The monocentric city model is generalized to a fully structural form with leisure in utility, congested commuting, and the equalizing of utility and perimeter land price across metros. Exogenous and agglomerative differences in total factor productivity (TFP) drive differences in metro...

A neoclassical model of local growth is developed by integrating the static equilibrium underlying compensating differential theory as the long run steady state of a Ramsey-Cass-Koopmans growth model. Numerical results show that even very small frictions to both labor and capital mobility along...