A spatial model with local public good is developed for analysing market equilibrium and social optimum under costly migration. The utility cost differentials are shown to exist between regions in equilibrium, and an appropriate federal policy intervention in the form of inter-regional transfers...

This note demonstrates that the problem of aggregation in modeling individual migration behavior as a response to fiscal and nonfiscal factors is not concomitant with moving costs. On the other hand, it depends on the specification of the utility function with moving costs. An additively...