Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/34978 
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dc.contributor.authorPflüger, Michaelen
dc.contributor.authorTabuchi, Takatoshien
dc.date.accessioned2008-10-10-
dc.date.accessioned2010-07-07T11:31:13Z-
dc.date.available2010-07-07T11:31:13Z-
dc.date.issued2008-
dc.identifier.piurn:nbn:de:101:1-20081014150en
dc.identifier.urihttp://hdl.handle.net/10419/34978-
dc.description.abstractThis paper is motivated by the fact that, contrary to its importance in practice, the role of land for production has received no attention in the new trade theory and the new economic geography. We set up a simple monopolistic competition model and we show that, due to the factor proportions effect which emerges when land is used as a productive factor besides labor, a number of tenets of the new trade and geography literature no longer hold. We also show that in order to explain the stylized facts, notably that wages are higher in larger locations, land-use for production and housing has to be taken into account. Our analysis furthermore implies that market-size based agglomeration forces are too weak to overcome the very strong congestion force associated with competition for land, unless the consumers' desire of variety (as expressed by a low elasticity of substitution) is very strong. This suggests that further agglomeration forces have to be invoked to explain the agglomeration of economic activity observed in the real world.en
dc.language.isoengen
dc.publisher|aInstitute for the Study of Labor (IZA) |cBonnen
dc.relation.ispartofseries|aIZA Discussion Papers |x3716en
dc.subject.jelF12en
dc.subject.ddc330en
dc.subject.keywordTrade and locationen
dc.subject.keywordland for productionen
dc.subject.keywordagglomerationen
dc.subject.keywordrelative wageen
dc.subject.keywordhome market effecten
dc.subject.stwBodenen
dc.subject.stwBodenökonomiken
dc.subject.stwMonopolistischer Wettbewerben
dc.subject.stwNeue Außenhandelstheorieen
dc.subject.stwNeue ökonomische Geographieen
dc.subject.stwAgglomerationseffekten
dc.subject.stwRegionale Lohnstrukturen
dc.subject.stwTheorieen
dc.titleTrade and location with land as a productive factor-
dc.type|aWorking Paperen
dc.identifier.ppn581602684en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

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