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Productive Cities: Sorting, Selection, and Agglomeration

Listed author(s):
  • Kristian Behrens
  • Gilles Duranton
  • Frédéric Robert-Nicoud

Large cities produce more output per capita than small cities. This higher productivity may occur because more talented individuals sort into large cities, because large cities select more productive entrepreneurs and firms, or because of agglomeration economies. We develop a model of systems of cities that combines all three elements and suggests interesting complementarities between them. The model can replicate stylized facts about sorting, agglomeration, and selection in cities. It also generates Zipf's law for cities under empirically plausible parameter values. Finally, it provides a useful framework within which to reinterpret extant empirical evidence.

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File URL: http://dx.doi.org/10.1086/675534
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File URL: http://dx.doi.org/10.1086/675534
Download Restriction: Access to the online full text or PDF requires a subscription.

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Article provided by University of Chicago Press in its journal Journal of Political Economy.

Volume (Year): 122 (2014)
Issue (Month): 3 ()
Pages: 507-553

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Handle: RePEc:ucp:jpolec:doi:10.1086/675534
Contact details of provider: Web page: http://www.journals.uchicago.edu/JPE/

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