Lozano, José Luis Sáez; Garza, Pablo Brañas - In: Estudios Económicos 16 (2001) 1, pp. 73-104
This work presents a static model of optimal city size. The supply is characterized by firms under imperfect competition; families with preferences for variety form the demand side. The optimal size is sensitive to economies of agglomeration (or congestion) and to the households’ utility...