Heterogeneous firms, agglomeration and economic geography: spatial selection and sorting
نویسندگان
چکیده
منابع مشابه
Heterogeneous firms, agglomeration and economic geography: Selection and sorting
A Melitz-style model of monopolistic competition with heterogeneous firms is integrated into a simple NEG model to show that the standard assumption of identical firms is neither necessary nor innocuous. We show that re-locating to the big region is most attractive for the most productivity firms; this implies interesting results for empirical work and policy analysis. A ‘selection effect’ mean...
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We show that heterogeneous firms choose different locations in respond to market integration. Specifically, decreasing trade costs lead to the gradual agglomeration of efficient firms in the larger country where they have access to a bigger pool of consumers. In contrast, high-cost firms seek protection against competition from efficient firms by locating in the smaller country. However, when t...
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I model endogenous horizontal and vertical product differentiation with arbitrarily many heterogeneous firms. Firms are asymmetric in that they differ in their marginal costs. I prove that under an equilibrium refinement, all economically relevant firm outcomes are uniquely determined across all strict subgame perfect Nash equilibria. There are two central results. First, a firm’s price, market...
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ژورنال
عنوان ژورنال: Journal of Economic Geography
سال: 2005
ISSN: 1468-2710,1468-2702
DOI: 10.1093/jeg/lbi020