Optimal transportation and the structure of cities
نویسنده
چکیده
Following the recent analysis of Lucas and Rossi-Hansberg [10], we study the equilibrium structure of cities. By adopting a different (monetary) specification of commuting costs, we are able to prove the existence of equilibrium in more general situations: non-circular cities, or multi-sectorial production. The main mathematical tool in this paper is the use of optimal transportation theory. This theory offers a new framework, both powerful and robust for problems in geographical economics.
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