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We extend the model by Krugman (1980) to a multi-country set-up and show that the ‘home-market effect’ highlighted with two countries does not readily extend to such a general setting. In particular, we prove that the most important result, namely the disproportionate causation from demand...
Persistent link: https://www.econbiz.de/10005114440
show that there exists a path of stable equilibria such that the industry, first, experiences progressive agglomeration … of the increasing urban costs associated with the process of agglomeration. …
Persistent link: https://www.econbiz.de/10005123704
We consider an economic geography model in which all firms and workers are mobile, but the agglomeration of firms and … agglomeration arises for low transport costs. We also show that firms supplying non-tradable consumer services are more agglomerated …
Persistent link: https://www.econbiz.de/10005792140
likely to involve too much agglomeration compared to the former. …
Persistent link: https://www.econbiz.de/10005661828