Engel's law, Petty's law, and agglomeration
AbstractThis paper presents a model of structural change and agglomeration. A decline in transportation costs, by enhancing consumers' purchasing power, leads to Engel's law of the demand shift from agricultural to non-agricultural goods. At the same time, the decline in transportation costs, by enlarging the extent of the market for non-agricultural goods, induces Petty's law of the labor reallocation from agriculture to non-agricultural activities. These structural transformations weaken dispersion forces given by farmers tied to the land, whereas they strengthen agglomeration forces generated by footloose non-agricultural workers. Thus, a substantial decline in transportation costs gives rise to agglomeration of non-agricultural activities.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Journal of Development Economics.
Volume (Year): 87 (2008)
Issue (Month): 1 (August)
Contact details of provider:
Web page: http://www.elsevier.com/locate/devec
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Holger Breinlich & Alejandro Cuñat, 2012.
"Geography, Non-Homotheticity, and Industrialization: A Quantitative Analysis,"
CeFiG Working Papers
19, Center for Firms in the Global Economy, revised 01 Dec 2012.
- Holger Breinlich & Alejandro Cuñat, 2012. "Geography, Non-Homotheticity, and Industrialization: A Quantitative Analysis," CESifo Working Paper Series 3927, CESifo Group Munich.
- Hélène LATZER & Florian MAYNERIS, 2012.
"Income distribution and vertical comparative advantage Theory and evidence,"
Discussion Papers (IRES - Institut de Recherches Economiques et Sociales)
2012018, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES), revised 20 Oct 2012.
- LATZER, Hélène & MAYNERIS, Florian, 2012. "Income distribution and vertical comparative advantage. Theory and evidence," CORE Discussion Papers 2012034, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Hélène Latzer & Florian Mayneris, 2011. "Trade in quality and income distribution: an analysis of the enlarged EU market," Working Papers of BETA 2011-21, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
- Fabio Cerina & Francesco Mureddu, 2012.
"Agglomeration And Growth With Endogenous Expenditure Shares,"
Journal of Regional Science,
Wiley Blackwell, vol. 52(2), pages 324-360, 05.
- Fabio Cerina & Francesco Mureddu, 2008. "Agglomeration and Growth with Endogenous Expenditure Shares," Working Paper CRENoS 200820, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
- Pflüger, Michael & Tabuchi, Takatoshi, 2010. "The size of regions with land use for production," Regional Science and Urban Economics, Elsevier, vol. 40(6), pages 481-489, November.
- Fabio Cerina & Francesco Mureddu, 2010. "Is Agglomeration really Good for Growth? Global Efficiency, Interregional Equity and Uneven Growth," DEGIT Conference Papers c015_022, DEGIT, Dynamics, Economic Growth, and International Trade.
- Motamed, Mesbah J. & Florax, Raymond J.G.M. & Masters, William J., 2009. "Geography and Economic Transition: Global Spatial Analysis at the Grid Cell Level," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49589, Agricultural and Applied Economics Association.
- Fabio Cerina & Francesco Mureddu, 2011. "Structural Change and Growth in a NEG model," Working Paper CRENoS 201118, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wendy Shamier).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.