Berliant, Marcus; Peng, Shin-Kun; Wang, Ping - Vanderbilt University Department of Economics - 2000
Jacobs (1969) argues that uncompensated knowledge spillovers have played a crucial role in population agglomeration and thus in the generation of cities. We explore this idea formally by extending the Romer (1986) model of (inter-firm) externalities in production to an explicit spatial context....