The Optimal Distribution of Population across Cities

Albouy, David; Behrens, Kristian; Robert‐Nicoud, Frédéric; Seegert, Nathan

doi:10.3386/w22823

Cited by 14 publications

(15 citation statements)

References 19 publications

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“…Albouy et al (2019) andEeckhout and Guner (2017) argue that large cities are too small in models with homogeneous workers, one-dimensional heterogeneity and spillover elasticities only.40 This general-equilibrium elasticity of population to taxes implied by the model falls within the [0, 2] range corresponding to the quasi-experimental estimates of migration responses to taxes summarized byKleven et al (2019). This literature estimates an elasticity of migration to taxes that does not account for general-equilibrium outcomes.…”

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confidence: 94%

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Optimal Spatial Policies, Geography, and Sorting*

Fajgelbaum

Gaubert

2020

The Quarterly Journal of Economics

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We study optimal spatial policies in a quantitative trade and geography framework with spillovers and spatial sorting of heterogeneous workers. We characterize the spatial transfers that must hold in efficient allocations, as well as labor subsidies that can implement them. There exists scope for welfare-enhancing spatial policies even when spillovers are common across locations. Using data on U.S. cities and existing estimates of the spillover elasticities, we find that the U.S. economy would benefit from a reallocation of workers to currently low-wage cities. The optimal allocation features a greater share of high-skill workers in smaller cities relative to the observed allocation. Inefficient sorting may lead to substantial welfare costs.

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confidence: 94%

“…See Abdel-Rahman and Anas (2004) for a review. More recent studies include Albouy (2012),Albouy et al (2019) andEeckhout and Guner (2017). A focus in some of these papers is to study the extensive margin of city creation.…”

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confidence: 99%

Optimal Spatial Policies, Geography, and Sorting*

Fajgelbaum

Gaubert

2020

The Quarterly Journal of Economics

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“…Abdel‐Rahman and Anas () provide an overview of the systems of cities research. More recent research in this line includes work by Albouy, Behrens, Robert‐Nicoud, and Seegert (). These authors construct a Henderson‐type model, but depart from the norm by allowing heterogeneous city sites and the inclusion of various fiscal instruments, such as housing costs and federal taxes.…”

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confidence: 99%

City formation with complex landscapes

Fain

2017

Intell Sys Acc Fin Mgmt

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Summary Using simulation methods I explore some of the properties of the new economic geography model using a complex landscape. I introduce landscape complexity by allowing the existence of limited pathways that can be traversed at a lower cost than most other paths. I also introduce a river that may be crossed at limited points and may be used to transport goods. I find that adding complexity substantially alters how many cities form and where they form. Compared with a simple landscape, complex landscapes produce a distribution of city sizes that more closely resemble the actual distribution of city sizes.

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“…Both studies argue that the pattern of earnings behaviour across regions in Romania may have important growth implications. We suggest that the Anti‐commons constraints on Romania's housing market may be posing impediments to income convergence as has been found to be the case in the US (see Albouy et al ., ; Hsieh and Moretti, ; Panong and Shoag, ).…”

Section: Introductionmentioning

confidence: 99%

Housing privatization in Romania

Buckley

Mathema

2017

Econ Transit

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Over the past three decades, Romanian housing rights changed from a strictly managed public stock to one governed by individual decision-making. And while it is typical that widespread private ownership provides a basis for a well-functioning housing market, in Romania this has not been the case. Indeed, rather than creating a market that spontaneously allocates resources efficiently, housing privatization in Romania has created exclusion rights, thus creating an Anti-commons problem. This problem can have effects similar to those of the tragedy of the Commons in which those who share a common good overuse it. In the Anti-commons, in contrast, if too many owners have the right to exclude others from use of a resource, the resource is underused. In both cases, the rights allocation wastes resources.JEL classifications: R31, R32, R38.

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The Optimal Distribution of Population across Cities

Abstract: This paper merges and supersedes Albouy and Seegert (2012) and Behrens and Robert-Nicoud's (2014) pieces. We are grateful to Vernon Henderson for his detailed and extremely valuable comments. We are also grateful to Costas Arkolakis,

Cited by 14 publications

References 19 publications

Optimal Spatial Policies, Geography, and Sorting*

Optimal Spatial Policies, Geography, and Sorting*

City formation with complex landscapes

Housing privatization in Romania

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