solve analytically. We use the modified model to analyse the tendencies for geographical agglomeration of manufacturing … manufacturing tends to agglomerate for low trade costs. In the physical capital case, on the contrary, agglomeration will not occur …

-integrated firms is a counter-example to the strong agglomeration effects found in the CP model. A symmetric equilibrium will always be … stable and hence agglomeration is prevented. The introduction of vertically-integrated firms that can separate the location … original CP model and thus lead to more agglomeration. Second, it also tends to decrease the parameter space in which full …

these - and this is shown to be true also for perfectly coordinated tax increases. It is also shown that an agglomeration is … agglomeration for some levels of taxes. …

This Paper analyses industrial policy in a high wage open economy hosting an agglomeration consisting of vertically … sustaining an industrial agglomeration. Whether maintaining the agglomeration is compatible with a welfare maximizing policy is …

shows that inter-regional learning spillovers are a stabilizing force. Finally, the paper shows that agglomeration of …