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Growth, agglomeration, and urban congestion

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  • Fujishima, Shota

Abstract

We consider a microfounded urban growth model with two regions and a mass of mobile workers to study interactions among growth, agglomeration, and urban congestion. Unlike previous research in the urban growth literature, we formulate the model as a one-shot game and take an evolutionary game-theoretic approach for stability analysis. Our approach enables us to analyze stability of nonstationary equilibria in which populations of each region are not constant over time. We show that if both the expenditure share for housing and inter-regional transport cost are small, a stable stationary equilibrium does not exist. Moreover, in such a case, we show that there can exist a stable nonstationary equilibrium in which mobile workers agglomerate in one region at first but some of them migrate to the other region later. We argue that such a nonstationary location pattern is related to return migration.

Suggested Citation

  • Fujishima, Shota, 2013. "Growth, agglomeration, and urban congestion," Journal of Economic Dynamics and Control, Elsevier, vol. 37(6), pages 1168-1181.
  • Handle: RePEc:eee:dyncon:v:37:y:2013:i:6:p:1168-1181
    DOI: 10.1016/j.jedc.2013.02.001
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    References listed on IDEAS

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    Cited by:

    1. Takumi Naito & Laixun Zhao, 2014. "Capital Accumulation through Studying Abroad and Return Migration," Discussion Paper Series DP2014-06, Research Institute for Economics & Business Administration, Kobe University, revised Mar 2014.
    2. Klarl, Torben Alexander, 2015. "Urban-rural migration and congestion costs revisited: is there a triple dividend for cities in developing countries?," Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112829, Verein für Socialpolitik / German Economic Association.

    More about this item

    Keywords

    Growth; Agglomeration; Urban congestion; Economic geography; Return migration; Population game; Evolutionary game theory;

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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