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key insight that emerges is that the interaction between agglomeration economies and comparative advantage involves a … comparative advantage in sectors governed by this force whilst the impact of agglomeration economies is enhanced by trade cost … small economies is not only shaped by the primitives that determine agglomeration economies and comparative advantage but …
Persistent link: https://www.econbiz.de/10011559701
Urbanization economies - the effects on productivity and utility created endogenously by larger cities - are a fundamental component of both the economic geography of modern societies and the perpetuation of innovation and economic growth at a national level. Cities account for vast majorities...
Persistent link: https://www.econbiz.de/10010269597
and city population. This paper embeds a “black box” agglomeration economy within a more neoclassical general equilibrium … and wages move in the same direction under neo-classical assumptions, agglomeration economies in production, congestion in … variables, although some of these effects are ambiguous in the production agglomeration model. If natural advantage and housing …
Persistent link: https://www.econbiz.de/10005822201
Urbanization economies – the effects on productivity and utility created endogenously by larger cities – are a fundamental component of both the economic geography of modern societies and the perpetuation of innovation and economic growth at a national level. Cities account for vast...
Persistent link: https://www.econbiz.de/10008469719
We develop a new methodology to estimate the elasticity of urban costs with respect to city population using French land price data. Our preferred estimate, which handles a number of estimation concerns, stands at 0.041. Our approach also yields a number of intermediate outputs of independent...
Persistent link: https://www.econbiz.de/10010291364
We develop a new methodology to estimate the elasticity of urban costs with respect to city population using French land price data. Our preferred estimate, which handles a number of estimation concerns, stands at 0.041. Our approach also yields a number of intermediate outputs of independent...
Persistent link: https://www.econbiz.de/10010766379
It is widely believed that unaffordable housing could drive businesses away and thus impede job growth. However, there is little evidence to support this view. This paper presents a simple model to clarify how housing affordability is linked to employment growth and why unaffordable housing...
Persistent link: https://www.econbiz.de/10010352254
This paper tracks the consequences of individuals' desire to align their location with their social preferences. The social preference studied in the paper is distaste for relative deprivation, measured in a cardinal manner. Location is conceived as social space, with individuals choosing to...
Persistent link: https://www.econbiz.de/10012006031
We analyze the role of optimal income taxation across different local labor markets. Should labor in large cities be taxed differently than in small cities? We find that a planner who needs to raise revenue and is constrained by free mobility of labor across cities does not choose equal taxes...
Persistent link: https://www.econbiz.de/10010481681
The model of compensating differentials in regional labor markets was developed by Roback(1982). The model interprets regional differences in constant quality wages and rents ascompensating firms and residents for inter-regional differences in amenities. The modelassumes that the costs of...
Persistent link: https://www.econbiz.de/10005861156