Labor Differentiation and Agglomeration in General Equilibrium
Marcus Berliant () and
Yves Zenou ()
No 8840, CEPR Discussion Papers from C.E.P.R. Discussion Papers
The aim of this paper is to explore the structure of cities as a function of labor differentiation, gains to trade, a fixed cost for constructing the transportation network, a variable cost of commodity transport, and the commuting costs of consumers. Firms use different types of labor to produce different outputs. Locations of all agents are endogenous as are prices and quantities. This is among the first papers to apply smooth economy techniques to urban economics. Existence of equilibrium and its determinacy properties depend crucially on the relative numbers of outputs, types of labor and firms. More differentiated labor implies more equilibria. We provide tight lower bounds on labor differentiation for existence of equilibrium. If these sufficient conditions are satisfied, then generically there is a continuum of equilibria for given parameter values. Finally, an equilibrium allocation is not necessarily Pareto optimal in this model.
Keywords: city structure; general equilibrium; heterogeneous labour; transportation network (search for similar items in EconPapers)
JEL-codes: D51 R14 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-geo and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at email@example.com
Journal Article: Labor Differentiation and Agglomeration in General Equilibrium (2014)
Working Paper: Labor differentiation and agglomeration in general equilibrium (2012)
Working Paper: Labor Differentiation and Agglomeration in General Equilibrium (2004)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:8840
Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... ers/dp.php?dpno=8840
Access Statistics for this paper
More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 77 Bastwick Street, London EC1V 3PZ..
Series data maintained by (). This e-mail address is bad, please contact .