This paper proposes an iterative three-step spatial clustering procedure to define Functional Economic Market Areas (FEMAs) with an evolutionary computational approach using flow data on economic linkages. FEMAs are needed as basic observation units in disaggregated economic data analysis, since...

Using a simple two-region model with the positive and negative effects of labor heterogeneity, we investigate the agglomeration pattern of entrepreneurs and the commuting pattern of heterogeneous workers. Labor heterogeneity is a source of productivity for e.g. high-tech industries as well as is...

In the United States, regions with more human capital tend to attract skilled workers (e.g., see Glaeser and Berry, 2005), and as a result, convergence between regions does not occur (e.g., see Barro and Sala-i-Martin, 1992). Presently, many of the most productive European workers try to migrate...

Using a simplified NEG model, we investigates the relation between labor diversity and agglomeration. In the theoretical part, we assume the following two-region model. Homogenous consumption goods are produced using a constant returns technology with homogenous capital and heterogenous workers....

This paper examines whether population shrinkage leads to changes in the urban hierarchy in terms of relative sizes of cities and their functions onomic geography. We work backwards in a racetrack economy with eight cities in a long-run equilibrium. Initial distribution of population is chosen...

We analyze the role of optimal income taxation across different local labor markets. Should labor in large cities be taxed differently than in small cities? We find that a planner who needs to raise revenue and is constrained by free mobility of labor across cities does not choose equal taxes...

New economic geography focuses on the impact of falling transport costs on the spatial distribution of activities. However, it disregards the role of technological innovations, which are central to modern economic growth, as well as the role of migration costs, which are a strong impediment to...

Innerhalb der letzten Jahrzehnte hat ein Großteil der industrialisierten Länder einen Anstieg der Pendeldistanzen verzeichnet. Dies ruft zunehmendes Interesse an den Determinanten der Pendelstrecken hervor. Die primäre theoretische Erklärung für längere Pendeldistanzen basiert auf höheren...

This paper studies Krugman's (1991) core-periphery model and extends it to include environmental pollution. We present the first analytic proof that only an even spreading of the firms over both of the two regions or a complete agglomeration of all manufacturing firms in one region are possible...

We describe an unsupervised method for delineating functional labour market areas (LMAs) in national commuting networks. Our method uses the Louvain algorithm, which we extend to support top-down hierarchical LMA classification and estimable classification stabilities. We demonstrate our method...