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Urban Structures with Forward and Backward Linkages

Author

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  • Pascal Mossay

    (Newcastle University, United Kingdom)

  • Pierre M. Picard

    (CREA, Université du Luxembourg)

  • Takatoshi Tabuchi

    (University of Tokyo, Japan)

Abstract

We study urban structures driven by demand and vertical linkages in the presence of increasing returns to scale. Individuals consume local urban varieties and firms use these varieties to produce a national good. We prove the existence of a spatial equilibrium and obtain an invariance result according to which more intense demand or vertical linkages have the same effect on the urban structure as lower commuting costs. Various urban configurations can emerge exhibiting a mono- centric, an integrated, a duocentric, or a partially integrated city structure. We discuss the role of commuting and transport costs, intensities of demand and vertical linkages, and urbanization in affecting these patterns. We show that multiple equilibria may arise in equilibrium involving the monocentric city and up to a couple of duocentric and partially integrated structures.

Suggested Citation

  • Pascal Mossay & Pierre M. Picard & Takatoshi Tabuchi, 2017. "Urban Structures with Forward and Backward Linkages," DEM Discussion Paper Series 17-22, Department of Economics at the University of Luxembourg.
    • Handle: RePEc:luc:wpaper:17-22
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    File URL: https://hdl.handle.net/10993/39179
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    Cited by:

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    3. Boucekkine, Raouf & Seegmuller, Thomas & Venditti, Alain, 2021. "Advances in growth and macroeconomic dynamics: In memory of Carine Nourry," Mathematical Social Sciences, Elsevier, vol. 112(C), pages 1-6.
    4. Osawa, Minoru & Akamatsu, Takashi, 2019. "Emergence of Urban Landscapes: Equilibrium Selection in a Model of Internal Structure of the Cities," MPRA Paper 92395, University Library of Munich, Germany.
    5. Osawa, Minoru & Akamatsu, Takashi, 2020. "Equilibrium refinement for a model of non-monocentric internal structures of cities: A potential game approach," Journal of Economic Theory, Elsevier, vol. 187(C).
    6. Yoon Sang Moon, 2022. "Internal structure of consumer cities: Core and subcenters," Journal of Regional Science, Wiley Blackwell, vol. 62(5), pages 1250-1273, November.
    7. Garrido-da-Silva, Liliana & Castro, Sofia B.S.D. & Correia-da-Silva, João, 2022. "Location of housing and industry around city centre amenities," Regional Science and Urban Economics, Elsevier, vol. 95(C).

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    More about this item

    Keywords

    Urban spatial structure; demand and vertical linkages; monopolistic competition; land;
    All these keywords.

    JEL classification:

    • 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
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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