Munich Personal RePEc Archive

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

Berliant, Marcus and Wang, Ping (2007): Urban growth and subcenter formation: A trolley ride from the Staples Center to Disneyland and the Rose Bowl.

[img]
Preview
PDF
MPRA_paper_2770.pdf

Download (377Kb) | Preview

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.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.