CEP/Geography Urban and Regional Economics Seminars
Search and Zipf. A Theory of Frictional Spatial Equilibrium
Benoit Schmutz (École Polytechnique )
Friday 29 November 2019 13:00 - 14:30
SAL 1.04, 1st Floor Conference Room, Sir Arthur Lewis Building, LSE, 32 Lincoln's Inn Fields, London WC2A 3PH
About this event
This paper proposes a theory of a system of cities based on a general equilibrium search and matching model of individual careers with an explicit spatial component. Heterogeneous firms and workers continuously decide where to locate within a set of imperfectly connected local labor markets and engage in wage bargaining using both remote and local match opportunities as threat points. While being parsimoniously parameterized and not resting upon restrictive assumptions regarding labor mobility, the model allows us to introduce the structural origins of workers’ sorting, firms’ selection and matching-based agglomeration economies into a unified framework and study their impact on city size distribution.
Participants are expected to adhere to the CEP Events Code of Conduct.
This event will take place in SAL 1.04, 1st Floor Conference Room, Sir Arthur Lewis Building, LSE, 32 Lincoln's Inn Fields, London WC2A 3PH.The building is labelled SAL on the LSE campus map. You can also find us on Google Maps. For further information, go to contact us.
Urban and Regional Economics Seminars are part of the CEP's Urban and spatial programme.