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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. Gilad Aharonovitz, 2011. "Knowledge-based spatial differences in economic activity, job related migration and housing related migration," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 46(1), pages 159-188, February.
    3. repec:ebl:ecbull:v:15:y:2007:i:1:p:1-8 is not listed on IDEAS
    4. 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).
    5. Clio Ciaschini & Kostas Rontos & Francesco Chelli & Marianna Cucci & Filomena Maggino & Luca Salvati, 2023. "Testing Density-Dependent and Path-Dependent Population Dynamics in Greece with Spatial Quantile and Geographically Weighted Regressions," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 170(2), pages 609-635, November.
    6. 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.
    7. 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.
    8. 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.
    9. 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.
    10. 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.
    11. Orlando Gomes, 2007. "The Dynamics of Growth and Migrations with Congestion Externalities," Economics Bulletin, AccessEcon, vol. 15(1), pages 1-8.
    12. 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.
    13. 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.
    14. 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.
    15. Fujishima, Shota, 2013. "Growth, agglomeration, and urban congestion," Journal of Economic Dynamics and Control, Elsevier, vol. 37(6), pages 1168-1181.
    16. 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.
    17. 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.
    18. Bode, Eckhardt, 2006. "Commuting, externalities, and the geographical sizes of metropolitan areas," Kiel Working Papers 1289, Kiel Institute for the World Economy.
    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.
    20. Margherita Carlucci & Barbara Ermini & Gloria Polinesi & Luca Salvati, 2023. "Toward a ‘reverse density dividend’? Population growth and socioeconomic evolution of Greek districts before and after crisis," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(6), pages 5137-5155, December.
    21. 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.
    22. Luca Salvati, 2024. "Simple geographies for complex problems? Revisiting long-term urbanization and settlement population mismatches using elasticity indicators and context-based nonparametric analysis," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 72(2), pages 513-533, February.
    23. Margherita Carlucci & Gloria Polinesi & Luca Salvati, 2023. "Agglomeration vs amenities? Unraveling the latent engine of growth in metropolitan Greece," Environment and Planning B, , vol. 50(9), pages 2491-2509, November.
    24. 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.

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    Keywords

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    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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