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Evolving Cityscapes: Agglomeration and Specialization with Mobile Labor and Vertical Linkages

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Author Info
Souleymane Coulibaly

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Abstract

In "new economic geography" models, spatial concentration typically arises either because of worker mobility or because of vertical linkages among firms. We examine a setup that combines those two approaches in conjunction with local congestion costs. We find that, as trade costs are lowered, the spatial concentration of total activity ("agglomeration") follows an inverse u-shaped evolution, while the degree of specialization of locations increases. The evolution of spatial configurations accommodated by this model is consistent with changes in sectorial employment patterns within US metropolitan areas over the 1850-1990 period.

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Publisher Info
Paper provided by Université de Lausanne, Faculté des HEC, DEEP in its series Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) with number 04.17.

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Length: 43 pages
Date of creation: Dec 2004
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Handle: RePEc:lau:crdeep:04.17

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Postal: Université de Lausanne, Faculté des HEC, DEEP, Internef, CH-1015 Lausanne
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Fax: ++41 21 692.33.65
Web page: http://www.hec.unil.ch/deep/publications-english/e-cahiers.htm

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Related research
Keywords: agglomeration; specialization; congestion cost; input-output linkages;

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Find related papers by JEL classification:
F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
R12 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
R15 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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  7. Abdel-Rahman, Hesham M., 1996. "When do cities specialize in production?," Regional Science and Urban Economics, Elsevier, vol. 26(1), pages 1-22, February. [Downloadable!] (restricted)
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  9. Masahisa Fujita & Paul Krugman & Anthony J. Venables, 2001. "The Spatial Economy: Cities, Regions, and International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262561476.
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