Berliant, Marcus and Wang, Ping (2007): Urban growth and subcenter formation: A trolley ride from the Staples Center to Disneyland and the Rose Bowl.
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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.
|Item Type:||MPRA Paper|
|Institution:||Washington University in St. Louis|
|Original Title:||Urban growth and subcenter formation: A trolley ride from the Staples Center to Disneyland and the Rose Bowl|
|Keywords:||Core-Periphery Urban Structure; Agglomerative Production Activity; Endogenous Formation of Cities|
|Subjects:||R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R12 - Size and Spatial Distributions of Regional Economic Activity
D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D51 - Exchange and Production Economies
C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory > C78 - Bargaining Theory; Matching Theory
|Depositing User:||Marcus Berliant|
|Date Deposited:||18. Apr 2007|
|Last Modified:||15. Feb 2013 01:45|
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