Reference : On microfoundations of the city
Scientific journals : Article
Business & economic sciences : Economic systems & public economics
On microfoundations of the city
Picard, Pierre M. mailto [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA) >]
Tabuchi, Takatoshi [> >]
Journal of Economic Theory
Academic Press
Yes (verified by ORBilu)
San Diego
[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

File(s) associated to this reference

Fulltext file(s):

Limited access
onmicrofoundations.pdfAuthor postprint695.54 kBRequest a copy

Bookmark and Share SFX Query

All documents in ORBilu are protected by a user license.