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Urban growth and subcenter formation: A trolley ride from the Staples Center to Disneyland and the Rose Bowl

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  • Berliant, Marcus
  • Wang, Ping

Abstract

The long-term trends of urbanization suggest: not only have more cities formed, but the leading metropolises have grown larger, with a number of peripheral subcenters developing over time. Conventional models of urban growth are limited, in that commuting cost and congestion eventually result in decreasing returns in a monocentric city as population becomes very large. We construct a general-equilibrium model with dynamic interactions between spatial agglomeration and urban development, driven by location-dependent knowledge spillovers. Our contribution allows endogenous development of subcenters to capture benefits from knowledge spillovers and offset diminishing returns from urban congestion, thus permitting more sustained city growth.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 2770.

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Date of creation: 17 Apr 2007
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Handle: RePEc:pra:mprapa:2770

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Keywords: Core-Periphery Urban Structure; Agglomerative Production Activity; Endogenous Formation of Cities;

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References

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Citations

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Cited by:
  1. MOSSAY, Pascal & PICARD, Pierre M., . "On spatial equilibria in a social interaction model," CORE Discussion Papers RP -2436, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  2. Akamatsu, Takashi & Takayama, Yuki & Ikeda, Kiyohiro, 2009. "Spatial Discounting, Fourier, and Racetrack Economy: A Recipe for the Analysis of Spatial Agglomeration Models," MPRA Paper 21738, University Library of Munich, Germany, revised 25 Dec 2009.
  3. Jaume Masip Tresserra, 2012. "Does Employment Density death? Towards a new integrated methodology to identify and characterize Sub-Centres," ERSA conference papers ersa12p71, European Regional Science Association.
  4. Elena G. Irwin, 2010. "New Directions For Urban Economic Models Of Land Use Change: Incorporating Spatial Dynamics And Heterogeneity," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 65-91.
  5. Jaume Masip Tresserra, 2012. "Identifying the Employment and Population Centers at regional and metropolitan scale: The Case of Catalonia and Barcelona," ERSA conference papers ersa12p70, European Regional Science Association.
  6. Picard, Pierre M. & Tabuchi, Takatoshi, 2013. "On microfoundations of the city," Journal of Economic Theory, Elsevier, vol. 148(6), pages 2561-2582.
  7. Steven Craig & Janet Kohlhase & Adam Perdue, 2014. "Empirical Polycentricity: The Complex Relationship Between Employment Centers," Working Papers 2014-055-59, Department of Economics, University of Houston.
  8. Wall, Howard J., 2011. "The Employment Cycles of Neighboring Cities," MPRA Paper 29410, University Library of Munich, Germany.
  9. Ajay Agarwal & Genevieve Giuliano & Christian Redfearn, 2012. "Strangers in our midst: the usefulness of exploring polycentricity," The Annals of Regional Science, Springer, vol. 48(2), pages 433-450, April.
  10. Dominique Prunetti & Alexandre Muzy & Eric Innocenti & Xavier Pieri, 2014. "Utility-based Multi-agent System with Spatial Interactions: The Case of Virtual Estate Development," Computational Economics, Society for Computational Economics, vol. 43(3), pages 271-299, March.

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