Optimal cities with indivisibility in production and interactions between firms
A spatial model of cities is constructed by combining interaction costs between firms with indivisibility in production. The optimal allocation requires Pigouvian subsidies to firms and the externality version of the Henry George Theorem is obtained: at the optimal city size, the total Pigouvian subsidy equals the total differential land rent in a city. We also obtain conditions under which monocentric configuration is optimal and perform comparative statics concerning changes in various parameters on the optimal city size.
(This abstract was borrowed from another version of this item.)
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
When requesting a correction, please mention this item's handle: RePEc:eee:juecon:v:27:y:1990:i:1:p:46-59. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.