抄録
In this paper, we analyze the following problem, using Alonso-Wheaton type two-city model; when the change of the unit transport cost in a city affects not only the utility level of its residents but also that of the residents in the other city through inter-city migration, how should its change be evaluated?
We get the following results: Under an optimal inter-city income transfer, the benefits of the change of the unit transport cost in a city is measured correctly by the partial equilibrium measure. But, otherwise, its measure becomes over (under)-estimated if the marginal external effect of migration in the city is larger (smaller) than that in the other city.
