This paper develops a two-sector R&D-based growth model with congestion effects from increasing urban population … from the modern to the traditional sector and Engel's law holds. In turn, urban congestion effects cause a productivity … allocation depends on the strength of urban congestion effects. -- congestion ; endogenous growth ; Engel's law ; structural …

This paper explores the relationship between aggregate and relative congestion, returns to scale and economic growth …. Aggregate congestion reduces the effective productivity of capital; relative congestion reduces the effective productivity of … labour. Both forms of congestion adversely affect the equilibrium growth rate, although their relative effects depend upon …

growth. The analysis is performed in a two-country growth model with endogenous fertility, in which congestion diseconomies …