This paper develops a two-region model of firm migration where moving is costly and firms have market power. In this setting, the decentralized equilibrium generates excessive inertia in firm movement relative to the 'first best' solution. Because the decentralized solution is inefficient, the...

Rapidly expanding urban populations have pushed out cities' geographic reach in recent years, leading to rising population densities in previously rural areas. The influx of new residents into these areas have caught many localities unprepared to provide commensurate local infrastructure...