Capitalization of Productivity Growth in Urban Land Rent
Resource information
Date of publication
Septiembre 2016
Resource Language
ISBN / Resource ID
OSF_preprint:461D4-82D-B6D
The first order effect of a productivity increment in the output sector of a monocentric city which increase wages in the city is exactly capitalized in the increment in land rent in the city. We observe this result in the "open city" model in which a worker's utility level in city i is determined outside of city i.