articles: Capital cities: When do they stop growing?

Kristof Dascher

Papers in Regional Science, 2002, vol. 81, issue 1, 49-62

Abstract: This article is an attempt to explain a capital city's size. We assume away explanations such as exploitation of the capital city's hinterland. Instead, we emphasise the role of the localisation of government activity (i.e., administration or legislation) in the capital city for both the capital city economy and the hinterland economy. We assume in the model that larger regions benefit from agglomeration economies. We discuss the interaction of those agglomeration economies with an agglomeration diseconomy specific to the capital city. Under certain conditions, a stable population distribution between the capital city and its hinterland emerges where neither region captures the entire population. We also analyse the comparative statics properties of this stable equilibrium.

Keywords: Capital city; public goods; urban growth (search for similar items in EconPapers)
JEL-codes: H41 R53 (search for similar items in EconPapers)
Date: 2002-02-07
Note: Received: 6 June 2000
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Citations: View citations in EconPapers (2)

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