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Growth, agglomeration, and urban congestion

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  • Fujishima, Shota
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    Abstract

    We consider a microfounded urban growth model with two regions and a mass of mobile workers to study interactions among growth, agglomeration, and urban congestion. Unlike previous research in the urban growth literature, we formulate the model as a one-shot game and take an evolutionary game-theoretic approach for stability analysis. Our approach enables us to analyze stability of nonstationary equilibria in which populations of each region are not constant over time. We show that if both the expenditure share for housing and inter-regional transport cost are small, a stable stationary equilibrium does not exist. Moreover, in such a case, we show that there can exist a stable nonstationary equilibrium in which mobile workers agglomerate in one region at first but some of them migrate to the other region later. We argue that such a nonstationary location pattern is related to return migration.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Economic Dynamics and Control.

    Volume (Year): 37 (2013)
    Issue (Month): 6 ()
    Pages: 1168-1181

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    Handle: RePEc:eee:dyncon:v:37:y:2013:i:6:p:1168-1181

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    Web page: http://www.elsevier.com/locate/jedc

    Related research

    Keywords: Growth; Agglomeration; Urban congestion; Economic geography; Return migration; Population game; Evolutionary game theory;

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    Cited by:
    1. Takumi Naito & Laixun Zhao, 2014. "Capital Accumulation through Studying Abroad and Return Migration," Discussion Paper Series DP2014-06, Research Institute for Economics & Business Administration, Kobe University, revised Mar 2014.

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