Agglomeration economies in European and American cities
AbstractWe consider two types of cities. In the European one the amenities are located at the city-center (like e.g. Paris or London) whereas in the American-type city the amenties are at the city-edge (like e.g. Detroit, Los Angeles). We first show that the unemployed reside at the vicinity of the city-center in the American-type city while they locate at the outskirts of the city in the European one. We then establish conditions for the endogeneous formation of monocentric European and American cities and compare them. It turns out that the employed workers are better off in European cities whereas the unemployed and firms are worse off, that land rent is cheaper in American cities and that the number of trips devoted to amenities and to work affect differently workers' utilities and firms' profits in the two cities.
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Bibliographic InfoPaper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 1999002.
Date of creation: 01 Jan 1999
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agglomeration; endogeneous location of workers and ﬁrms; location of amenities; urban unemployment.;
Find related papers by JEL classification:
- R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
- R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
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