On microfoundations of the city

• 成果类型: Article
• 署名作者: Picard, Pierre M.; Tabuchi, Takatoshi
• 署名单位: University of Luxembourg; Universite Catholique Louvain; University of Tokyo
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2013.07.023
• 发表日期: 2013
• 页码: 2561-2582
• 关键词: Co-agglomeration; Continuous distribution; New economic geography; Forward and backward linkages; Housing space

摘要

This paper considers the spatial structure of a city subject to final demand and vertical linkages. Individuals consume differentiated goods (or services) and firms purchase differentiated inputs (or services) in product (or service) markets where firms compete under monopolistic competition. Workers rent their residential lots in an urban land market and contribute to the production of differentiated goods and inputs. We show that firms and workers co-agglomerate and endogenously form a city. We characterize and discuss the spatial distribution of firms and consumers in such cities on one- and two-dimensional spaces. We show that final demand and vertical linkages raise the urban density and reduce the city spread. (C) 2013 Elsevier Inc. All rights reserved.