Optimal environmental and industrial policies and imperfect agglomeration effects

摘要: This paper examines a simple general equilibrium model that considers problems related to agglomeration, technology, and the environment. First, it is shown manufactured goods sector converts from classical technology with constant returns scale modern increasing as regional population increases. The optimal pollution level might be an inverted-U shape respect if environmental policy adopted. Second, of conversion not attained in market economy. labour devoted economy too small. So, we derive subsidy rates make resource allocation optimum. Third, consider migration using two-region model. One region becomes large city other rural area total large. industrial tends extend difference between areas. On hand, small, symmetric point will stable equilibrium.