How to Value an Urban Network
Oleg A. Smirnov
University of Toledo - Department of Economics
March 22, 2011
This article develops a simple model of an urban network by combining a graph-theoretic approach with basic micro-economic theory. Use value of the urban network is defined by total rents earned by economically independent rent-charging node-owners. In the equilibrium, the economic rent in the urban network is the dominant factor affecting the size and the core-periphery composition of the spatial economy. The marginal cost of transportation and production, and hence, location rents and producer profits, are weaker determinants of the spatial economy that are significant only in smaller economies and mostly vanish in larger ones.
Number of Pages in PDF File: 28
Keywords: economic network, node-rent, core-periphery, city size
JEL Classification: R12, L14, D2working papers series
Date posted: April 11, 2011
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