Economics of Agglomeration: Cities, Industrial Location, and Regional Growth

Front Cover
Cambridge University Press, May 2, 2002 - Business & Economics - 466 pages
This 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
References
433
Name Index
453
Subject Index
459
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