Asymmetrien in der Neuen Ökonomischen Geographie: Modelle, Simulationsmethoden und wirtschaftspolitische Diskussion = Asymmetries in new economic geography: models, simulation methods and economic discussion

Sascha Frohwerk

No 3, Potsdamer Schriften zur Raumwirtschaft from Universität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät

Abstract: The new economic geography explains agglomerations based on a microeconomic general equilibrium model, witch is usually assumed to be symmetric in the sense, that regions are of the same size and transport costs and expenditure shares are the same. As a result, the models can explain why an agglomeration occurs, but not in witch region. This book modifies three of the most influential models of the new economic geography and assumes various asymmetries. It compares the results to the symmetric cases. Not only theoretical aspects but also methods of simulation are discussed in detail. This methods can be applied to a wide variety of models. To show the political implications of the theoretical results, one of the asymmetric models is applied to the economical development in germany after reunification. The model is able to explain the persistent difference in wages between east and west and the simultaneous incomplete agglomeration in the west.

Keywords: new economic geography; methods of simulation; agglomeration; regional development (search for similar items in EconPapers)
JEL-codes: P25 C63 R13 R23 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cmp, nep-geo, nep-ger, nep-hpe and nep-ure
Date: 2011-03
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