The multiregional core-periphery model: The role of the spatial topology

Javier Barbero and José Zofío

No 2012/12, Working Papers in Economic Theory from Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History)

Abstract: We use the multiregional core-periphery model of the new economic geography to analyze and compare the agglomeration and dispersion forces shaping the location of economic activity for a continuum of network topologies characterized by their degree of centrality, and comprised between two extremes represented by the homogenous (ring) and the heterogeneous (star) configurations. Resorting to graph theory, we systematically extend the analytical tools and graphical representations of the core-periphery model for alternative spatial configuration, and study the stability of the alternative equilibria in terms of the sustain and break points. We study new phenomena such as the absence of any stable distribution of economic activity for some range of transport costs, and the infeasibility of the dispersed equilibrium in the heterogeneous space, resulting in the introduction of the concept pseudo flat-earth as a long run-equilibrium corresponding to an uneven distribution of economic activity between regions.

Keywords: New economic geography; graph theory; degree of centrality; bifurcation; equilibria and stability analysis. (search for similar items in EconPapers)
JEL-codes: C62 C63 F12 R12 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2012-11
New Economics Papers: this item is included in nep-geo and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

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