Industrial Structure in Urban Accounting

Jun Oshiro and Yasuhiro Sato

Discussion papers from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: We develop a multisector general equilibrium model of a system of cities to study the quantitative significance of industrial structure in determining spatial structure. We first identify three types of wedges that capture the extent to which the standard urban economic model fails to explain empirically: efficiency and labor wedges, and amenity. We then calibrate the model to Japanese regional data and run counterfactual exercises to identify the significance of each wedge in each sector. Our analysis shows that (i) the labor wedge plays the primary role in determining the spatial structure, and (ii) the secondary sector is the most influential.

Pages: 25 pages
Date: 2016-12
New Economics Papers: this item is included in nep-geo and nep-ure
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Related works:
Journal Article: Industrial structure in urban accounting (2021)
Working Paper: Industrial Structure in Urban Accounting (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:eti:dpaper:16105

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