A tractable city model for aggregative analysis

Satyajit Chatterjee () and Burcu Eyigungor

No 15-37, Working Papers from Federal Reserve Bank of Philadelphia

Abstract: An analytically tractable city model with external increasing returns is presented. The equilibrium city structure is either monocentric or decentralized. Regardless of which structure prevails, intracity variation in endogenous variables displays exponential decay from the city center, where the decay rates depend only on parameters. Given population, the equilibrium of the model is generically unique. Tractability permits explicit expressions for when a central business district (CBD) will emerge in equilibrium, how external increasing returns affect the steepness of downtown rent gradients, and how wages and welfare vary with population. An application to urban growth boundary is presented.

Keywords: Agglomeration economies; central business districts; Rent gradient; Urban growth (search for similar items in EconPapers)
JEL-codes: R30 Z10 (search for similar items in EconPapers)
Pages: 55 pages
Date: 2015-10-17
New Economics Papers: this item is included in nep-geo and nep-ure
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: A TRACTABLE CITY MODEL FOR AGGREGATIVE ANALYSIS (2017)
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