Cities in Space: Three Simple Models
(128 K)
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NBER Working Paper No. 3607
Issued in January 1991
NBER Program(s): ITI IFM
Urban agglomerations arise at least in part out of the interaction between economies of scale in production and market size effects. This paper develops a simple spatial framework to develop illustrative models of the determinants of urban location, of the number and size of cities, and of the degree of urbanization. A Central theme is the probable existence of multiple equilibria, and the dependence of the range of potential outcomes on a few key parameters.
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