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cluster together, turning location into a self-reinforcing process. However, agglomeration raises the price of immobile local …
Persistent link: https://www.econbiz.de/10010745164
When firms cluster in the same local labor market, they face a trade-off between the benefits of labor pooling (i.e., access to workers whose knowledge help reduce costs) and the costs of labor poaching (i.e., loss of some key workers to competition and the indirect effect of a higher wage bill...
Persistent link: https://www.econbiz.de/10010745267
the agglomeration of increasing returns activities. When workers migrate towards locations with more firms and higher real … wages, this intensifies agglomeration. When instead workers do not move across regions, further reductions in transport …
Persistent link: https://www.econbiz.de/10010745635
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 labor …. The forces against agglomeration are the existence of trade costs and monopoly power in the labor market. We show that …
Persistent link: https://www.econbiz.de/10010745739
While transport costs have fallen, the empirical evidence also points at rising total trade costs. In a model of industry location with endogenous transaction costs, we show how and under which conditions a decline in transport costs can lead to an increase in the total cost of trade.
Persistent link: https://www.econbiz.de/10010745746
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/10010745770
hub- and-spoke arrangement favours location in the hub, with better reciprocal access induces agglomeration in the hub and …
Persistent link: https://www.econbiz.de/10010745864
to industrial agglomeration and inter-regional trade. Labor heterogeneity gives local monopoly power to firms but also … the local market, giving rise to an agglomeration force which can offset the forces against, trade costs and the erosion … of monopoly power. We derive analytically a robust agglomeration equilibrium and illustrate its properties with numerical …
Persistent link: https://www.econbiz.de/10010746150
Persistent link: https://www.econbiz.de/10010746386
sectors and regions creates a tendency for urban agglomeration. Demand from rural areas favours urban dispersion. European …
Persistent link: https://www.econbiz.de/10010746563