期刊
JOURNAL OF ECONOMIC GEOGRAPHY
卷 6, 期 3, 页码 323-346出版社
OXFORD UNIV PRESS
DOI: 10.1093/jeg/lbi020
关键词
heterogeneous firms; economic geography; estimation of agglomeration economies; home market effect
A Melitz-style model of monopolistic competition with heterogeneous firms is integrated into a simple new economic geography model to show that the standard assumption of identical firms is neither necessary nor innocuous. We show that relocating to the big region is most attractive for the most productive firms; this implies interesting results for empirical work and policy analysis. A 'selection effect' means standard empirical measures overestimate agglomeration economies. A 'sorting effect' means that a regional policy induces the highest productivity firms to move to the core and the lowest productivity firms to the periphery. We also show that heterogeneity dampens the home market effect.
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