Externalities, Indivisibility, Nonreplicability, and Agglomeration

Papageorgiou, Yorgos Y.; Pines, David

doi:10.1006/juec.2000.2178

Cited by 12 publications

(7 citation statements)

References 34 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In the more pathological case of very small sectors consuming a large share of business services, Lemma 5 may not even hold as some cities may find it worthwhile to host production plants of integrated firms in two or more sectors so that they can share the costs of business services. For further discussion of these issues, see Papageorgiou and Pines (2000).…”

Section: From Sectoral To Functional Urban Specialisationmentioning

confidence: 99%

From sectoral to functional urban specialisation

Duranton

Puga

2005

Journal of Urban Economics

436

210

View full text Add to dashboard Cite

Striking evidence is presented of a previously unremarked transformation of urban structure from mainly sectoral to mainly functional specialisation. We offer an explanation showing that this transformation is inextricably interrelated with changes in firms' organisation. A greater variety of business services for headquarters and of sector-specific intermediates for production plants within a city reduces costs, while congestion increases with city size. A fall in the costs of remote management leads to a transformation of the equilibrium urban and industrial structure. Cities shift from specialising by sector-with integrated headquarters and plants-to specialising mainly by function-with headquarters and business services clustered in larger cities, and plants clustered in smaller cities. ABSTRACTStriking evidence is presented of a previously unremarked transformation of urban structure from mainly sectoral to mainly functional specialization. We offer an explanation showing that this transformation is inextricably interrelated with changes in firms' organization. A greater variety of business services for headquarters and of sector-specific intermediates for production plants within a city reduces costs, while congestion increases with city size. A fall in the costs of remote management leads to a transformation of the equilibrium urban and industrial structure. Cities shift from specializing by sector --with integrated headquarters and plants --to specializing mainly by function --with headquarters and business services clustered in larger cities, and plants clustered in smaller cities.

show abstract

Section: From Sectoral To Functional Urban Specialisationmentioning

confidence: 99%

From sectoral to functional urban specialisation

Duranton

Puga

2005

Journal of Urban Economics

436

210

View full text Add to dashboard Cite

show abstract

“…The argument can readily be modified to eliminate these flaws, as is done in Papageorgiou and Pines (2000). It is socially optimal for a peasant to move from the countryside to the city if (20) that is, if the marginal social surplus (defined as marginal social benefit minus marginal social cost) generated by the peasant is greater…”

Section: A Over-and Underpopulation Of Citiesmentioning

confidence: 99%

Does the Henry George Theorem Provide a Practical Guide to Optimal City Size?

Arnott¹

2004

American J Econ Sociol

View full text Add to dashboard Cite

The spatial distribution of economic activity is determined by a balancing of increasing and decreasing returns to scale activities. The Henry George Theorem states roughly that, if economic activity is efficiently organized over a "large" space, aggregate land rents equal the aggregate losses from the decreasing returns to scale activities. Kanemoto, Ohkawara, and Suzuki have tentatively applied the Henry George Theorem to investigate whether Tokyo has too large a population. This paper has two aims. The first is to explore the Theorem and its generality; the second is to examine whether it provides a promising conceptual foundation for estimating whether particular cities are over-or underpopulated.

show abstract

“…For a more detailed description and evaluation of this debate see Pines (1999, 2000). 8 See Papageorgiou and Pines (2000) for further discussion. it turns out that the desired corrective policy depends on whether it is feasible to induce a global change in the population partition or only a marginal change.…”

Section: Laissez-faire and Second-best Partitionsmentioning

confidence: 99%

On the Market Failure in a Dixit‐Stiglitz Setup with Two Trading Cities

Hadar

Pines

2003

J Public Economic Theory

Self Cite

View full text Add to dashboard Cite

This study discusses the reasons for market failure and its bias in an economy with two cities and two final goods: tradeable differentiated products and non-tradeable housing. It is shown that inside the city, as in Dixit and Stiglitz (1977), diversity (number of firms) is too small. With regard to the population partition between the cities, the paper distinguishes between a marginal and a global market bias against agglomeration or dispersion (in a second-best context). The reasons for a marginal bias are twofold: a gap between marginal and average labor productivity and the (excessive) labor employed in housing production which vary between the large and the small cities. The source of the global bias is multiple stable equilibria. The marginal bias may be in an opposite direction to the global bias, such that more agglomeration may be marginally desirable, whereas full dispersion is (second-best) optimal. Simulations demonstrate that the same market structure and potential source of market failure may imply bias in different directions, depending on the aggregate population size.

show abstract

Externalities, Indivisibility, Nonreplicability, and Agglomeration

Cited by 12 publications

References 34 publications

From sectoral to functional urban specialisation

From sectoral to functional urban specialisation

Does the Henry George Theorem Provide a Practical Guide to Optimal City Size?

On the Market Failure in a Dixit‐Stiglitz Setup with Two Trading Cities

Contact Info

Product

Resources

About