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Learning investment and industrial diversity in urban growth

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Author Info
Chung-Yi Tse (University of Hong Kong)

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Abstract

This paper studies an urban growth model where learning through personal contacts could be more effective in a denser locale, whereas the effectiveness of learning through impersonal means of communications depends principally on the technology of communications rather than on the locale in which learning takes place. As a result of advances in communications technology, cities would be larger, and workers would spent more time on learning through personal contacts but may cut time on impersonal learning if the two kinds of learning investment are complements. Otherwise, cities could become smaller, while workers would spend more time on impersonal learning at the expense of time on learning through personal contacts. In a multi-sector economy, urban industrial diversity tends to increase or fall together with city size. (Copyright: Elsevier)

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File URL: http://dx.doi.org/10.1016/j.red.2007.07.005
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Publisher Info
Article provided by Elsevier for the Society for Economic Dynamics in its journal Review of Economic Dynamics.

Volume (Year): 11 (2008)
Issue (Month): 2 (April)
Pages: 413-433
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Handle: RePEc:red:issued:06-226

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Related research
Keywords: Urban growth Human capital investment Industrial diversity

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Find related papers by JEL classification:
O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes
R12 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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