Desmet, Klaus; Rossi-Hansberg, Esteban - C.E.P.R. Discussion Papers - 2010
distribution into three main components: efficiency, amenities, and frictions. Higher efficiency and better amenities lead to … MSAs in the United States, we parametrize the model and empirically estimate efficiency, amenities and frictions … larger cities, but also to greater frictions through congestion and other negative effects of agglomeration. Using data on …