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Analysis on Firm Behavior and Individual’s Utility Maximization Through Regional Agglomeration Economies

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This paper presents how an individual’s utility can improve under several given constraints, which may include job environment and the level of regional welfare as well as a budget constraint. Here, the job environment can be interpreted to mean that every laborer faces time consumption for work, and thus they need to purchase external services to complete private tasks. The level of regional welfare may partly depend on the extent of local community coordination. Hence, the analysis studies a self-sustaining regional system under limited local resources. The argument also reveals that the availability of local resources and the job environment of each individual can be closely related to each other. As a result, the examination includes the system of the regional economy together with the decision-making behavior of local individuals and firms.

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A preliminary version of the paper is presented at the Annual Autumn Meeting of the Japan Association for Applied Economics in October 2017 at Tokyo. This research was partly supported by Japan Society for the Promotion of Science (JSPS) KAKENHI, Grant Number 16K03643.

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Correspondence to Daisuke Nakamura .

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Nakamura, D. (2018). Analysis on Firm Behavior and Individual’s Utility Maximization Through Regional Agglomeration Economies. In: Hosoe, M., Kim, I., Yabuta, M., Lee, W. (eds) Applied Analysis of Growth, Trade, and Public Policy. Springer, Singapore.

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  • Print ISBN: 978-981-13-1875-7

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