Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
971414 | Journal of Urban Economics | 2008 | 15 Pages |
Abstract
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 decreasing returns in a monocentric city as population becomes very large. We construct a general-equilibrium model with dynamic interactions between spatial agglomeration and urban development, driven by location-dependent knowledge spillovers. Our contribution allows endogenous development of subcenters to capture benefits from knowledge spillovers and offset diminishing returns from urban congestion, thus permitting more sustained city growth.
Related Topics
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Economics and Econometrics
Authors
Marcus Berliant, Ping Wang,