A STOCHASTIC MODEL OF COMPETITION BETWEEN TWO CITIES FOR MEMBERS OF THE CREATIVE CLASS

Amitrajeet A. BATABYAL

Arthur J. Gosnell Professor of Economics, Department of Economics, Rochester Institute of Technology, Rochester, NY 14623-5604, USA

aabgsh@rit.edu

Seung Jick YOO

Graduate School of International Service, Sookmyung Women’s University, Seoul, Republic of Korea

sjyoo@sookmyung.ac.kr

*Corresponding Author

Abstract

Batabyal and Yoo (2019) have recently obtained a significant result in their analysis of the use of utilitarian and Rawlsian policies by two cities to attract the creative class. They show that if one city switches to a Rawlsian or more egalitarian objective when the other city remains utilitarian, the aggregate economy of two cities becomes less egalitarian. We show that this result depends fundamentally on the assumption that the creative class population can be described by a triangular probability distribution. If this population is modeled instead with an inverted triangular probability distribution then the above result is reversed in the sense that the welfare of the worst-off member of the creative class is always enhanced when one city switches to a Rawlsian or more egalitarian objective, irrespective of the objective of the other city.

Keywords: City, Competition, Creative Class, Rawlsian, Utilitarian

JEL classification: R11, D63
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AGGLOMERATION PROCESSES ON THE RUSSIAN EUROPEAN NORTH: VOLOGDA REGION EXPERIENCE

Sergey KOZHEVNIKOV

Candidate of Sciences (Economic), Senior Researcher head of laboratory, Vologda Research Center of the RAS, Russia

kozhevnikov_sa@bk.ru

Abstract

The article presents the key features of the development of urban agglomerations at presents. There are shown the agglomeration processes features which are currently taking place in the Vologda region.  It is justified that the monocentric Vologda agglomeration is being formed in the region. This is based on the research of the scientific literature, the main strategic documents and the use of the existing methodological tools. The tightness of the connection between the core and the reference territories has been proved on the basis of an analysis of key trends in the socioeconomic development of these municipalities in 1991-2016. On the basis of conducted sociological surveys of the inhabitants of Vologda and adjacent municipal districts, as well as heads of these municipalities, there were identified socio-economic, industrial, cultural and other links of these territories. There were identified the key challenges and threats for the further development of agglomeration processes and substantiated the priority directions for managing the development of the Vologda agglomeration.

Keywords: city, urban agglomeration, sociological survey

JEL classification: R12
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ZIPF’S LAW AS ASSESSMENT TOOL OF URBAN INEQUALITY

Inna MANAEVA

World Economy Chair –Belgorod State National Research University, Russia, http://www.bsu.edu.ru
In.manaeva@yandex.ru

Svetlana RASTVORTSEVA

World Economy Chair –Belgorod State National Research University, Russia, http://www.bsu.edu.ru
Srartvortseva@gmail.ru

Abstract

The paper is concerned with the topical issues of regional economics – urban inequality in the Russian Federation. Empirical investigations of Zipf’s law were studied in the foreign and Russian literature. Application of this law for assessment of urban inequality using the method of least squares was substantiated. Assessment of urban inequality within the boundaries of the RF federal districts by the indices of population, volume of own production of goods and services is carried out in the paper. The authors used the data of the Federal State Statistics Service for 2014, the investigation included the settlements with the status of a town and with the population over 100 thousand people. Zipf’s law displays over the entire territory of Russia. By the population index in the federal districts, Zipf’s factor varies within the range from – 0.7 (Northwestern Federal District) to – 0.9 (North Caucasian Federal District). As a result of the performed analysis of the Russia’s cities by the population index, Zipf’s factor is within the range from –0.3 (Northwestern Federal District) to –1.2 (Central Federal District). Analysis of the volume of production of goods and services determined the range of Zipf’s factor from –0.26 (North Caucasian Federal District) to – 0.7 (Central and Volga Federal Districts). By the index of population and volume of production of goods and services the following “primate cities” are determined: Moscow and Saint Petersburg, Yekaterinburg (population), which allows to draw a conclusion on their dominance in urban system and high differentiation of cities by these indices. The obtained empirical estimators prove that Russia has no intermediate group of cities macroregional centers. The results of the investigation can be used for creation of methodological tools to develop the mechanisms of smoothing of interregional inequality, program of economic and social development of cities.

Keywords: city, spatial inequality, Zipf’s law, population, population density

JEL classification: R12

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