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Sistemas de ciudades y tamaño: Un modelo de diferenciación del producto

José Luis Sáez Lozano and Pablo Brañas-Garza
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José Luis Sáez Lozano: Universidad de Granada

Estudios Económicos, 2001, vol. 16, issue 1, 73-104

Abstract: This work presents a static model of optimal city size. The supply is characterized by firms under imperfect competition; families with preferences for variety form the demand side. The optimal size is sensitive to economies of agglomeration (or congestion) and to the households’ utility levels. Therefore, the consequence of taxation is analyzed in terms of efficiency. The second part studies the optimal system of cities size. Results seem to prove that size is path dependent: short or long run.

Date: 2001
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