of regional economic differentials cannot be ascertained.;Migration is a response to relative price changes. As predicted by the disequilibrium hypothesis, households will migrate for economic gain (a higher wage or lower rent) if regions do not vary in the "quality of life" and households do not have a preference for location-specific goods. As predicted by the equilibrium hypothesis, households will migrate if they have a preference for location-specific goods. Households will migrate into high rent regions (reflecting a "willingness to pay") in order to receive this higher "quality of life.";The equilibrium hypothesis perceives the existence of regional economic differentials as being consistent with equilibrium. Regions vary in the "quality of life" and regional economic differentials are interpreted as compensating differentials. Households migrate in order to receive a different "quality of life" (migration is a derived demand for location-specific goods).