Regional specialization, urban hierarchy, and commuting costs

Takatoshi Tabuchi and Jacques Thisse

No 2003060, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: We consider an economic geography model of a new genre: all firms and workers are mobile and their agglomeration within a city generates rising urban costs through competition on a land market. When commuting costs are low (high), the industry tends to be agglomerated (dispersed). With two sectors, the same tendencies prevail for extreme commuting cost values, but richer patterns arise for intermediate values. When one good is perfectly mobile, the corresponding industry is partially dispersed and the other industry is agglomerated, thus showing regional specialization. When one sector supplies a nontradeable consumption good, this sector is more agglomerated than the other. The corresponding equilibrium involves an urban hierarchy: a larger array of varieties of each good is produced within the same city.

Keywords: interregional mobility; intersectional mobility; agglomeration; commuting costs (search for similar items in EconPapers)
JEL-codes: F12 F16 J60 L13 R12 (search for similar items in EconPapers)
Date: 2003-09
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Citations: View citations in EconPapers (6)

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Related works:
Journal Article: REGIONAL SPECIALIZATION, URBAN HIERARCHY, AND COMMUTING COSTS (2006)
Working Paper: Regional specialization, urban hierarchy, and commuting costs (2006)
Working Paper: Regional specialization, urban hierarchy, and commuting costs (2006)
Working Paper: Regional Specialization, Urban Hierarchy, and Commuting Costs (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:cor:louvco:2003060

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