In recent work, Paul Schweinzer and co-authors propose a simple model of distribution of economic activity across cities of endogenously determined size and number. This distribution is determined by individual incentives in the tradition of threshold models of social interaction. The individuals in this model are endowed with idiosyncratic entrepreneurial creativity, the realization of which requires spatial agglomeration linked to a crowding cost that is higher in cities than in rural dwellings. While the focus on distributive aspects comes at the cost of highly stylized behavior, the work provides a tractable framework to think about the interlinkages between various measures of urban development. In earlier work, Paul explored more theoretical questions such as mixed moral hazard and adverse selection models in teams, bidding behaviour of risk-averse agents in auctions, possibilities for full implementation when a principal has access to statistical information on the agents’ types, and efficient reorganisation of waiting queues. During his stay in Minneapolis, Paul intends to pursue research on constitutional and contractual amendment.
Paul earned his Magister degree from the University of Vienna, his MSc from the London School of Economics, and his PhD from the University of London. After a postdoc at the University of Bonn, he worked at the University of York, England, before returning to his native Austria to take up the chair of microeconomics at Alpen-Adria-Universität Klagenfurt.