Reference : On microfoundations of the city
Scientific journals : Article
Business & economic sciences : Economic systems & public economics
http://hdl.handle.net/10993/12870
On microfoundations of the city
English
Picard, Pierre M. mailto [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA) >]
Tabuchi, Takatoshi [> >]
2013
Journal of Economic Theory
Academic Press
148
6
2561-2582
Yes (verified by ORBilu)
International
0022-0531
San Diego
CA
[en] Co-agglomeration ; continuous distribution ; new economic geography ; Forward and backward linkages ; housing space
[en] This paper considers the spatial structure of a city subject to final demand and vertical linkages. Individuals consume differentiated goods (or services) and firms purchase differentiated inputs (or services) in product (or service) markets where firms compete under monopolistic competition. Workers rent their residential lots in an urban land market and contribute to the production of differentiated goods and inputs. We show that firms and workers co-agglomerate and endogenously form a city. We characterize and discuss the spatial distribution of firms and consumers in such cities on one- and two-dimensional spaces. We show that final demand and vertical linkages raise the urban density and reduce the city spread.
Researchers ; Students
http://hdl.handle.net/10993/12870
http://www.sciencedirect.com/science/article/pii/S0022053113001415

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