Labor Differentiation and Agglomeration in General Equilibrium
Marcus Berliant and
Yves Zenou
Urban/Regional from University Library of Munich, Germany
Abstract:
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. To our knowledege, this is the first paper that applies 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; heterogeneous labor; transportation network; general equilibrium (search for similar items in EconPapers)
JEL-codes: D51 R14 (search for similar items in EconPapers)
Pages: 50 pages
Date: 2004-08-10
New Economics Papers: this item is included in nep-geo and nep-ure
Note: Type of Document - pdf; pages: 50
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)
Downloads: (external link)
https://econwpa.ub.uni-muenchen.de/econ-wp/urb/papers/0408/0408003.pdf (application/pdf)
Related works:
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 (2012) 
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:wpa:wuwpur:0408003
Access Statistics for this paper
More papers in Urban/Regional from University Library of Munich, Germany
Bibliographic data for series maintained by EconWPA ( this e-mail address is bad, please contact ).