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A theory of heterogeneous city growth
International Journal of Economic Theory ( IF 0.530 ) Pub Date : 2020-01-29 , DOI: 10.1111/ijet.12253
Christian Ghiglino 1 , Kazuo Nishimura 2 , Alain Venditti 3
Affiliation  

We consider an economy with three cities producing different outputs. Two cities produce intermediate goods, a type 1 city producing an intermediate “agricultural” good with capital and labor only, and a type 2 city producing an intermediate “industrial” good with capital, labor, and human capital. A type 3 city produces the final good which is obtained from the two intermediate goods and labor. The asymmetric introduction of human capital allows us to prove that the three cities experience, at equilibrium, heterogeneous endogenous growth rates which are proportional to the growth rate of human capital. We show that the “industrial” type 2 city is characterized by the larger growth rate while the “agricultural” type 1 city experiences the lower growth rate, and thus the type 3 city is characterized by a growth rate which is a convex combination of the two former growth rates. This implies that the relative size in terms of output of the “agricultural” city decreases over time. This property allows us to recover the empirical fact that most non‐agricultural production occurs in growing metropolitan areas. But, simultaneously, as we prove that total labor employed in each city is proportional to the total population, the relative population size distribution of cities is constant over time, as shown in empirical studies.

中文翻译:

异质城市发展理论

我们考虑一个经济体,其中三个城市的产出不同。两个城市生产中间商品,一类城市仅生产具有资本和劳动力的中间“农业”商品,二类城市生产仅具有资本,劳动力和人力资本的中间“工业”商品。第三类城市生产的最终商品是从两个中间商品和劳动力中获得的。人力资本的不对称引入使我们能够证明,这三个城市在均衡时经历了与人力资本增长率成比例的异质内生增长率。我们显示,“工业” 2型城市的特征在于较高的增长率,而“农业” 1型城市的增长率较低,因此,第3类城市的特征在于增长率是前两个增长率的凸组合。这意味着“农业”城市的产出相对规模随着时间的推移而减小。这种特性使我们能够恢复经验性事实,即大多数非农业生产都发生在增长中的大都市地区。但是,同时,由于我们证明每个城市雇用的总劳动力与总人口成正比,因此,如经验研究所示,城市的相对人口规模分布随时间是恒定的。
更新日期:2020-01-29
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