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Models of the new economic geography share a number of common conclusions, but also exhibit notable differences, in particular with respect to the shape of the location pattern and the efficiency of the market equilibrium. This reflects the fact that these models rely heavily on specific...
Persistent link: https://www.econbiz.de/10005233783
This paper provides a simple theory of geographical mobility which simultaneously explains people’s choice of … of production which seeks to obtain the highest possible economic return. Our theory comprehends applications to …
Persistent link: https://www.econbiz.de/10005762313
historically emerged as the core. The agglomeration rent which accrues to the mobile factor gives unions and governments in the …
Persistent link: https://www.econbiz.de/10005703558
The core-periphery model by Krugman (1991) has two 'dramatic' implications: catastrophic agglomeration and locational … and easily reversible transition from symmetry to agglomeration. …
Persistent link: https://www.econbiz.de/10005822499
received no attention in the new trade theory and the new economic geography. We set up a simple monopolistic competition model … into account. Our analysis furthermore implies that market-size based agglomeration forces are too weak to overcome the … a low elasticity of substitution) is very strong. This suggests that further agglomeration forces have to be invoked to …
Persistent link: https://www.econbiz.de/10005763486
This paper presents a simple, analytically solvable Chamberlinian agglomeration model. As in the canonical core …
Persistent link: https://www.econbiz.de/10005566532
-size distribution? Do they affect individual city sizes? Do they contribute to the productivity advantage of large cities and the …
Persistent link: https://www.econbiz.de/10010764586
larger cities left-truncates the productivity distribution whereas stronger agglomeration right-shifts and dilates the … cities toughen competition, allowing only the most productive to survive) and agglomeration economies (larger cities promote … interactions that increase productivity), possibly reinforced by localised natural advantage. To distinguish between them, we nest …
Persistent link: https://www.econbiz.de/10011279326
also identify equilibria with partial agglomeration of firms. Finally, we show that the incentives to subsidy education …
Persistent link: https://www.econbiz.de/10005762199
We develop a model with two asymmetric countries. Firms choose the number and the location of plants that they operate. The production of each firm increases when trade costs fall. The fall also induces multinationals to repatriate their production into a single country, which is likely to be...
Persistent link: https://www.econbiz.de/10005823000