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On the Endogenous Formation of Secondary Employment Centers in a City

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Author Info

  • FUJITA, Masahisa

    (Kyoto University and University of Pennsylvania)

  • THISSE, Jacques-François

    ()
    (CORE, Université catholique de Louvain, B-1348 Louvain-la-Neuve, Belgium)

  • ZENOU, Yves

    (CORE, Université catholique de Louvain, B-1348 Louvain-la-Neuve, Belgium and ERMES, Université de Paris II-Assas)

Abstract

A new approach is proposed to explain the formation of secondary employment centers in a monocentric city. Specifically, a large firm considers locating a new plant in a city where none of the existing businesses has a significative share of the labor force, so that its location can be viewed as a secondary employment center. The choice of this location results from the interplay between the process of competition on both the labor and land markets and the technological externalities generated by the proximity of the city center where other firms are located.

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Bibliographic Info

Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 1995063.

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Date of creation: 01 Nov 1995
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Handle: RePEc:cor:louvco:1995063

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Keywords: Formation of Secondary Employment Centers;

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  1. Wieand, Kenneth F., 1987. "An extension of the monocentric urban spatial equilibrium model to a multicenter setting: The case of the two-center city," Journal of Urban Economics, Elsevier, vol. 21(3), pages 259-271, May.
  2. ZENOU, Yves & SMITH, Tony E., 1994. "Efficiency Wages, Involuntary Unemployment and Urban Spatial Structure," CORE Discussion Papers 1994076, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  3. Small Kenneth A. & Song Shunfeng, 1994. "Population and Employment Densities: Structure and Change," Journal of Urban Economics, Elsevier, vol. 36(3), pages 292-313, November.
  4. Stahl, Konrad, 1987. "Therories of urban business location," Handbook of Regional and Urban Economics, in: E. S. Mills (ed.), Handbook of Regional and Urban Economics, edition 1, volume 2, chapter 19, pages 759-820 Elsevier.
  5. Kim, Sunwoong, 1991. "Heterogeneity of labor markets and city size in an open spatial economy," Regional Science and Urban Economics, Elsevier, vol. 21(1), pages 109-126, May.
  6. White, Michelle J., 1976. "Firm suburbanization and urban subcenters," Journal of Urban Economics, Elsevier, vol. 3(4), pages 323-343, October.
  7. Eberts, Randall W., 1981. "An empirical investigation of intraurban wage gradients," Journal of Urban Economics, Elsevier, vol. 10(1), pages 50-60, July.
  8. Helsley, Robert W. & Sullivan, Arthur M., 1991. "Urban subcenter formation," Regional Science and Urban Economics, Elsevier, vol. 21(2), pages 255-275, July.
  9. McMillen, Daniel P. & Singell, Larry Jr., 1992. "Work location, residence location, and the intraurban wage gradient," Journal of Urban Economics, Elsevier, vol. 32(2), pages 195-213, September.
  10. White, Michelle J., 1988. "Location choice and commuting behavior in cities with decentralized employment," Journal of Urban Economics, Elsevier, vol. 24(2), pages 129-152, September.
  11. Jaffe, A.B. & Trajtenberg, M., 1992. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," Papers 14-92, Tel Aviv.
  12. Madden, Janice Fanning, 1985. "Urban wage gradients: Empirical evidence," Journal of Urban Economics, Elsevier, vol. 18(3), pages 291-301, November.
  13. J.V. Henderson, 1972. "The Sizes and Types of Cities," Working Papers 75, Queen's University, Department of Economics.
  14. Fujita, Masahisa & Ogawa, Hideaki, 1982. "Multiple equilibria and structural transition of non-monocentric urban configurations," Regional Science and Urban Economics, Elsevier, vol. 12(2), pages 161-196, May.
  15. Yinger, John, 1992. "City and suburb: Urban models with more than one employment center," Journal of Urban Economics, Elsevier, vol. 31(2), pages 181-205, March.
  16. Black, Dan A & Hoyt, William H, 1989. "Bidding for Firms," American Economic Review, American Economic Association, vol. 79(5), pages 1249-56, December.
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