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Is Agglomeration Desirable?

Author

Listed:
  • Fabien Candau

    (CATT - Centre d'Analyse Théorique et de Traitement des données économiques - UPPA - Université de Pau et des Pays de l'Adour)

Abstract

By introducing heterogeneity between high-skill mobile and low-skill immobile workers in a model with land rent and commuting costs, we develop a new model in the field of New Economic Geography. This model, which can reveal a dispersion-agglomeration-dispersion configuration when trade becomes freer, is used to compare, via the Pareto criterion, the two possible market outcomes, i.e. agglomeration and dispersion. When these equilibria can be ranked, it is shown that dispersion can be a Pareto-efficient outcome.

Suggested Citation

  • Fabien Candau, 2011. "Is Agglomeration Desirable?," Post-Print hal-01844382, HAL.
    • Handle: RePEc:hal:journl:hal-01844382
    DOI: 10.2307/41615480
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    Cited by:

    1. Fabien Candau & Elisa Dienesch, 2015. "Spatial distribution of skills and regional trade integration," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(2), pages 451-488, March.
    2. Fabien Candau & Marc Fleurbaey, 2011. "Agglomeration and Welfare with Heterogeneous Preferences," Open Economies Review, Springer, vol. 22(4), pages 685-708, September.
    3. Fabien Candau, 2013. "Trade, FDI and Migration," International Economic Journal, Taylor & Francis Journals, vol. 27(3), pages 441-461, September.
    4. Candau, Fabien & Gbandi, Tchapo, 2019. "Trade and institutions: explaining urban giants," Journal of Institutional Economics, Cambridge University Press, vol. 15(6), pages 1017-1035, December.
    5. Fabien Candau & Elisa Dienesch, 2015. "Spatial distribution of skills and regional trade integration," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(2), pages 451-488, March.

    More about this item

    Keywords

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    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

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