Ottaviano, Gianmarco I.P. - In: Regional Science and Urban Economics 42 (2012) 6, pp. 987-997
This paper studies how firm heterogeneity in terms of productivity affects the balance between agglomeration and … endogenous markups. It shows that firm heterogeneity matters. However, whether it shifts the balance from agglomeration to … ‘evenness’. Accordingly, the role of firm heterogeneity in selection models of agglomeration can not be fully understood without …