the agglomeration of increasing returns activities. When workers migrate towards locations with more firms and higher real … wages, this intensifies agglomeration. When, instead, workers do not move across regions, further reductions in transport …

agglomerating force. This implies that an unstable symmetric equilibrium means IRS cause agglomeration. The central result is that … the symmetric equilibrium to become unstable and agglomeration becomes the only long run equilibrium for the system. …

This paper extends the Puga (1999) model by introducing urban frictions. It assumes that the agglomeration of … finding is that the extension significantly alters the agglomeration properties of the original Puga framework. In particular …, partial agglomeration becomes a stable long run outcome in both with and without migration. Furthermore, the level of …

stochastic nature of the dynamics, even when agglomeration occurs, it is only a metastable state. By giving time and firms … Geography ; Heterogeneity ; Agglomeration ; Technological externalities ; Markov Chains …

also identify equilibria with partial agglomeration of firms. Finally, we show that the incentives to subsidy education …

historically emerged as the core. The agglomeration rent which accrues to the mobile factor gives unions and governments in the …