Matching externalities and inventive productivity
This paper generalizes and extends the labor market search and matching model of Berliant, Reed, and Wang (2006). In this model, the density of cities is determined endogenously, but the matching process becomes more efficient as density increases. As a result, workers become more selective in their matches, and this raises average productivity (the intensive margin). Despite being more selective, the search process is more rapid so that workers spend more time in productive matches (the extensive margin). The effect of an exogenous increase in land area on productivity depends on the sensitivity of the matching function and congestion costs to changes in density.
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- Marcus Berliant & Robert R. Reed III & Ping Wang, 2004.
"Knowledge Exchange, Matching, and Agglomeration,"
0405007, EconWPA, revised 03 Dec 2004.
- Marcus Berliant & Robert R. Reed III & Ping Wang, 2000. "Knowledge Exchange, Matching, and Agglomeration," Econometric Society World Congress 2000 Contributed Papers 0261, Econometric Society.
- Marcus Berliant, 2003. "Knowledge Exchange, Matching, and Agglomeration," Theory workshop papers 505798000000000026, UCLA Department of Economics.
- Marcus Berliant & Robert R Reed & Ping Wang, 2003. "Knowledge Exchange, Matching, and Agglomeration," Levine's Bibliography 666156000000000395, UCLA Department of Economics.
- Marcus Berliant & Robert R. Reed III & Ping Wang, 2005. "Knowledge Exchange, Matching, and Agglomeration," Urban/Regional 0506013, EconWPA, revised 07 Jul 2005.
- Marcus Berliant & Robert R. Reed, III & Ping Wang, 2000. "Knowledge exchange, matching, and agglomeration," Discussion Paper / Institute for Empirical Macroeconomics 135, Federal Reserve Bank of Minneapolis.
- Shimer, R. & Smith, L., 1997.
"Assortative Matching and Search,"
97-2a, Massachusetts Institute of Technology (MIT), Department of Economics.
- Ken Burdett & Randall Wright, 1998.
"Two-Sided Search with Nontransferable Utility,"
Review of Economic Dynamics,
Elsevier for the Society for Economic Dynamics, vol. 1(1), pages 220-245, January.
- Mark Bagnoli & Ted Bergstrom, 1994. "Log-Concave Utility and its Applications," Microeconomics 9410002, EconWPA.
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