On the optimal choice of capital intensity in LDCs with migration

Research output: Contribution to journalArticlepeer-review

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 languageEnglish
Pages (from-to)31-41
Number of pages11
JournalJournal of Development Economics
Volume9
Issue number1
DOIs
StatePublished - Aug 1981
Externally publishedYes

Fingerprint

Dive into the research topics of 'On the optimal choice of capital intensity in LDCs with migration'. Together they form a unique fingerprint.

Cite this