Urban and Regional Economics Seminars
Search and Zipf. A Theory of Frictional Spatial Equilibrium
Benoit Schmutz (Polythechnique )
Friday 29 November 2019 13:00 - 14:30
32L 1.04, 1st Floor Conference Room, 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.
This event will take place in 32L 1.04, 1st Floor Conference Room, LSE, 32 Lincoln's Inn Fields, London WC2A 3PH.The building is labelled on the map.
This series is part of the CEP's Urban and spatial programme.