Working Paper: CEPR ID: DP10184
Authors: Kristian Behrens; Frdric Robert-Nicoud
Abstract: This chapter surveys recent developments in agglomeration theory within a unifying framework. We highlight how locational fundamentals, agglomeration economies, the spatial sorting of heterogeneous agents, and selection effects affect the size, productivity, composition, and inequality of cities, as well as their size distribution in the urban system.
Keywords: agglomeration; city-size distribution; heterogeneous agents; inequality; selection; sorting
JEL Codes: D31; R12
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| City Size (R12) | Quality of Locational Fundamentals (R53) |
| City Size (R12) | Average Earnings (J31) |
| City Size (R12) | Share of Workers with College Degrees (J39) |
| Urban Density (R12) | Share of Self-Employed Individuals (D33) |
| City Size (R12) | Urban Inequality (Gini Coefficient) (D31) |