Agglomeration and Welfare with Heterogeneous Preferences

Fabien Candau; Marc Fleurbaey

doi:10.1007/s11079-010-9168-y

Agglomeration and Welfare with Heterogeneous Preferences

Fabien Candau, Marc Fleurbaey

Research output: Contribution to journal › Article › peer-review

1 Scopus citations

Abstract

This paper constructs a model of endogenous location of entrepreneurs with preference heterogeneity between individuals. Two main results are found. First, agglomeration and partial dispersion can be simultaneously stable but preference heterogeneity reduces the possibility of multiple equilibria. Secondly, measuring individual welfare in terms of equivalent income we show that in the case of agglomeration, the worst-off workers would prefer a dispersed equilibrium.

Original language	English (US)
Pages (from-to)	685-708
Number of pages	24
Journal	Open Economies Review
Volume	22
Issue number	4
DOIs	https://doi.org/10.1007/s11079-010-9168-y
State	Published - Sep 2011
Externally published	Yes

All Science Journal Classification (ASJC) codes

Economics and Econometrics

Keywords

F12
I3
R13

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10.1007/s11079-010-9168-y

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Agglomeration and Welfare with Heterogeneous Preferences

Abstract

All Science Journal Classification (ASJC) codes

Keywords

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