【摘要】Money wages will vary among cities in an economy with perfect labor mobility, due to differences in costs of producing nontraded goods. Commuting costs contribute to making money wages higher in large cities. Increasing negative technological externalities, such as pollution and congestion, also make money wages higher in larger cities. Such externalities tend to make big cities too big, because marginal is greater than average externality. Internalizing the externalities would be likely to make a city larger if the externalities emanate from production of nontraded goods, but might make the city smaller if the externalities emanate from export production.
【文献来源】Tolley G S. The welfare economics of city bigness[J]. Journal of Urban Economics, 2006, 1(3):324-345.