"This paper proposes a simple theory of a system of cities that decomposes the determinants of the city size … larger cities, but also to greater frictions through congestion and other negative effects of agglomeration. Using data on … across cities are modest. When allowing for externalities, we find an important city selection effect: eliminating …

This paper proposes a simple theory of a system of cities that decomposes the determinants of the city size … larger cities, but also to greater frictions through congestion and other negative effects of agglomeration. Using data on … across cities are modest. When allowing for externalities, we find an important city selection effect: eliminating …

This paper proposes a simple theory of a system of cities that decomposes the determinants of the city size … larger cities, but also to greater frictions through congestion and other negative effects of agglomeration. Using data on … across cities are modest. When we introduce externalities, we find an important city selection effect: eliminating …

existence of agglomeration economies, which exist when productivity rises with density, but estimating the magnitude of those … to be important in driving urban success. Instead, modern cities are far more dependent on the role that density can play …Empirical research on cities starts with a spatial equilibrium condition: workers and firms are assumed to be …