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Urban growth and subcenter formation: A trolley ride from the Staples Center to Disneyland and the Rose Bowl

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Listed author(s):
  • Berliant, Marcus
  • Wang, Ping

Abstract

The long-term trends of urbanization suggest: not only have more cities formed, but the leading metropolises have grown larger, with a number of peripheral subcenters developing over time. Conventional models of urban growth are limited, in that commuting cost and congestion eventually result in decreasing returns in a monocentric city as population becomes very large. We construct a general-equilibrium model with dynamic interactions between spatial agglomeration and urban development, driven by location-dependent knowledge spillovers. Our contribution allows endogenous development of subcenters to capture benefits from knowledge spillovers and offset diminishing returns from urban congestion, thus permitting more sustained city growth.

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File URL: https://mpra.ub.uni-muenchen.de/2770/1/MPRA_paper_2770.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 2770.

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Date of creation: 17 Apr 2007
Handle: RePEc:pra:mprapa:2770
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Keywords: Core-Periphery Urban Structure; Agglomerative Production Activity; Endogenous Formation of Cities;

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Find related papers by 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)
  • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
  • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory

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Cited by:

  1. Miquel-Àngel Garcia-López & Camille Hémet & Elisabet Viladecans-Marsal, 2016. "Next train to the polycentric city: The effect of railroads on subcenter formation," Working Papers 2016/14, Institut d'Economia de Barcelona (IEB).
  2. Picard, Pierre M. & Zenou, Yves, 2015. "Urban Spatial Structure, Employment and Social Ties: European versus American Cities," IZA Discussion Papers 9166, Institute for the Study of Labor (IZA).
  3. Ajay Agarwal & Genevieve Giuliano & Christian Redfearn, 2012. "Strangers in our midst: the usefulness of exploring polycentricity," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 48(2), pages 433-450, April.
  4. Mossay, P. & Picard, P.M., 2011. "On spatial equilibria in a social interaction model," Journal of Economic Theory, Elsevier, vol. 146(6), pages 2455-2477.
  5. Dominique Prunetti & Alexandre Muzy & Eric Innocenti & Xavier Pieri, 2014. "Utility-based Multi-agent System with Spatial Interactions: The Case of Virtual Estate Development," Computational Economics, Springer;Society for Computational Economics, vol. 43(3), pages 271-299, March.
  6. Akamatsu, Takashi & Takayama, Yuki & Ikeda, Kiyohiro, 2012. "Spatial discounting, Fourier, and racetrack economy: A recipe for the analysis of spatial agglomeration models," Journal of Economic Dynamics and Control, Elsevier, vol. 36(11), pages 1729-1759.
  7. Steven G. Craig & Janet E. Kohlhase & Adam W. Perdue, 2016. "Empirical Polycentricity: The Complex Relationship Between Employment Centers," Journal of Regional Science, Wiley Blackwell, vol. 56(1), pages 25-52, 01.
  8. Pierre Picard & Yves Zenou, 2014. "Urban Spatial Structure, Employement and Social Ties," CREA Discussion Paper Series 14-31, Center for Research in Economic Analysis, University of Luxembourg.
  9. Wall, Howard J., 2013. "The employment cycles of neighboring cities," Regional Science and Urban Economics, Elsevier, vol. 43(1), pages 177-185.
  10. Jaume Masip Tresserra, 2012. "Identifying the Employment and Population Centers at regional and metropolitan scale: The Case of Catalonia and Barcelona," ERSA conference papers ersa12p70, European Regional Science Association.
  11. Jaume Masip Tresserra, 2012. "Does Employment Density death? Towards a new integrated methodology to identify and characterize Sub-Centres," ERSA conference papers ersa12p71, European Regional Science Association.
  12. Picard, Pierre M. & Tabuchi, Takatoshi, 2013. "On microfoundations of the city," Journal of Economic Theory, Elsevier, vol. 148(6), pages 2561-2582.
  13. Elena G. Irwin, 2010. "New Directions For Urban Economic Models Of Land Use Change: Incorporating Spatial Dynamics And Heterogeneity," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 65-91.
  14. Grover,Arti & Lall,Somik V., 2016. "Jobs in the city : explaining urban spatial structure in Kampala," Policy Research Working Paper Series 7655, The World Bank.

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