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Dynamic Urban Models: Agglomeration and Growth

Marcus Berliant () and Ping Wang ()

No 1167, Working Papers from California Institute of Technology, Division of the Humanities and Social Sciences

Abstract: Theoretical models of urban growth are surveyed in a common framework. Exogenous growth models, where growth in some capital stock as a function of investment is assumed, are examined first. Then endogenous growth models, where use of some factor by a firm increases the productivity of other firms, are studied. These are all modes with perfect competition among agents. Next, models with imperfect competition are discussed. There are two varieties: those employing a monopolistic competition approach to product differentiation, and those employing explicit externalities but lacking some markets. Finally, avenues for future research are explored. Correlations between agglomeration and growth in the various models and data are compared.

Keywords: agglomerative activity; Marshallian externalities; matching; urban growth (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev and nep-geo
Date: 2003-05
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