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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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File URL: http://qed.econ.queensu.ca/working_papers/papers/qed_wp_875.pdf
File Function: First version 1993
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Bibliographic Info

Paper provided by Queen's University, Department of Economics in its series Working Papers with number 875.

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Date of creation: Jan 1993
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Handle: RePEc:qed:wpaper:875

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Cited by:
  1. Dascher, Kristof, 2013. "Foreign Direct Investment into Open and Closed Cities," MPRA Paper 49197, University Library of Munich, Germany.
  2. Dascher, K., 2000. "Trade, FDI and Congestion: the Small and Very Open Economy," Papers 00/09, College Dublin, Department of Political Economy-.

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