Revenus des facteurs et agglomération
Eric Toulemonde
Revue d'économie régionale et urbaine, 2014, vol. septembre, issue 2, 219-239
Abstract:
We present a simple model of economic geography based on the following circularity: (1) regions in which high-earnings skilled workers live have a high market potential and are therefore attractive for firms; (2) the presence of many firms in a region encourages workers to acquire the skills required by these firms. This circularity can push firms to agglomerate. This model extends easily to multiple regions. Its tractability allows considering further analysis in economic policy. Finally, the tractability of the model also allows us to recall some standard results in economic geography.
Keywords: factor income; home market effect; agglomeration (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:cai:rerarc:reru_142_0219
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