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Agglomeration and Growth: The Effects of Commuting Costs
Open accessAbstract
We present a model of industrial location and endogenous growth with congestion costs. According to the interplay between knowledge spillovers and commuting costs, we are able to obtain both a Krugman-type and a bell-shaped agglomeration outcome. In the first case, the economy experiences a permanent income inequality in the steady state and income divergence in the transitional dynamics. In the second case, we observe an enlargement of the industrial core of the economy with a strong catching up by the periphery. Welfare analysis shows that congestion create (in the bell-shaped agglomeration case) a negative welfare effect on peripheral unskilled workers and renders the agglomerated equilibrium Pareto inferior to dispersion.
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The Spatial Economy: Cities, Regions, and International Trade
Fujita, M., Krugman, P., & Venables, A. J. (1999) · doi:10.7551/mitpress/6389.001.0001 · Cited by 4,788
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Cingano, F., & Pinotti, P. (2013) · Journal of the European Economic Association · doi:10.1111/jeea.12001 · Cited by 561
Disentangling demand and supply in credit developments: A survey-based analysis for Italy
Del Giovane, P., Eramo, G., & Nobili, A. (2011) · Journal of Banking & Finance · doi:10.1016/j.jbankfin.2011.03.001 · Cited by 417
Are Incentives for R&D Effective? Evidence from a Regression Discontinuity Approach
Bronzini, R., & Iachini, E. (2014) · American Economic Journal: Economic Policy · doi:10.1257/pol.6.4.100 · Cited by 382
How does immigration affect native internal mobility? New evidence from Italy
Mocetti, S., & Porello, C. (2010) · Regional Science and Urban Economics · doi:10.1016/j.regsciurbeco.2010.05.004 · Cited by 286
Comparing forecast accuracy: A Monte Carlo investigation
Busetti, F., & Marcucci, J. (2013) · International Journal of Forecasting · doi:10.1016/j.ijforecast.2012.04.011 · Cited by 283
Metadata
- Authors
- Accetturo, A.
- Venue
- SSRN Electronic Journal
- Publisher
- Elsevier BV
- Published
- 2008
- ISSN
- 1556-5068 (ISSN-L)
- OpenAlex
- W1961320983
- Cited by
- 260
- References
- 1
- Type
- posted content
- Language
- en
- Open access
- green
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