Task Trade and the Size Distribution of Cities
Abstractã€€ã€€ Taking account of the increasing importance of task trade in urban contexts, this paper provides a model of a system of cities in which ex ante identical locations specialize in tasks that differ in their skill intensity, resulting in a unique size distribution of cities. The necessary and sufficient condition for a power law including Zipf's law is derived, and a quantitative analysis shows that the model is consistent with the size distribution of U.S. cities. A welfare analysis is also conducted, suggesting excess agglomeration with sizable welfare loss under laissez-faire.
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Bibliographic InfoPaper provided by CIRJE, Faculty of Economics, University of Tokyo in its series CIRJE F-Series with number CIRJE-F-886.
Length: 40 pages
Date of creation: Apr 2013
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-04-27 (All new papers)
- NEP-GEO-2013-04-27 (Economic Geography)
- NEP-URE-2013-04-27 (Urban & Real Estate Economics)
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