Behrens, Kristian; Robert-Nicoud, Frédéric - Centre Interuniversitaire sur le Risque, les Politiques … - 2009
inequality increases at a decreasing rate in city size ('inequality'). To account simultaneously for these facts, we develop a … microfounded model of endogenous city formation in which urban centres select the most productive agents. Income inequality is … size, how they interact through the channels of trade, and how inter-city trade influences intra-city income inequality. …