Solitary City: Time, Space and Urban Policy

We examine the positive and normative implications of externality‐generating activities in the setting of an urban economy wherein households equilibrate their time allocation between social networking and business networking. Since every interaction is time consuming, households face a trade‐off be...

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Bibliographic Details
Published inThe Manchester school Vol. 85; no. 6; pp. 744 - 764
Main Author Oshiro, Jun
Format Journal Article
LanguageEnglish
Published Manchester Blackwell Publishing Ltd 01.12.2017
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ISSN1463-6786
1467-9957
DOI10.1111/manc.12170

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Summary:We examine the positive and normative implications of externality‐generating activities in the setting of an urban economy wherein households equilibrate their time allocation between social networking and business networking. Since every interaction is time consuming, households face a trade‐off between enjoying social interaction and participating in business networks. We develop a monocentric city model with a time allocation decision to investigate the influence of externality‐generating activities on the spatial structure of cities and assess the urban policies meant to facilitate social interaction. Two interdependent magnification forces are generated from social interactions and human capital spillovers. Households are subject to too much social isolation when a positive correlation exists between agglomeration and productivity.
Bibliography:I would like to thank the editor, Eyal Winter and two anonymous referees for their insightful comments. I thank Koichi Futagami, Hideo Konishi, Tetsuo Ono, Yasuhiro Sato, Kazuhiro Yamamoto and participants at the 2013 Japanese Economic Association Meeting in Toyama University for their very useful comments and discussions. This work was supported by JSPS KAKENHI Grand Number 24‐1393, 15K17064. I acknowledge financial support from Okinawa University.
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ISSN:1463-6786
1467-9957
DOI:10.1111/manc.12170