Increasing political returns and rural-urban migrations

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Sánchez, Gabriel. Increasing political returns and rural-urban migrations. 1998
To cite or link this document: Sánchez, Gabriel
dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa 1998-08-01
dc.description.abstract This paper analyzes the different equilibria in rural-urban migrations and political redistribution that result from the interaction between increasing political returns, the distribution of land, and credit market imperfections. Governments that put a special weight on the welfare of urban workers when setting agricultural prices generate a political externality in the urban sector, giving peasants an incentive to migrate in anticipation of policy determination. If credit markets are imperfect, land ownership confers higher productivity to peasants, who require large price changes to migrate. In this context, land inequality would lead to large migrations and to large policy change, while an egalitarian land distribution would lead to no migration and to a small policy change. This interaction sheds light on the contrasting experience of Latin America and East Asia at the outset of World War II.
dc.language.iso eng
dc.relation.ispartofseries Economics and Business Working Papers Series; 332
dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
dc.title Increasing political returns and rural-urban migrations
dc.type info:eu-repo/semantics/workingPaper 2016-06-04T02:50:24Z
dc.subject.keyword Macroeconomics and International Economics
dc.subject.keyword endogenous trade policies
dc.subject.keyword political externality
dc.subject.keyword multiple equilibria
dc.subject.keyword land distribution
dc.subject.keyword rural-urban migration
dc.subject.keyword east asia
dc.subject.keyword latin america
dc.rights.accessRights info:eu-repo/semantics/openAccess

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