Urbanization and growth
In a simple urban economics framework, we aim at highlighting how the trade-off between optimal and equilibrium city size behaves when introducing dynamic human capital externalities beside the classical congestion externalities. Our purpose is to show that there are dynamic gains from oversized cities. To this end, we assume that productivity depends on human capital, which is solely accumulated in cities, such that urbanization is the engine of growth. In an empirical illustration, we highlight the link between urbanization and human capital accumulation, by focusing on cross-country panel data.
|Date of creation:||00 Sep 2002|
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3606235, Harvard University Department of Economics.
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University of Chicago Press, vol. 94(5), pages 1002-37, October.
- Funkhouser, Edward, 1998. "Changes in the returns to education in Costa Rica," Journal of Development Economics, Elsevier, vol. 57(2), pages 289-317.
- Davis, James C. & Henderson, J. Vernon, 2003. "Evidence on the political economy of the urbanization process," Journal of Urban Economics, Elsevier, vol. 53(1), pages 98-125, January.
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- Galor, Oded & Tsiddon, Daniel, 1997. "The Distribution of Human Capital and Economic Growth," Journal of Economic Growth, Springer, vol. 2(1), pages 93-124, March.
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