Showing 1 - 10 of 1,235
We investigate the role of skill heterogeneity in explaining location patterns induced by pecuniary externalities (Krugman (1991)). In our setting, sellers with higher skills perform better in the marketplace, and their sales are larger. Selling to distant locations leads to lower sales because...
Persistent link: https://www.econbiz.de/10005124178
models involving spatial agglomeration of economic activities. The proposed method overcomes the limitations of the Turing … (1952) approach that has been used to analyze the emergence of agglomeration in the multi-regional core–periphery (CP) model … of Krugman (1993, 1996). In other words, the proposed method allows us to examine whether agglomeration of mobile factors …
Persistent link: https://www.econbiz.de/10011051967
We develop a model of trade and agglomeration that incorporates trade in both intermediate goods and final goods and … characterize world equilibrium and establish the conditions under which industrial agglomeration arises as a stable equilibrium … effect becomes influential, trade liberalization can generate non-monotonic effects on industrial agglomeration. The …
Persistent link: https://www.econbiz.de/10010594975
We model the behavior of rational forward-looking agents in a spatial economy. The economic geography structure is built on Fujita et al. (1999)'s racetrack economy. Workers choose optimally what to consume at each period, as well as which spatial itinerary to follow in the geographical space....
Persistent link: https://www.econbiz.de/10010636464
This Paper studies the theoretical micro-foundations of urban agglomeration economies. We distinguish three types of … characterization of some of the main theoretical underpinnings of urban agglomeration economies, to discuss modeling issues that arise … when working with these tools, and to compare different sources of agglomeration economies in terms of the aggregate urban …
Persistent link: https://www.econbiz.de/10005791489
the quality of the match between job and worker, trade liberalization may lead to industrial agglomeration and inter …-industry trade. The agglomeration force is the improvement in the quality of matches when firms recruit from a bigger pool of labour …. The forces against agglomeration are the existence of trade costs and monopoly power in the labour market. We show that …
Persistent link: https://www.econbiz.de/10005791724
This paper investigates the urbanization of the Indian manufacturing sector by combining enterprise data from formal and informal sectors. We find that plants in the formal sector are moving away from urban and into rural locations, while the informal sector is moving from rural to urban...
Persistent link: https://www.econbiz.de/10011227923
The paper studies the optimal distribution of business and residential land in a circular city. Once the optimum is characterized, we analyze the effect of changes in commuting costs and externality parameters. We also propose policies like labor subsidies, land taxes and zoning restrictions...
Persistent link: https://www.econbiz.de/10004970370
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
Optimality of urban density regulations differs between a closed city and an open city. We demonstrate, by examining optimal floor area ratio (FAR) regulation, how to control building size to mitigate traffic congestion externality in a monocentric city. Results show that a closed city requires...
Persistent link: https://www.econbiz.de/10010580901