Urban agglomeration: Knowledge spillovers and product diversity

Olga Alonso-Villar

The Annals of Regional Science, 2002, vol. 36, issue 4, 573 pages

Abstract: There is no doubt that people like to migrate to large cities because they can acquire a wider range of products and jobs, but also because they can more easily exchange information and ideas. In this respect, we attempt to explain the formation of metropolitan areas by using a general equilibrium model, in which concentration emerges not only from interaction between increasing returns to scale at firm level, transport costs and labor mobility, but also from human capital externalities. This paper shows that there is new scope for government activity.

JEL-codes: R13 R14 (search for similar items in EconPapers)
Date: 2003-01-15
Note: Received: August 2000/Accepted: January 2002
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Citations: View citations in EconPapers (6)

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