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This paper examines equilibrium and changes in equilibrium in international trade under conditions of increasing returns to scale in production. The first section of the paper solves for stable equilibrium positions between two trading partners; the reader should find this section a refinement...
Persistent link: https://www.econbiz.de/10011940385
This paper presents a simple general equilibrium model of an economy where production and consumption occur in cities. The paper focuses on the different sizes and types of cities generated by market forces and whether these market forces generate optimally size cities. Before the model is...
Persistent link: https://www.econbiz.de/10011940398
In this paper, the Losch-Beckmann hierarchy model of city size is evaluated in terms of its economic content and consistency. It is shown that the model violates basic economic principles. Consequently, an alternative framework is outlined, and for a simple example the properties of the model...
Persistent link: https://www.econbiz.de/10011940399
This paper discusses whether market-achieved city size is greater or less than optimum city size. The divergence between optimum and achieved city size is due to external diseconomies such as pollution. Imposing an optimal tax on pollution may not, as is commonly thought, cause even an initial...
Persistent link: https://www.econbiz.de/10011940414