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Configuration of cities: the effects of congestion cost and government

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Author Info

  • Alonso Villar, Olga

Abstract

In this paper we have developed a model that explains the existence of metropolitan areas. We have obtained that increasing returns to scale and the existence of transportation cost are factors that favor agglomeration and, on the other hand, that congestion cost works against this agglomeration. Furthermore, the government can modify the values of several parameters and so it must decide what amount of resources to invest in congestion and transportation in order to reduce respective costs in such a way that society is better off.

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File URL: http://e-archivo.uc3m.es/bitstream/10016/7212/1/we961709.PDF
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Bibliographic Info

Paper provided by Universidad Carlos III de Madrid in its series Open Access publications from Universidad Carlos III de Madrid with number info:hdl:10016/7212.

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Handle: RePEc:ner:carlos:info:hdl:10016/7212

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Web page: http://www.uc3m.es

Related research

Keywords: Monopolistic competition; Centripetal forces; Centrifugal forces; Congestion cost;

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Cited by:
  1. Fujita, Masahisa & Mori, Tomoya, 2005. "Transport Development and the Evolution of Economic Geography," IDE Discussion Papers 21, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  2. Luca Ricci, 2006. "Uncertainty, Flexible Exchange Rates, and Agglomeration," Open Economies Review, Springer, vol. 17(2), pages 197-219, April.
  3. Pablo Brañas-Garza & Javier Rodero Cosano & John R. Presley, 2002. "The North-South divide and house price islands: the case of Córdoba (Spain)," European Journal of Housing Policy, Taylor and Francis Journals, vol. 2(1), pages 45-63, April.
  4. Antonio Ricci, Luca, 1999. "Economic geography and comparative advantage:: Agglomeration versus specialization," European Economic Review, Elsevier, vol. 43(2), pages 357-377, February.
  5. Alonso Villar, Olga, . "Spatial distribution of production and international trade," Open Access publications from Universidad Carlos III de Madrid info:hdl:10016/6018, Universidad Carlos III de Madrid.

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