Intercity Trade and Convergent versus Divergent Urban Growth
AbstractThe paper studies intercity trade and growth in an overlapping-generations economy where tradeable goods are produced using a composite of capital, raw labor and intermediates, and are combined in each city to produce a composite. The composite is used for consumption and investment. Tax-financed investment that affects commuting costs endogenizes city size. A combination of weak (strong) diminishing returns and strong (weak) market size effects can lead to increasing (decreasing) returns to scale. Autarkic urban growth may be parallel or divergent. Capital growth in the integrated economy has the same dynamic properties as its counterpart for an economy with autarkic cities but leads to national constant returns to scale.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Department of Economics, Tufts University in its series Discussion Papers Series, Department of Economics, Tufts University with number 0723.
Date of creation: 2008
Date of revision:
Contact details of provider:
Postal: Medford, MA 02155, USA
Phone: (617) 627-3560
Fax: (617) 627-3917
Web page: http://ase.tufts.edu/econ
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- Jonathan Eaton & Zvi Eckstein, 1994. "Cities and Growth: Theory and Evidence from france and Japan," Boston University - Institute for Economic Development 36, Boston University, Institute for Economic Development.
- Jonathan Eaton & Zvi Eckstein, 1994. "Cities and Growth: Theory and Evidence from France and Japan," NBER Working Papers 4612, National Bureau of Economic Research, Inc.
- Y Ioannides & Henry Overman, 2000.
"Spatial Evolution of the US Urban System,"
CEP Discussion Papers
dp0482, Centre for Economic Performance, LSE.
- Yannis M. Ioannides & Henry G. Overman, 2000. "Spatial Evolution of the US Urban System," Discussion Papers Series, Department of Economics, Tufts University 0018, Department of Economics, Tufts University.
- Ioannides, Yannis & Overman, Henry G., 2004. "Spatial evolution of the US urban system," Open Access publications from London School of Economics and Political Science http://eprints.lse.ac.uk/, London School of Economics and Political Science.
- Esteban Rossi-Hansberg & Mark L. J. Wright, 2007. "Urban Structure and Growth," Review of Economic Studies, Wiley Blackwell, vol. 74(2), pages 597-624, 04.
- Ventura, Jaume, 2005.
"Global View of Economic Growth,"
CEPR Discussion Papers
5059, C.E.P.R. Discussion Papers.
- Ioannides, Yannis M., 1994. "Product differentiation and economic growth in a system of cities," Regional Science and Urban Economics, Elsevier, vol. 24(4), pages 461-484, August.
- Jaume Ventura, 2005. "A Global View of Economic Growth," Working Papers 203, Barcelona Graduate School of Economics.
- Anas, Alex & Xiong, Kai, 2003.
"Intercity trade and the industrial diversification of cities,"
Journal of Urban Economics,
Elsevier, vol. 54(2), pages 258-276, September.
- Alex Anas & Kai Xiong, 2003. "Intercity Trade and the Industrial Diversification of Cities," Urban/Regional 0302003, EconWPA.
- Berliant, Marcus & Wang, Ping, 2003.
"Dynamic Urban Models: Agglomeration and Growth,"
1167, California Institute of Technology, Division of the Humanities and Social Sciences.
- Esteban Rossi-Hansberg & Mark L. J. Wright, 2007. "Urban Structure and Growth," Review of Economic Studies, Oxford University Press, vol. 74(2), pages 597-624.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Caroline Kalogeropoulos).
If references are entirely missing, you can add them using this form.