The Primacy and Welfare Costs of the Sub-Optimal Size Distribution of Cities under External Diseconomies

다국어 초록 (Multilingual Abstract)

Properties of the optimal size distribution of cities under external diseconomies are derived by using the hierarchy model, in which the agglomeration economy and the external diseconomy are explicitly considered. As a benchmark case, welfare costs of the sub-optimal size distribution of cities, WC, and the optimal size of the prime city, OSP, without external diseconomies are calculated. Since there are no data for externality costs of cities, WS and OSP under various degrees of external diseconomies are obtained by the simulation. General formulae relating benchmark WC and OSP with those under conjectured degree of external diseconomies are constructed.