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 …

, namely the joint consideration of agglomeration and growth. We also review empirical methods and findings based on natural …

This paper studies how firm heterogeneity in terms of productivity affects the balance between agglomeration and … mark-ups. It shows that firm heterogeneity matters. However, whether it shifts the balance from agglomeration to dispersion … 'evenness'. Accordingly, the role of firm heterogeneity in selection models of agglomeration cannot be fully understood without …

This paper develops a quantitative model of city structure to separate agglomeration forces, dispersion forces and …

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 …