Urban agglomeration economies in the presence of technical change

Article Abstract:

A model of urban manufacturing industries confirms that agglomeration economies are a critical factor in determining the productivity of urban manufacturing companies, and in supporting the technology diffusion hypothesis. This conclusion holds true for restricted as well as unrestricted (covariance) models. Both restricted and unrestricted versions provide support for the assertion that agglomeration economies exist in urban areas with less than 2 million people. Continual returns-to-scale are present in areas with more than 2 million people. Labor working in tandem with technological advancement is most evident in more populous cities.

Research, Manufacturing industry, Manufacturing industries, Statistics, Technological innovations, Cities and towns, Economies of scale

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Labor heterogeneity, wage bargaining, and agglomeration economies

Article Abstract:

An alternative urban agglomeration model is presented to demonstrate the effects of increasing returns to scale and labor specialization. The model assumes that labor is heterogeneous and that labor requirements are diverse. An analysis of the model shows that average productivity improves as the labor market becomes larger. Specialized workers are more suited to their job requirements, thus reducing the costs of mismatching workers and jobs.

Analysis, Labor economics, Labor market, Labor productivity, Division of labor

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Separating urban agglomeration economies in consumption and production

Article Abstract:

An intercity equilibrium model shows that when city size doubles, wage levels rise 10% nominally, but real wages drop by 7%-10%. The model separates net agglomeration economies of both production and consumption.

Consumption (Economics), Cost and standard of living, Cost of living

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