Abstract
In this paper a dynamic model of urban pattern formation with endogenous knowledge and capital accumulation is proposed. The Alonso model is extended to include two of the most important dynamic forces for urban development—capital accumulatin and technological progress. The standard assumption of the existence of the central business district (CBD) is still accepted in this approach. It is assumed that two production sectors (industry and service) and one knowledge production sector (research institutions and university) are located at the CBD. First, a compact framework for analysing dynamic interactions of the three sectors and urban pattern formation is suggested. Then, the existence of stationary urban patterns is guaranteed and the stability conditions provided. Last, the effects of changes in government's research policy and some other parameters upon the system are examined.
Published Version
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