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Stability of the Mobile-Capital Harris-Todaro Model: Some Further Results.

Abstract:

A necessary and sufficient condition for stability is derived for the mobile-capital Harris-Todaro model of rural to urban migration in developing countries when land is a scarce factor in agriculture. The stability condition when land is ignored-that the urban sector (comprising manufacturing industry and the urban unemployed) be more capital abundant-is no longer either necessary or sufficient for stability. Nevertheless, this condition always enhances stability and it is sufficient (though...

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Journal:
Economica
Volume:
55
Publication date:
1988-01-01
URN:
uuid:2e1728e5-9f12-45bf-ace7-f982740b4970
Local pid:
oai:economics.ouls.ox.ac.uk:10624
Language:
English

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