Technical change and agglomeration

Although economic historians consider technical change to be a significant factor explaining the evolution of the spatial organization of an economy, economic geography still fails to address this important issue. By developing a simple two-region general equilibrium model under monopolistic competi...

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Veröffentlicht in:Economics bulletin 2007-01, Vol.18 (3), p.1-5
Hauptverfasser: Riou, Stephane, Gaigné, Carl
Format: Artikel
Sprache:eng
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Zusammenfassung:Although economic historians consider technical change to be a significant factor explaining the evolution of the spatial organization of an economy, economic geography still fails to address this important issue. By developing a simple two-region general equilibrium model under monopolistic competition, we show that agglomeration is triggered by technological progress shifting production towards more skill intensive techniques.
ISSN:1545-2921
1545-2921