A Dynamic Spatial Model of Rural-Urban Transformation with Public Goods
| Autor: | Luis Alberto Andres, David Cuberes, Dan Biller |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2015 |
| Předmět: |
rural-urban transformation
education.field_of_study geography geography.geographical_feature_category Urban agglomeration Economies of agglomeration Population public Public good Urban area R1 R23 Urban economics Urban planning Urbanization congestion costs Economics ddc:330 Economic Theory&Research Population Policies Urban Housing and Land Settlements National Urban Development Policies&Strategies Labor Policies Economic geography Economic system education agglomeration economies H40 |
| Zdroj: | A Dynamic Spatial Model of Rural-Urban Transformation with Public Goods |
| Popis: | In this paper we develop a dynamic model that explains the pattern of population and production allocation in an economy with an urban location and a rural one. Agglomeration economies make urban dwellers benefit from a larger population living in the city and urban firms become more productive when they operate in locations with a larger labor force. However, congestion costs associated with a too large population size limit the process of urban-rural transformation. Firms in the urban location also benefit from a public good that enhances their productivity. The model predicts that in the competitive equilibrium the urban location is inefficiently small because households fail to internalize the agglomeration economies and the positive effect of public goods in urban production. |
| Databáze: | OpenAIRE |
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