|
|
|
|
|
|
by sgron
3382 days ago
|
|
|
Sure they can. That there is a natural bound relative to other fundamentals in no way means that the absolute price cannot unboundedly increase. Any in any case, the most thorough spatial equilibrium analysis suggests that there is natural agglomeration of high skill/wage (locally positive feedback). The reference is Diamond (AER 2016), but the working version of her job market paper is a bit more complete: http://web.stanford.edu/~diamondr/jmp_final_all_files.pdf |
|
|