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Capitalization of Productivity Growth in Urban Land Rent

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  • John M. Hartwick

Abstract

The first order effect of a productivity increment in the output sector of a monocentric city which increase wages in the city is exactly capitalized in the increment in land rent in the city. We observe this result in the "open city" model in which a worker's utility level in city i is determined outside of city i.

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  • John M. Hartwick, 1993. "Capitalization of Productivity Growth in Urban Land Rent," Working Paper 875, Economics Department, Queen's University.
    • Handle: RePEc:qed:wpaper:875
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    File URL: http://qed.econ.queensu.ca/working_papers/papers/qed_wp_875.pdf
    File Function: First version 1993
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    Cited by:

    1. Kristof Dascher, 2015. "Foreign Direct Investment into Open and Closed Cities," Scottish Journal of Political Economy, Scottish Economic Society, vol. 62(2), pages 191-210, May.
    2. Kristof Dascher, 2000. "Trade, FDI, and Congestion - The small and very open Economy," Working Papers 200009, School of Economics, University College Dublin.

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