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The methodology used by theories to explain the size distribution of cities takes an empirical fact and works backward to first obtain a reduced form of a model, then pushes this reduced form back to assumptions on primitives. The induced assumptions on consumer behavior, particularly about...
Persistent link: https://www.econbiz.de/10005623391
Applications of the framework of behavioral economics to questions arising from urban economics are discussed. Directions for future research are outlined.
Persistent link: https://www.econbiz.de/10005616715
We criticize the theories used to explain the size distribution of cities. They take an empirical fact and work backward to obtain assumptions on primitives. The induced theoretical assumptions on consumer behavior, particularly about their inability to insure against the city-level productivity...
Persistent link: https://www.econbiz.de/10005787001
The methodology used by theories to explain the size distribution of cities takes an empirical fact and works backward to first obtain a reduced form of a model, then pushes this reduced form back to assumptions on primitives. The induced assumptions on consumer behavior, particularly about...
Persistent link: https://www.econbiz.de/10005787178
The methodology used by theories to explain the size distribution of cities is contrived in that it takes an empirical fact and works backward to first obtain a reduced form of a model, then pushes this reduced form back to assumptions on primitives. The induced assumptions on consumer behavior,...
Persistent link: https://www.econbiz.de/10005789453
This paper presents a difference in the comparative statics of general equilibrium models with land when there are finitely many agents, and when there is a continuum of agents. Restricting attention to quasi-linear and Cobb-Douglas utility, it is shown that with finitely many agents, an...
Persistent link: https://www.econbiz.de/10005789617
This is a short essay on open questions in urban economic theory.
Persistent link: https://www.econbiz.de/10005835506
We criticize the theories used to explain the size distribution of cities. They take an empirical fact and work backward to obtain assumptions on primitives. The induced theoretical assumptions on consumer behavior, particularly about their inability to insure against the city-level productivity...
Persistent link: https://www.econbiz.de/10005835673
The long-term trends of urbanization suggest: not only have more cities formed, but the leading metropolises have grown larger, with a number of peripheral subcenters developing over time. Conventional models of urban growth are limited, in that commuting cost and congestion eventually result in...
Persistent link: https://www.econbiz.de/10005835872
Canonical analysis of the classical general equilibrium model demonstrates the existence of an open and dense subset of standard economies that possess fully-revealing rational expectations equilibria. This paper shows that the analogous result is not true in urban economies. An open subset of...
Persistent link: https://www.econbiz.de/10005836820