Agricultural surplus, division of labour and the emergence of cities: A spatial general equilibrium model

Gilles Spielvogel

No 108, Ibero America Institute for Econ. Research (IAI) Discussion Papers from Ibero-America Institute for Economic Research

Abstract: n this paper, we expose the economic conditions of cities emergence in a spatial general equilibrium framework. The presence of increasing returns based on the division of labour, transport costs and the possible existence of an agricultural surplus are enough to generate different possible urban equilibrium. A city may not be sustainable if internal transport costs are too high. On the other hand, a persistent migratory pressure may exist between the city and the surrounding rural hinterland if the urban labour market is saturated. In addition, we study the conditions of stability of the monocentric equilibrium in the different cases.

Keywords: Urbanization; division of labour; agricultural surplus; monocentric urban system (search for similar items in EconPapers)
JEL-codes: O18 R13 R14 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2005-07-12
New Economics Papers: this item is included in nep-agr, nep-geo and nep-ure
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Related works:
Working Paper: Agricultural surplus, division of labour and the emergence of cities, a spatial general equilibrium model (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:got:iaidps:108

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