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City sizes and industry concentration

Afonso Franco Neto

No 263, FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) from EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil)

Abstract: In a general equilibrium model of trade under transportation costs between two cities we show how the relative population sizes are simultaneously detemined with the degree of geographic concentration of industries characterized by different elasticities of scale of production. The effect on city size of the presence of nontraded goods is also analyzed.

Date: 1995-05
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