TY - JOUR
T1 - Geographic concentration and establishment size
T2 - Analysis in an alternative economic geography model
AU - Holmes, Thomas J.
AU - Stevens, John J.
PY - 2004/6
Y1 - 2004/6
N2 - Big cities specialize in services rather than manufacturing. Big-city establishments in services are larger than the national average, whereas those in manufacturing are smaller. We propose an explanation of these and other related facts. The theory is developed in an economic geography model that is an alternative to the standard Dixit-Stiglitz structure. In our tractable structure, which has potentially wider application, firms have monopoly power in local markets but are price takers in export markets.
AB - Big cities specialize in services rather than manufacturing. Big-city establishments in services are larger than the national average, whereas those in manufacturing are smaller. We propose an explanation of these and other related facts. The theory is developed in an economic geography model that is an alternative to the standard Dixit-Stiglitz structure. In our tractable structure, which has potentially wider application, firms have monopoly power in local markets but are price takers in export markets.
KW - Establishment size
KW - Geographic concentration
KW - New economic geography
KW - Transportation costs
UR - http://www.scopus.com/inward/record.url?scp=3042680102&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=3042680102&partnerID=8YFLogxK
U2 - 10.1093/jnlecg/lbh018
DO - 10.1093/jnlecg/lbh018
M3 - Article
AN - SCOPUS:3042680102
SN - 1468-2702
VL - 4
SP - 227
EP - 250
JO - Journal of Economic Geography
JF - Journal of Economic Geography
IS - 3
ER -