On the optimal choice of capital intensity in LDCs with migration

Oded Stark*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review


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
Issue number1
StatePublished - Aug 1981
Externally publishedYes


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