This handbook chapter studies the theoretical micro-foundations of urban agglomeration economies. We distinguish three … precise characterisation of some of the main theoretical underpinnings of urban agglomeration economies, to discuss modelling … issues that arise when working with these tools, and to compare different sources of agglomeration economies in terms of the …

comprehensive approach to labor market pooling. It jointly considers many different aspects of the agglomeration labor market … local population density, which is consistent with theories of agglomeration and uncertainty. The paper also finds evidence … paper provides evidence consistent with agglomeration improving job matches. However, the labor market pooling gains that we …

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 …