congestion and that the current provision of roads exceeds the optimum given the absence of congestion pricing. …

agglomeration economies. We develop a model of systems of cities that combines all three elements and suggests interesting … complementarities between them. The model can replicate stylized facts about sorting, agglomeration, and selection in cities. It also … entrepreneurs and firms, or because of agglomeration economies. We develop a model of systems of cities that combines all three …

cities toughen competition, allowing only the most productive to survive) and agglomeration economies (larger cities promote … a generalised version of a tractable firm selection model and a standard model of agglomeration. Stronger selection in … larger cities left-truncates the productivity distribution whereas stronger agglomeration right-shifts and dilates the …

into large cities, because large cities select more productive entrepreneurs and firms, or because of agglomeration … between them. The model can replicate stylised facts about sorting, agglomeration, and selection in cities. It can also …