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Agricultural surplus, division of labour and the emergence of cities: A spatial general equilibrium model

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Author Info
Gilles Spielvogel () (DIAL, Paris)

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Abstract

n this paper, we expose the economic conditions of cities emergence in a spatial general equilibrium framework. The presence of increasing returns based on the division of labour, transport costs and the possible existence of an agricultural surplus are enough to generate different possible urban equilibrium. A city may not be sustainable if internal transport costs are too high. On the other hand, a persistent migratory pressure may exist between the city and the surrounding rural hinterland if the urban labour market is saturated. In addition, we study the conditions of stability of the monocentric equilibrium in the different cases.

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Paper provided by Ibero-America Institute for Economic Research in its series Ibero America Institute for Econ. Research (IAI) Discussion Papers with number 108.

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Length: 26 pages
Date of creation: 12 Jul 2005
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Handle: RePEc:got:iaidps:108

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Related research
Keywords: Urbanization division of labour agricultural surplus monocentric urban system

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Find related papers by JEL classification:
R13 - Urban, Rural, and Regional Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
R14 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Land Use Patterns
O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Regional, Urban, and Rural Analyses

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