Showing 1 - 10 of 44
We develop a new methodology to estimate the elasticity of urban costs with respect to city population using French land price data. Our preferred estimate, which handles a number of estimation concerns, stands at 0.041. Our approach also yields a number of intermediate outputs of independent...
Persistent link: https://www.econbiz.de/10011083617
We modify Paul Krugman’s (1991) ‘Core–Periphery’ model by replacing the traditional competitive sector with a monopolistically competitive one. We show that the structure of spatial equilibria remains the same as in the original model. This result continues to hold true under Cournot or...
Persistent link: https://www.econbiz.de/10010729451
The Henry George Theorem (HGT), or the golden rule of local public finance, states that, in first-best economies, the fiscal surplus, defined as aggregate land rents minus aggregate losses from increasing returns to scale activities, is zero at optimal city sizes. We derive a general second-best...
Persistent link: https://www.econbiz.de/10008784737
finances the Pigouvian subsidies for agglomeration externalities and the costs of local public goods by a 100% tax on land is … are the sources of agglomeration economies and city governments levy property taxes. Without relying on specific …
Persistent link: https://www.econbiz.de/10011117745
We propose an integrated framework to discuss the empirical literature on the local determinants of agglomeration … agglomeration mechanisms. …
Persistent link: https://www.econbiz.de/10014025314
This chapter surveys recent developments in agglomeration theory within a unifying framework. We highlight how … locational fundamentals, agglomeration economies, the spatial sorting of heterogeneous agents, and selection effects affect the …
Persistent link: https://www.econbiz.de/10014025315
We study the impact of falling trade costs and falling national transport costs on the economic geography of countries involved in an integration process. Two regions between which labour is mobile form each country, but there is no international factor mobility. Commodities can be traded both...
Persistent link: https://www.econbiz.de/10005667127
Firms are more productive on average in larger cities. Two explanations have been offered: agglomeration economies … selection model and a standard model of agglomeration. Stronger selection in larger cities left-truncates the productivity … distribution whereas stronger agglomeration right-shifts and dilates the distribution. We assess the relative importance of …
Persistent link: https://www.econbiz.de/10005791878
agglomeration economies. This paper provides a microeconomically founded model of vertical city differentiation in which the latter … two mechanisms (`agglomeration' and `selection') operate simultaneously. Our model is both rich and tractable enough to …
Persistent link: https://www.econbiz.de/10005792517
This chapter surveys recent developments in agglomeration theory within a unifying framework. We highlight how … locational fundamentals, agglomeration economies, the spatial sorting of heterogeneous agents, and selection effects affect the …
Persistent link: https://www.econbiz.de/10011084057