the aim of comparing the only two possible market outcomes, i.e. agglomeration and dispersion. More precisely, we use the … plausible values of the main parameters suggest that there might be excessive agglomeration. …

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 …

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 …

This Paper takes a broader look at how vertical linkages can trigger the spatial agglomeration of economic activity in … too little agglomeration. It shows that, in terms of positive implications, vertical-linkage models are identical to … implications in the absence of interregional transfers: in migration models agglomeration is necessarily bad for people stuck in …

, irrespective of the underlying agglomeration mechanism assumed (factor migration, input-output linkages, endogenous capital … manufacturing sector is clustered in a single location; we refer to such a steady states as 'agglomeration'. I establish that both … agglomeration and dispersion are stable steady state for some economically meaningful parameter values of the model. This paper also …

into large cities, because large cities select more productive entrepreneurs and firms, or because of agglomeration … between them. The model can replicate stylised facts about sorting, agglomeration, and selection in cities. It can also …