Incomplete Information and Migration: the Grass is Greener Across the Higher Fence

.  Less information about a location has long been believed to be a barrier to new migration to that location. Diverse empirical results support this belief. Here we show that if agents are risk‐neutral, less information about a location not only is not a barrier to migration to that location, it is...

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Veröffentlicht in:Journal of regional science 2005-02, Vol.45 (1), p.1-19
Hauptverfasser: Allen, Jeremiah M., Eaton, B. Curtis
Format: Artikel
Sprache:eng
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Zusammenfassung:.  Less information about a location has long been believed to be a barrier to new migration to that location. Diverse empirical results support this belief. Here we show that if agents are risk‐neutral, less information about a location not only is not a barrier to migration to that location, it is actually an attractor. Only if agents are Bayesian and risk‐averse is less information a barrier.
ISSN:0022-4146
1467-9787
1467-9787
DOI:10.1111/j.0022-4146.2005.00362.x