Migration when social preferences are ordinal: Steady-state population distribution, and social welfare

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URI: http://hdl.handle.net/10900/76198
Dokumentart: Article
Date: 2017-05-15
Source: University of Tübingen Working Papers in Economics and Finance ; 98
Language: English
Faculty: 6 Wirtschafts- und Sozialwissenschaftliche Fakultät
Department: Wirtschaftwissenschaften
DDC Classifikation: 330 - Economics
Keywords: Sozialhilfe
Other Keywords:
Ordinal preferences
Distaste for low relative income
An ordinal measure of income relative deprivation
Interregional migration
Steady-state spatial distribution
Social Welfare
License: http://tobias-lib.uni-tuebingen.de/doku/lic_ohne_pod.php?la=de http://tobias-lib.uni-tuebingen.de/doku/lic_ohne_pod.php?la=en
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This paper adds three dimensions to the received literature: it models migration when the individuals’ preferences regarding their relative income are ordinal, it works out the resulting spatial steady-state distribution of the individuals, and it shows that the aggregate of the individuals’ migration choices in the spatial steady-state distribution sums up to the social optimum. This finding does not apply when the individuals’ preferences regarding their relative income are cardinal. We highlight the importance of the assumption about the nature of the individuals’ social preferences (whether ordinal or cardinal) to studying and predicting their migration behavior, and to elucidating the consequences of that behavior for social welfare.

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