Economics of Agglomeration: Cities, Industrial Location, and Regional GrowthThis book provides the first unifying treatment of the range of economic reasons for the clustering of firms and households. Its goal is to explain further the trade-off between various forms of increasing returns and different types of mobility costs. Although referring to agglomeration as a generic term is convenient, it should be noted that the concept of economic agglomeration refers to distinct real world situations. The main focus of the treatment is on cities, but it also explores the formation of agglomerations, such as commercial districts within cities, industrial clusters at the regional level, and the existence of imbalance between regions. The book is rooted within the realm of modern economics and borrows concepts from geography and regional science, which makes it accessible to a broad audience formed by economists, geographers, regional planners, and other scientists. It may be used in coursework for graduate students and upper-level undergraduates. |
Contents
Agglomeration and Economic Theory | 1 |
Past and future | 3 |
13 Why Do We Observe Agglomeration | 5 |
14 On the relationship between Space and Economics | 11 |
15 Plan of the Book | 15 |
FUNDAMENTALS OF GEOGRAPHICAL ECONOMICS | 23 |
The Breakdown of the Price Mechanism Spatial Economy | 25 |
22 The Quadratic Assignment Problem | 28 |
72 Monopolistic Completion and the Agglomeration of Retailers | 221 |
73 Oligopolistic Competition and the Agglomeration of Retailers | 232 |
74 Consumers Search and the Clustering of Shops | 243 |
75 The formation of Urban Employment Centers | 248 |
76 Concluding Remarks | 258 |
Appendix | 259 |
FACTOR MOBILITY AND INDUSTRIAL LOCATION | 265 |
Industrial Agglomeration under Marshallian Externalities | 267 |
23 The Spatial Impossibility Theorem | 30 |
24 The first welfare Theorem in a spatial Economy | 47 |
25 Consideration on the Second Welfare Theorem in a Spatial Economy | 49 |
26 Concluding Remarks | 56 |
The Thünen Model and Land Rent Formation | 62 |
32 The Location of Divisible Activities | 65 |
33 The Urban Land Rent | 78 |
34 Concluding Remark | 90 |
Increasing Returns and Transport Costs The Fundamental TradeOff of a Spatial Economy | 93 |
42 Microfoundations of Increasing Returns at the City Level | 98 |
43 City size under Scale Economics | 106 |
44 Trade in System of Cities | 115 |
45 Competition and the Spatial Organization of markets | 119 |
46 Concluding Remarks | 128 |
Cities and the Public Sector | 133 |
52 The City as a Public Good | 136 |
53 The Number and Size of Cities under politics | 149 |
54 Concluding Remarks | 159 |
Appendix | 160 |
THE STRUCTURE OF METROPOLITAN AREAS | 167 |
The Spatial Structure of Cities under Communications Externalities | 169 |
62 Agglomeration as Spatial Interaction among Individuals or Firms | 174 |
63 The City as Spatial Interdependence between Firms and Workers | 185 |
64 The Monocentric City | 191 |
65 The Polycentric City | 201 |
66 Suburnization and the Location of Multiunit Firms | 209 |
67 Concluding Remarks | 210 |
Appendix | 211 |
The Formation of Urban Centers under Imperfect Competition | 217 |
82 Factor Mobility and Agglomeration Economices | 270 |
83 Oligopoly Localization Economies and Regional Advantage | 278 |
84 The Formation of industrial Clusters under Localization Economies | 286 |
85 Concluding Remarks | 298 |
Appendix | 299 |
Industrial Agglomeration under Monopolistic Competition | 303 |
92 The Coreperphery Model | 307 |
93 Sticky Labor and Regional Specialization | 321 |
94 A Linear Model of Core periphery Discriminatory | 327 |
95 On the impact of forward looking Behavior | 338 |
96 Concluding Remarks | 343 |
APPEND1X | 345 |
URBAN SYSTEMS AND REGIONAL GROWTH | 349 |
Back to Thünen The Formation of Cities in a Spatial Economy | 351 |
102 City Formation under preference for Variety | 355 |
103 City Formation with Intermediate Commodities | 365 |
104 On the Emergence and Structure of Urban Systems | 379 |
105 Concluding Remarks | 384 |
Appendix | 386 |
On the Relationship between Agglomeration and Growth | 388 |
112 A Model of Agglomeration and Growth | 392 |
113 Agglomeration and Growth When Production is Footloose | 401 |
114 Agglomeration and Growth in the Presence of Barriers that Presence Innovation Transfer | 412 |
115 Concluding Remarks | 421 |
Appendix | 422 |
433 | |
453 | |
459 | |
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Common terms and phrases
activities agents agglomeration agricultural assume b₁ b₂ bid rent function chap Chapter choose cluster commuting costs condition configuration consider constraint consumers consumption core-periphery structure corresponding decreasing demand denoted density developed dispersion distance distribution equal equilibrium prices existence externalities firms located follows Fujita Furthermore given growth Hence implies income increasing returns industrial interaction intermediate labor market linear M-good M-sector marginal cost maximize modern sector monocentric monopolistic competition Nash equilibrium number of firms obtain optimal optimum outcome output parameter pecuniary externalities population population density product differentiation profit Proposition quadratic assignment problem region residential equilibrium result returns to scale Section skilled workers space spatial competition spatial economy spatial equilibrium ss-growth path sumers symmetric symmetric equilibrium theorem theory Thisse trade trade-off transport costs unskilled urban economics utility level variety wage welfare welfare theorem whereas y₁ yields zero