This paper considers the spatial structure of a city subject to final demand and vertical linkages. Individuals consume differentiated goods (or services) and firms purchase differentiated inputs (or services) in product (or service) markets where firms compete under monopolistic competition....

This paper considers the spatial structure of a city subject to final demand and vertical linkages. Individuals consume differentiated goods (or services) and firms purchase differentiated inputs (or services) in product (or service) markets where forms compete under monopolistic competition....

This paper considers the racetrack economic approach, where manufacturing activities are distributed continuously. We seek constant-access equilibria and show that smooth equilibrium distributions are always unstable for almost all transport cost functions, whereas agglomeration in 1 or 2 atomic...