Date of this Version
Journal of Political Economy
Large cities produce more output per capita than small cities. This higher productivity may occur because more talented individuals sort into large cities, because large cities select more productive entrepreneurs and firms, or because of agglomeration economies. We develop a model of systems of cities that combines all three elements and suggests interesting complementarities between them. The model can replicate stylized facts about sorting, agglomeration, and selection in cities. It also generates Zipf’s law for cities under empirically plausible parameter values. Finally, it provides a useful framework within which to reinterpret extant empirical evidence.
sorting, selection, agglomeration, urban premium, city size, Zipf's law
Behrens, K., Duranton, G., & Robert-Nicoud, F. (2014). Productive Cities: Sorting, Selection, and Agglomeration. Journal of Political Economy, 122 (3), 507-553. http://dx.doi.org/10.1086/675534
Date Posted: 27 November 2017
This document has been peer reviewed.