Abstract
Firms in a monocentric city conforming in substance to the “new urban economics” produce an export commodity under agglomeration economies and employ homogeneous labor and capital. Workers reside about the CBD in decreasing densities with distance. A developer establishes a second export production center within the city's residential area. Conditions for economic viability and growth of the subcenter are examined, and its impacts on short-run and long-run city location patterns are discussed. A limiting condition on subcenter employment size is provided.
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