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We investigate where cities are located in a spatial economy and why they tend to get "locked-in" at particular sites. Building on Fujita and Krugman (1995) we show that geography and/or transportation technology must exhibit some "non-smoothness" for cities to possibly become "locked-in" in...
Persistent link: https://www.econbiz.de/10005043181
Paul Krugman has clarified the microeconomic underpinnings of both spatial economic agglomerations and regional imbalances at national and international levels. He has achieved this with a series of remarkably original papers and books that succeed in combining imperfect competition, increasing...
Persistent link: https://www.econbiz.de/10005497703
-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 …
Persistent link: https://www.econbiz.de/10005789037
agglomeration of economic activities. …
Persistent link: https://www.econbiz.de/10005043195
models involving spatial agglomeration of economic activities. The proposed method overcomes the limitations of the Turing … (1952) approach that has been used to analyze the emergence of agglomeration in the multi-regional core-periphery (CP) model … of Krugman (1993, 1996). In other words, the proposed method allows us to examine whether agglomeration of mobile factors …
Persistent link: https://www.econbiz.de/10008541511
heterogeneity smooths the agglomeration patterns but that it should be considered neither as a dispersion force nor as an … agglomeration force. Indeed, the introduction of taste heterogeneity makes an initially dispersed economy less dispersed and an …
Persistent link: https://www.econbiz.de/10005008443
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 …
Persistent link: https://www.econbiz.de/10005067355
This paper uses a full-scale CGE-model - calibrated on 1992 data - to investigate the effects of European integration on the location of industrial production. Our results reveal large differences among individual industries. Industries with high scale elasticities typically display a...
Persistent link: https://www.econbiz.de/10005067664
cluster together, turning location into a self-reinforcing process. Agglomeration raises the price of immobile local factors …
Persistent link: https://www.econbiz.de/10005662027
Peaks and troughs in the spatial distributions of population, employment and wealth are a universal phenomenon in search of a general theory. Such spatial imbalances have two possible explanations. In the first, uneven economic development can be seen as the result of the uneven distribution of...
Persistent link: https://www.econbiz.de/10005662148