This paper studies the social desirability of agglomeration and the efficiency arguments for policy intervention in a … stable equilibria with partial agglomeration of firms in addition to core-periphery equilibria for intermediate levels of … trade costs. Our central finding is that the market equilibrium is characterised by over-agglomeration for high trade costs …

new economic geography type, in which there are agglomeration gains in cities but not in rural areas. These gains are …

agglomeration is shown to be always sustainable, which complements existing results in literature …

the origin of their differences. -- new economic geography ; agglomeration ; location pattern ; regional policy …

particular with respect to the shape of the location pattern. Some models imply a catastrophic agglomeration process with … hysteresis, so that concentration in one region is not easily reversible. Other models suggest that agglomeration may be smooth …

, while the peripheral regions lose residents. -- Transport costs ; agglomeration ; urban systems … peripheren Städte Einwohner verlieren. -- Transportkosten ; Agglomeration ; Städtesysteme …

-cost reduction effects at low transport costs can be so strong that runaway agglomeration dynamics appear in a manner consistent with …