I build a model with a microfoundation to understand how productivity changes in the manufacturing and the agricultural sectors impact the relative size of a city and the surrounding rural area, both in terms of physical area and population. I also examine rural-urban differentials in land rentals. I find that the "Green Revolution" is more important than the Industrial Revolution in terms of the impact on the urbanization process. Government policies on the optimal sizes of cities are discussed.
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Find related papers by JEL classification: R12 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Piyabha Kongsamut & Sergio Rebelo & Danyang Xie, 1997.
"Beyond Balanced Growth,"
NBER Working Papers
6159, National Bureau of Economic Research, Inc.
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