Optimal Cities with Indivisibility in Production and Interactions Between Firms

Yoshitsugu Kanemoto

Working Paper from Economics Department, Queen's University

Abstract: A spatial model of cities is constructed by combining interaction costs between firms with indivisibility in production. The optimal allocation requires Pigouvian subsidies to firms and the externality version of the Henry George Theorem is obtained: at the optimal city size, the total Pigouvian subsidy equals the total differential land rent in a city. We also obtain conditions under which monocentric configuration is optimal and perform comparative statics concerning changes in various parameters on the optimal city size.

Pages: 34 pages
Date: 1985
References: Add references at CitEc
Citations: View citations in EconPapers (4)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Optimal cities with indivisibility in production and interactions between firms (1990)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:qed:wpaper:597

Access Statistics for this paper

More papers in Working Paper from Economics Department, Queen's University Contact information at EDIRC.
Bibliographic data for series maintained by Mark Babcock ().