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Urban growth and subcenter formation: A trolley ride from the Staples Center to Disneyland and the Rose Bowl

  • Berliant, Marcus
  • Wang, Ping

The long-term trends of urbanization suggest: not only have more cities formed, but the leading metropolises have grown larger, with a number of peripheral subcenters developing over time. Conventional models of urban growth are limited, in that commuting cost and congestion eventually result in decreasing returns in a monocentric city as population becomes very large. We construct a general-equilibrium model with dynamic interactions between spatial agglomeration and urban development, driven by location-dependent knowledge spillovers. Our contribution allows endogenous development of subcenters to capture benefits from knowledge spillovers and offset diminishing returns from urban congestion, thus permitting more sustained city growth.

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Article provided by Elsevier in its journal Journal of Urban Economics.

Volume (Year): 63 (2008)
Issue (Month): 2 (March)
Pages: 679-693

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Handle: RePEc:eee:juecon:v:63:y:2008:i:2:p:679-693
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622905

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