Tang, Xiang - In: Frontiers of Economics in China 7 (2012) 1, pp. 94-121
As an extension of the neoclassical urban systems theory (Henderson, 1974), we develop a general theory of regional (inter-city) price dispersion which also explains the ¡°subnational Penn effect,¡± i.e., cross-city correlations among population size, prices, real income and human capital...