AGGLOMERATION AND REGIONAL COSTS OF LIVING*
在新经济地理学模型中引入本地服务部门，解释了为何集聚区生活成本更高，并指出高生活成本会降低实际工资，因此并非所有人都适合住在核心区。
ABSTRACT Standard models of the new economic geography predict that costs of living are lower in the core than in the periphery. But in reality they tend to be higher in agglomeration areas, mainly because of regional differences in housing costs. In this paper, we add a home goods sector to the seminal NEG model of Krugman (1991) . We show that a core–periphery structure can endogenously emerge in which the core is the more expensive area. This result has an important normative implication. Since higher costs of living imply falling real wages if there is no nominal wage premium, it is not desirable for everybody to live in the core region.