Empirical studies consistently report that labour productivity and TFP rise with city size. The reason is that cities … 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 …

sectors and regions creates a tendency for urban agglomeration. Demand from rural areas favours urban dispersion. European … urbanisation took place mainly in the XIX Century, with higher costs of spatial interaction, weaker economics of scale, and less …

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 …

We show in the framework of a new economic geography model that when labor is heterogenous and productivity depends on … 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 …

hub- and-spoke arrangement favours location in the hub, with better reciprocal access induces agglomeration in the hub and …

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 …

-time panel data on Italian provinces, I structurally estimate a NEG model in order to both test the coherence of theory with data …