Especificação e simulação dinâmica de um modelo macroeconômico de pequeno porte para a economia brasileira

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City sizes and industry concentration

In a general equilibrium model of trade under transportation costsbetween two cities we show how the relative population sizes aresimultaneously detennined with the degree of geographic concentration ofindustries characterized by different elasticities of scale ofproduction. The effect on city size of the presence of nontraded goodsis also analyzed.