A simple model of economic geography à la Helpman-Tabuchi

Murata, Yasusada;Thisse, Jacques-François
(2005)

Files

dp2005_17.pdf
  • Open Access
  • Adobe PDF
  • 192.13 KB
Download

Details

Authors
  • Murata, Yasusada
    Author
  • Thisse, Jacques-FrançoisUCLouvain
    Author
Abstract
This paper explores the interplay between commodities' transportation costs and workers' commuting costs within a general equilibrium framework A la Dixit-Stiglitz. Workers are mobile and choose a region where to work as well as an intraurban location where to live. We show that a more integrated economy need not be more agglomerated. Instead, low transportation costs lead to the dispersion of economic activities. This is because workers are able to alleviate the burden of urban costs by being dispersed, while retaining a good access to all varieties. By contrast, low commuting costs foster the agglomeration of economic activities.
Affiliations

Citations

  • APA
  • Chicago
  • FWB

Murata, Y., & Thisse, J.-F. (2005). A simple model of economic geography à la Helpman-Tabuchi (CORE Discussion Papers 2005/17). https://hdl.handle.net/2078.5/34859