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Agricultural surplus, division of labour and the emergence of cities, a spatial general equilibrium model

Listed author(s):
  • Gilles Spielvogel


    (DIAL, IEP-Paris)

(english) In this paper, we expose the economic conditions of cities emergence in a spatial general equilibrium framework. The presence of increasing returns based on the division of labour, transport costs and the possible existence of an agricultural surplus are enough to generate different possible urban equilibrium. A city may not be sustainable if internal transport costs are too high. On the other hand, a persistent migratory pressure may exist between the city and the surrounding rural hinterland if the urban labour market is saturated. In addition, we study the conditions of stability of the monocentric equilibrium in the different cases. _________________________________ (français) Dans ce papier, nous exposons les conditions économiques d’émergence des villes dans le cadre d’un modèle d’équilibre général spatial. L’existence de rendements croissants basés sur la division du travail, de coûts de transport et la présence éventuelle d’un surplus agricole conduisent à différentes possibilités d’équilibre urbain. En raison de la contrainte de subsistance, il est possible qu’aucune ville ne soit soutenable si les coûts de transport internes sont trop élevés. D’un autre côté, la contrainte d’emploi urbain débouche sur la saturation de tout ou partie du marché du travail urbain et à la persistance d’une pression migratoire entre campagne et ville. Par ailleurs, nous étudions les conditions de stabilité du système urbain monocentrique dans les différents cas d’équilibre.

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File Function: First version, 2003
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Paper provided by DIAL (Développement, Institutions et Mondialisation) in its series Working Papers with number DT/2003/06.

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Length: 26 pages
Date of creation: Jul 2003
Handle: RePEc:dia:wpaper:dt200306
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