One or infinite optimal city sizes? In search of an equilibrium size for cities

Roberto Camagni, Roberta Capello and Andrea Caragliu

The Annals of Regional Science, 2013, vol. 51, issue 2, 309-341

Abstract: In this paper, the stylized assumption that one single “optimal” city size exists for all cities—achieved when marginal location costs equal marginal location benefits—is abandoned, as well as the opposite view that each city operates on its own cost and production curves, defining a specific optimal size. Instead, this work maintains the comparability among cities and demonstrates that urban specificities in functions performed, quality of life, industrial diversity and social conflicts shift up and down the benefits and costs linked to pure physical size, leading to different “equilibrium” sizes for cities. In order to achieve this result, a model of equilibrium urban size is set up, based on urban costs and urban benefits, merging elements suggested both by the traditional urban economics literature as well as by updated approaches considering also environmental quality, urban form and inter-urban cooperation networks. The model is then estimated on a sample of 59 European cities with data at FUA level. Empirical results allow the identification of city-specific “equilibrium” sizes. The error term, that is, the difference between actual urban population and the “equilibrium” one predicted by the model can be explained, beyond a measure of our ignorance, by good or bad governance, thereby suggesting future strategies for more efficient urban planning. Copyright Springer-Verlag Berlin Heidelberg 2013

Keywords: R11; R12 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (33)

Downloads: (external link)
http://hdl.handle.net/10.1007/s00168-012-0548-7 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:anresc:v:51:y:2013:i:2:p:309-341

Ordering information: This journal article can be ordered from
http://link.springer.com/journal/168

DOI: 10.1007/s00168-012-0548-7

Access Statistics for this article

The Annals of Regional Science is currently edited by Martin Andersson, E. Kim and Janet E. Kohlhase

More articles in The Annals of Regional Science from Springer, Western Regional Science Association Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().