agglomeration in one of the regions. We investigate two cases, one in which regions within countries are of di.erent sizes, and the …

-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. …

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 …

cluster together, turning location into a self-reinforcing process. Agglomeration raises the price of immobile local factors …