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Productivity differences and inter-state migration in the U.S.: A multilateral gravity approach
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文摘
We construct a dynamic general equilibrium model of migration with multiple destination choices. The proposed model endogenously generates a multilateral gravity equation of migration though productivity shocks. The model explains interstate migration of the U.S. reasonably well as result of productivity shocks across states. Long-run changes in capital intensity of the production process and the demand for services over manufactured goods impact aggregate level of migration.

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