Behrens, Kristian; Duranton, Gilles; Robert-Nicoud, … - Institut d'Economie et Econométrie, Université de Genève - 2013
Large cities produce more output per capita than small cities. This higher productivity may occur because more talented individuals sort into large cities, because large cities select more productive entrepreneurs and firms, or because of agglomeration economies. We develop a model of systems of...