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Optimal transportation and the structure of cities

Ekeland, Ivar; Carlier, Guillaume (2003), Optimal transportation and the structure of cities. https://basepub.dauphine.fr/handle/123456789/11468

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Type
Document de travail / Working paper
Date
2003
Series title
Université Paris-Dauphine
Published in
Paris
Pages
34
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Author(s)
Ekeland, Ivar
Carlier, Guillaume
Abstract (EN)
Following the recent analysis of Lucas and Rossi-Hansberg [10],we study the equilibrium structure of cities. By adopting a different(monetary) specification of commuting costs , we are able to provethe existence of equilibrium in more general situations: non-circularcities, or multi-sectorial production. The main mathematical tool inthis paper is the use of optimal transportation theory. This theoryoffers a new framework, both powerful and robust for problems ingeographical economics.
Subjects / Keywords
equilibrium city; optimal transportation; zoning; production externalities
JEL
R13 - General Equilibrium and Welfare Economic Analysis of Regional Economies
D58 - Computable and Other Applied General Equilibrium Models
C62 - Existence and Stability Conditions of Equilibrium