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Technological Progress and the Urbanization Process


  • Xie Danyang

    () (Hong Kong University of Science and Technology)


I build a model with a microfoundation to understand how productivity changes in the manufacturing and the agricultural sectors impact the relative size of a city and the surrounding rural area, both in terms of physical area and population. I also examine rural-urban differentials in land rentals. I find that the "Green Revolution" is more important than the Industrial Revolution in terms of the impact on the urbanization process. Government policies on the optimal sizes of cities are discussed.

Suggested Citation

  • Xie Danyang, 2008. "Technological Progress and the Urbanization Process," The B.E. Journal of Macroeconomics, De Gruyter, vol. 8(1), pages 1-25, May.
  • Handle: RePEc:bpj:bejmac:v:8:y:2008:i:1:n:16

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    References listed on IDEAS

    1. Kiminori Matsuyama, 1991. "Increasing Returns, Industrialization, and Indeterminacy of Equilibrium," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 617-650.
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    3. Koichi Futagami & Shingo Ishiguro, 2004. "Signal-extracting education in an overlapping generations model," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 24(1), pages 129-146, July.
    4. Boldrin, Michele, 1992. "Dynamic externalities, multiple equilibria, and growth," Journal of Economic Theory, Elsevier, vol. 58(2), pages 198-218, December.
    5. Glomm, Gerhard & Ravikumar, B., 1996. "Endogenous public policy and multiple equilibria," European Journal of Political Economy, Elsevier, vol. 11(4), pages 653-662, April.
    6. Manisha Chakrabarty & Anke Schmalenbach, 2002. "The Effect of Current Income on Aggregate Consumption," The Economic and Social Review, Economic and Social Studies, vol. 33(3), pages 297-317.
    7. Costas Azariadis & Luisa Lambertini, 2003. "Endogenous Debt Constraints in Lifecycle Economies," Review of Economic Studies, Oxford University Press, vol. 70(3), pages 461-487.
    8. Samwick, Andrew A., 1998. "Tax Reform and Target Saving," National Tax Journal, National Tax Association, vol. 51(3), pages 621-635, September.
    9. Cass, David & Shell, Karl, 1983. "Do Sunspots Matter?," Journal of Political Economy, University of Chicago Press, vol. 91(2), pages 193-227, April.
    10. Palivos, Theodore, 2001. "Social norms, fertility and economic development," Journal of Economic Dynamics and Control, Elsevier, vol. 25(12), pages 1919-1934, December.
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    Cited by:

    1. Wang, Ping & Xie, Danyang, 2014. "Housing Dynamics: Theory Behind Empirics," MPRA Paper 59057, University Library of Munich, Germany.

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