articles: Capital cities: When do they stop growing?
AbstractThis article is an attempt to explain a capital city's size. We assume away explanations such as exploitation of the capital city's hinterland. Instead, we emphasise the role of the localisation of government activity (i.e., administration or legislation) in the capital city for both the capital city economy and the hinterland economy. We assume in the model that larger regions benefit from agglomeration economies. We discuss the interaction of those agglomeration economies with an agglomeration diseconomy specific to the capital city. Under certain conditions, a stable population distribution between the capital city and its hinterland emerges where neither region captures the entire population. We also analyse the comparative statics properties of this stable equilibrium.
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Bibliographic InfoArticle provided by Springer in its journal Papers in Regional Science.
Volume (Year): 81 (2002)
Issue (Month): 1 ()
Note: Received: 6 June 2000
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Web page: http://link.springer.de/link/service/journals/10110/index.htm
Find related papers by JEL classification:
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
- R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock
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