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Vanishing cities: what does the new economic geography imply about the efficiency of urbanization?
2004
Journal of Economic Geography
How should the size and number of cities evolve optimally as population grows? Stripped of the constraints of geography itself, the setup of the New Economic Geography implies that de-agglomeration (or de-urbanization) is efficient. The number of cities increases while the size of each decreases on the optimal path until the economy suddenly disperses to tiny towns of stand-alone firms each specializing in a unique good. The cause of this narrow result is the NEG's strong emphasis on intercity
doi:10.1093/jeg/4.2.181
fatcat:l5kuixo42fhddppyix6av7y4oi