A Theory of Heterogeneous City Evolution with Heterogenous Agents

Jaewon Jung
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Abstract

This paper develops a new unified theoretical general equilibrium model in which the interactions between heterogeneous workers and firms influence heterogeneous city evolutions. Given the heterogeneous worker–firm–city framework, I study in depth the possible heterogenous city evolutions and the resulting implications on the labor market, as well as on overall productivity. In particular, it is shown that the same exogenous shocks may lead to completely different results depending on the relative dominance of the two countervailing effects of congestion and agglomeration. In an open economy setting, it is also shown that such relative dominance may affect the trading partner and generate the comovement of city evolution in each country.
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具有异质主体的异质城市演化理论
本文建立了一个新的统一的理论一般均衡模型,其中异质工人和企业之间的相互作用影响异质城市的演化。鉴于异质性的工人-企业-城市框架,我深入研究了可能的异质性城市演变及其对劳动力市场和整体生产率的影响。特别是,研究表明,相同的外源冲击可能导致完全不同的结果,这取决于拥堵和集聚两种抵消效应的相对优势。在开放经济背景下,这种相对优势可能会影响贸易伙伴,并产生各国城市演化的共同运动。
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9 weeks
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