Abstract
Sen's classic work on the choice of capital intensity of investment is generalized in the light of new theoretical developments and empirical findings concerning rural-to-urban migration in LDCs. This is done by explicitly incorporating a migration function into the basic choice model. Revised conditions for maximization of surplus are derived and compared with Sen's original condition. Some justification for the particular migration function used in the presence of risk- aversion is suggested.
| Original language | English |
|---|---|
| Pages (from-to) | 31-41 |
| Number of pages | 11 |
| Journal | Journal of Development Economics |
| Volume | 9 |
| Issue number | 1 |
| DOIs | |
| State | Published - Aug 1981 |
| Externally published | Yes |