This study utilises a precise diagrammatic exposition to analyse issues involving the existence and stability of cities, land rents, and private and public local finance. In spite of the limitations of the exposition (such as having only two dimensions) the model is very general, primarily due...

We show that current measures of welfare changes which are all based on the compensated variation (CV) and the equivalent variation (EV) do not apply to an economy with cities. In addition, since these measures are utilized in a partial equilibrium analysis they capture only part of the effect...

The literature on agglomeration has focused largely on primary agglomeration caused by direct attraction effects. Here we focus on secondary and tertiary agglomerations caused by a primary agglomeration. Initially, scale economies in the provision of club goods (CGs) lead each CG to agglomerate...