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The goal of this essay is to introduce advanced undergraduates to urban general equilibrium theory.
Persistent link: https://www.econbiz.de/10005118992
We study the indeterminacy of equilibrium in the Fujita-Krugman (1995) model of city formation under monopolistic competition and increasing returns. Both the number and the locations of cities are endogenously determined. Assuming smooth transportation costs, we examine equilibria in...
Persistent link: https://www.econbiz.de/10005062508
We present two notions of “no arbitrage” in urban economic models and show that there is no model satisfying both. The standard hedonic housing model of urban economics and its generalizations are consistent with the first of these, but inconsistent with the second. We present a model...
Persistent link: https://www.econbiz.de/10005124890
We develop a model with a finite number of households and congestable local public goods where the level of provision, the number of facilities and their locations are all endogenously determined. We prove that an equal-treatment identical-provision second-best optimum exists, where all...
Persistent link: https://www.econbiz.de/10005560984
Conventional wisdom tells us that with no market failure and local non- satiation of preferences, the core is at least as large as the collection of competitive equilibrium allocations. We confirm this for a standard model featuring land. Next we consider the public land ownership version of the...
Persistent link: https://www.econbiz.de/10005560986
The aim of this paper is to explore the structure of cities as a function of labor differentiation, gains to trade, a fixed cost for constructing the transportation network, a variable cost of commodity transport, and the commuting costs of consumers. Firms use different types of labor to...
Persistent link: https://www.econbiz.de/10005118959
innovations. We demonstrate that the extent of agglomeration has significant implications for the patterns of information flows in … economies. By simultaneously determining the patterns of knowledge exchange and the population agglomeration of an economy, we … find that population agglomeration is generally accompanied by higher growth. The main findings remain qualitatively …
Persistent link: https://www.econbiz.de/10005556221
construct an endogenous growth model with dynamic interactions between spatial agglomeration and urban development. In contrast …
Persistent link: https://www.econbiz.de/10005556222
, avenues for future research are explored. Correlations between agglomeration and growth in the various models and data are …
Persistent link: https://www.econbiz.de/10005118970
This is a short dictionary entry. Central place theory is a descriptive theory of market area in a spatial context. Its definition, history, and relation to modern microeconomic theory are provided.
Persistent link: https://www.econbiz.de/10005118994