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In contrast to what several papers have argued recently, we show that firm heterogeneity fosters agglomeration of … economic activity. If firms are more similar with respect to their total factor productivity, each company faces a lower … propensity to export. This renders the home market more important speaking against agglomeration. We also relate changes in firm …
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that boost agglomeration forces and innovation, fostering further concentration of economic activities. For historic …-offs between agglomeration economies and increasing climate-induced hazards, we develop an evolutionary agent-based model with … growth. Flood damages affect Coastal firms hitting their labour productivity, capital stock and inventories. We find that the …
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We review the theoretical links between growth and agglomeration. Growth, in the form of innovation, can be at the … origin of catastrophic spatial agglomeration in a cumulative process la Myrdal. One of the surprising features of the Krugman … trade model with trade costs could lead to catastrophic agglomeration. The growth analog to this result is that the …
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