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Dynamic Urban Models: Agglomeration and Growth

  • Berliant, Marcus
  • Wang, Ping

Theoretical models of urban growth are surveyed in a common framework. Exogenous growth models, where growth in some capital stock as a function of investment is assumed, are examined first. Then endogenous growth models, where use of some factor by a firm increases the productivity of other firms, are studied. These are all modes with perfect competition among agents. Next, models with imperfect competition are discussed. There are two varieties: those employing a monopolistic competition approach to product differentiation, and those employing explicit externalities but lacking some markets. Finally, avenues for future research are explored. Correlations between agglomeration and growth in the various models and data are compared.

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Paper provided by California Institute of Technology, Division of the Humanities and Social Sciences in its series Working Papers with number 1167.

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Length: 49 pages
Date of creation: May 2003
Date of revision:
Publication status: Published:
Handle: RePEc:clt:sswopa:1167
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