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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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Author Info
Berliant, Marcus
Wang, Ping

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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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File URL: http://mpra.ub.uni-muenchen.de/2770/
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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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Related research
Keywords: Core-Periphery Urban Structure Agglomerative Production Activity Endogenous Formation of Cities

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Find related papers by JEL classification:
R12 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory

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    Other versions:
  3. Eaton, Jonathan & Eckstein, Zvi, 1997. "Cities and growth: Theory and evidence from France and Japan," Regional Science and Urban Economics, Elsevier, vol. 27(4-5), pages 443-474, August. [Downloadable!] (restricted)
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  11. Anas, Alex & Rhee, Hyok-Joo, 2006. "Curbing excess sprawl with congestion tolls and urban boundaries," Regional Science and Urban Economics, Elsevier, vol. 36(4), pages 510-541, July. [Downloadable!] (restricted)
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    Other versions:
  13. Fujita, Masahisa & Krugman, Paul, 1995. "When is the economy monocentric?: von Thunen and Chamberlin unified," Regional Science and Urban Economics, Elsevier, vol. 25(4), pages 505-528, August. [Downloadable!] (restricted)
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    Other versions:
  15. Robert E. Lucas & Esteban Rossi-Hansberg, 2002. "On the Internal Structure of Cities," Econometrica, Econometric Society, vol. 70(4), pages 1445-1476, July. [Downloadable!] (restricted)
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  17. Jan K. Brueckner, 2005. "Urban Growth Boundaries: An Effective Second-Best Remedy for Unpriced Traffic Congestion?," Working Papers 050610, University of California-Irvine, Department of Economics. [Downloadable!]
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    Other versions:
  19. McMillen, Daniel P. & Smith, Stefani C., 2003. "The number of subcenters in large urban areas," Journal of Urban Economics, Elsevier, vol. 53(3), pages 321-338, May. [Downloadable!] (restricted)
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    Other versions:
  26. Robert E. Lucas, Jr., 1989. "On the Mechanics of Economic Development," NBER Reprints 1176, National Bureau of Economic Research, Inc.
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  27. Palivos, Theodore & Wang, Ping, 1996. "Spatial agglomeration and endogenous growth," Regional Science and Urban Economics, Elsevier, vol. 26(6), pages 645-669, December. [Downloadable!] (restricted)
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