Optimal relocation strategies for spatially mobile consumers

Authors :: Iordanov, Iordan
Vassilev, Andrey
Publication Year :: 2007
Abstract: We develop a model of the behaviour of a dynamically optimizing economic agent who makes consumption-saving and spatial relocation decisions. We formulate an existence result for the model, derive the necessary conditions for optimality and study the behaviour of the economic agent, focusing on the case of a wage distribution with a single maximum.<br />Comment: 27 pages