Seminario 19/18: David Nagy (CXREI-Universitat Pompeu Fabra) – City Location and Economic Development

Abstract:I present a dynamic model of the U.S. economy with trade, labor mobility, endogenous growth and realistic geography to examine the relationship between spatial frictions, city formation and aggregate development. In the model, a subset of locations endogenously specialize in innovative industries that are subject to economies of scale. This leads to the formation and…