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Dynamic Urban Models: Agglomeration and Growth

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  • Berliant, Marcus
  • Wang, Ping

Abstract

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.

Suggested Citation

  • Berliant, Marcus & Wang, Ping, 2003. "Dynamic Urban Models: Agglomeration and Growth," Working Papers 1167, California Institute of Technology, Division of the Humanities and Social Sciences.
  • Handle: RePEc:clt:sswopa:1167
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    2. Duranton, Gilles, 2010. "Urban Growth: Trends Vs. Noise," Revista Galega de Economía, University of Santiago de Compostela. Faculty of Economics and Business., vol. 19(ex).
    3. Peng, Shin-Kun & Thisse, Jacques-Francois & Wang, Ping, 2006. "Economic integration and agglomeration in a middle product economy," Journal of Economic Theory, Elsevier, vol. 131(1), pages 1-25, November.
    4. Pei-Ju Liao & Ping Wang & Yin-Chi Wang & Chong K. Yip, 2020. "Fertility and Internal Migration," Review, Federal Reserve Bank of St. Louis, vol. 102(4), pages 429-445, October.
    5. Orlando Gomes, 2007. "The Dynamics of Growth and Migrations with Congestion Externalities," Economics Bulletin, AccessEcon, vol. 15(1), pages 1-8.
    6. Berliant, Marcus & Wang, Ping, 2008. "Urban growth and subcenter formation: A trolley ride from the Staples Center to Disneyland and the Rose Bowl," Journal of Urban Economics, Elsevier, vol. 63(2), pages 679-693, March.
    7. Mariateresa Ciommi & Gianluca Egidi & Rosanna Salvia & Sirio Cividino & Kostas Rontos & Luca Salvati, 2020. "Population Dynamics and Agglomeration Factors: A Non-Linear Threshold Estimation of Density Effects," Sustainability, MDPI, vol. 12(6), pages 1-19, March.
    8. Bode, Eckhardt, 2006. "Commuting, externalities, and the geographical sizes of metropolitan areas," Kiel Working Papers 1289, Kiel Institute for the World Economy (IfW Kiel).
    9. Yannis M. Ioannides, 2008. "Intercity Trade and Convergent versus Divergent Urban Growth," Discussion Papers Series, Department of Economics, Tufts University 0723, Department of Economics, Tufts University.
    10. Hsiao-Lan Liu & Hsin-Yi Lin & Shin-Kun Peng, 2010. "The spillover effects of R&D on manufacturing industry in Taiwan’s metropolitan areas," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 45(3), pages 519-546, December.
    11. repec:ebl:ecbull:v:15:y:2007:i:1:p:1-8 is not listed on IDEAS
    12. Mochamad Taufiq & Elia Ardyan & Naili Farida, 2019. "Interfirm Collaboration Cluster as Source of Competitiveness to Enhance Performance," International Journal of Management Science and Business Administration, Inovatus Services Ltd., vol. 5(6), pages 29-37, September.
    13. Rosanna Salvia & Gianluca Egidi & Luca Salvati & Jesús Rodrigo-Comino & Giovanni Quaranta, 2020. "In-Between ‘Smart’ Urban Growth and ‘Sluggish’ Rural Development? Reframing Population Dynamics in Greece, 1940–2019," Sustainability, MDPI, vol. 12(15), pages 1-18, July.
    14. Chung-Yi Tse, 2008. "Learning investment and industrial diversity in urban growth," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 11(2), pages 413-433, April.
    15. Gianluca Egidi & Giovanni Quaranta & Luca Salvati & Rosanna Salvia & Gimenez Morera Antonio, 2021. "Investigating density-dependent patterns of population growth in Southern Italy, 1861–2019," Letters in Spatial and Resource Sciences, Springer, vol. 14(1), pages 11-30, April.
    16. Fujishima, Shota, 2013. "Growth, agglomeration, and urban congestion," Journal of Economic Dynamics and Control, Elsevier, vol. 37(6), pages 1168-1181.
    17. Marcus Berliant, 2005. "Well Isn't That Spatial?! Handbook of Regional and Urban Economics: A View From Economic Theory," Urban/Regional 0503001, University Library of Munich, Germany, revised 08 Apr 2005.
    18. William R. Emmons & Jacob Haas & Christopher J. Neely, 2020. "Responses of International Central Banks to the COVID-19 Crisis," Review, Federal Reserve Bank of St. Louis, vol. 102(4), pages 338-384, October.
    19. Gilles Duranton, 2007. "Urban Evolutions: The Fast, the Slow, and the Still," American Economic Review, American Economic Association, vol. 97(1), pages 197-221, March.

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    More about this item

    Keywords

    agglomerative activity; Marshallian externalities; matching; urban growth;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory

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