Abstract
In this paper, a model of city systems is presented which is then used to discuss the normative problem of finding the optimum number of cities accomodating a given national population. The problem is related to that of determining, in the presence of scale economies, the optimum number of firms producing a given industry output at least cost. Therefore, recent findings of the literature on industrial organization can be adopted to our model of city systems. It is shown in which sense commonly observed deficits of local governments can be taken aspointing towards an excessive number of existing communities.
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