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Author Behrens, Kristian
Source CiteSeerX
Content type Text
File Format PDF
Subject Domain (in DDC) Computer science, information & general works ♦ Data processing & computer science
Subject Keyword Skill Heterogeneity ♦ Clear Two-way Link ♦ City Size ♦ Various Relationship ♦ Income Inequality ♦ Selection Process ♦ Small Town ♦ First Insight ♦ Transportation Technology ♦ Large City ♦ Productivity Gain ♦ Many New City ♦ Rural-urban Migration ♦ City Size Increase Productivity ♦ Massive Urbanisation ♦ Productivity In-creases City Size
Abstract We develop a framework that stresses the role of increasing returns and the division of labour, transportation technology, trade, and skill heterogeneity in explaining the emergence of cities, what determines their size, and why large cities are both more productive and more unequal than small towns. The model establishes a clear two-way link between city size and productivity: a larger city size increases productivity via a selection process; whereas higher productivity in-creases city size by providing incentives for rural-urban migration. This circularity may account for periods of massive urbanisation and productivity gains in which many new cities appear and existing cities grow. Our model also provides some first insights into the various relationships between skill heterogeneity, urbanisation, agglomeration, and income inequality.
Educational Role Student ♦ Teacher
Age Range above 22 year
Educational Use Research
Education Level UG and PG ♦ Career/Technical Study
Publisher Date 2010-01-01