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Trade and the structure of cities

Author

Listed:
  • Jean Cavailhes

    (INRA-CESAER)

  • Carl Gaigne

    (INRA-ESR)

  • Jacques-Rrancois Thisse

    (CORE, Universite catholique de Louvain, Institute of Economic Analysis, Kyoto University, PSE, and CEPR.)

Abstract

Our purpose is to investigate how the interplay between trade, commuting and communication costs shapes the economy at both the interregional and intraurban levels. Specifically, we study how economic integration affects the internal structure of cities and show how decentralizing the production and consumption of goods in secondary employment centers allows firms located in a large city to maintain their predominance. Several new results in both economic geography and urban economics are established, which all agree with empirical evidence.

Suggested Citation

  • Jean Cavailhes & Carl Gaigne & Jacques-Rrancois Thisse, 2006. "Trade and the structure of cities," KIER Working Papers 623, Kyoto University, Institute of Economic Research.
  • Handle: RePEc:kyo:wpaper:623
    as

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    File URL: http://www.kier.kyoto-u.ac.jp/DP/DP623.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    city structure; secondary business centers; commuting costs; trade costs; communication costs;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns

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