Reference : Urban Structures with Forward and Backward Linkages
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Business & economic sciences : Special economic topics (health, labor, transportation…)
Urban Structures with Forward and Backward Linkages
Picard, Pierre M mailto [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA) >]
Mossay, Pascal [Newcastle University, United Kingdom]
Tabuchi, Takatoshi [University of Tokyo, Japan]
[en] Cities ; Backward and forward linkages ; Urban Equilibrium
[en] We study urban structures driven by demand and vertical linkages in the presence of increasing returns to scale. Individuals consume local urban varieties and firms use these varieties to produce a national good. We prove the existence of a spatial equilibrium and obtain an invariance result according to which more intense demand or vertical linkages have the same effect on the urban structure as lower commuting costs. Various urban configurations can emerge exhibiting a monocentric, an integrated, a duocentric, or a partially integrated city structure. We discuss the role of commuting and transport costs, intensities of demand and vertical linkages, and urbanization in affecting these patterns. We show that multiple equilibria may arise in equilibrium involving the monocentric city and up to a couple of duocentric and partially integrated structures.
Urban Structures with Forward and Backward Linkages

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