MULTI-FIRM CITY VERSUS COMPANY TOWN: A MICRO FOUNDATION MODEL OF LOCALIZATION ECONOMIES
Article Abstract:
When do we have a company town and when do we have a multi-firm city? In this paper I analyze the impact of public infrastructure investment decisions on types of cities in a decentralized urban system. This is done in a one-sector spatial general equilibrium model of a closed economy. Investment in public infrastructures reduces the fixed set up cost of all firms within the city resulting in multi-firm cities. Thus, in this approach localization economies are modelled explicitly instead of assuming that larger industrial size within the city enhances productivity. On the other hand, when the infrastructure is not provided, a company town will be formed by a developer because of the fixed cost required by each firm. The decision of whether to invest in the provision of public infrastructures depends on the type of city that will provide households with the highest utility. This paper characterizes the conditions that lead to each of the two equilibrium configurations.
Publication Name: Journal of Regional Science
Subject: Social sciences
ISSN: 0022-4146
Year: 2000
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A NOTE ON TRIP BENEFITS IN SPATIAL INTERACTION MODELS
Article Abstract:
We extend the well-known transport users' benefits measure (TUB) for the doubly-constrained spatial interaction model derived by Williams (1976). The original formula expresses the TUB as composed by two terms associated with the origin and the destination zones. First, the TUB is associated here with trips instead of zones, providing a natural interpretation as a rule-of-a-half measure of benefit under inelastic demand (for the short-run case). Second, a TUB formula for the long-run case is derived, that is, when the total number of trips, trip origins, and trip destinations change. We then propose updated measures of accessibility for location behavior.
Publication Name: Journal of Regional Science
Subject: Social sciences
ISSN: 0022-4146
Year: 2000
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Income disparity, time allocation, and social welfare in a system of cities
Article Abstract:
Analysis of a two-sector general-equilibrium model of a system of cities in a closed economy reveals that te main determinants of income disparity include spatial, economic and infrastructure factors. The model presented may be expanded to include leisure consumption, land ownership factors, infrastructure-based labor productivity and inclusion of a third type of labor that deals with a non-traded service.
Publication Name: Journal of Regional Science
Subject: Social sciences
ISSN: 0022-4146
Year: 1998
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