cluster together, turning location into a self-reinforcing process. Agglomeration raises the price of immobile local factors …

deregulation of the transport sector leads to more inefficient agglomeration. This latter change may, quite surprisingly, increase …

the agglomeration of increasing returns activities. When workers migrate towards locations with more firms and higher real … wages, this intensifies agglomeration. When workers do not move across regions, further reductions in transport costs make …

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 …

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 …

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 …