EconPapers    
Economics at your fingertips  
 

Agglomeration and welfare: The core-periphery model in the light of Bentham, Kaldor, and Rawls

Sylvie Charlot, Carl Gaigne, Frederic Robert-Nicoud and Jacques Thisse

Post-Print from HAL

Abstract: The objective of this paper is to apply different welfare approaches to the canonical model developed by Krugman, with the aim of comparing the only two possible market outcomes, i.e. agglomeration and dispersion. More precisely, we use the potential Pareto improvement criteria, as well as the utilitarian and Rawlsian welfare functions. No clear answer emerges for the following two reasons: (i) in general, there is indetermination when compensation schemes are used and (ii) the best outcome heavily depends on societal values regarding inequalities across individuals. However, simulations undertaken for plausible values of the main parameters suggest that there might be excessive agglomeration.

Keywords: Agglomeration; Welfare; Economic geography; Compensation mechanism (search for similar items in EconPapers)
Date: 2006-01
References: Add references at CitEc
Citations: View citations in EconPapers (49)

Published in Journal of Public Economics, 2006, 90 (1-2), pp.325-347. ⟨10.1016/j.jpubeco.2004.12.002⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Agglomeration and welfare: The core-periphery model in the light of Bentham, Kaldor, and Rawls (2006) Downloads
Working Paper: Agglomeration and welfare: the core-periphery model in the light of Bentham, Kaldor, and Rawls (2006)
Working Paper: Agglomeration and Welfare: The Core-Periphery Model in the Light of Bentham, Kaldor and Rawls (2004) Downloads
Working Paper: Agglomeration and welfare: the core-periphery model in the light of Bentham, Kaldor, and Rawls (2003) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00754181

DOI: 10.1016/j.jpubeco.2004.12.002

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().

 
Page updated 2025-03-22
Handle: RePEc:hal:journl:halshs-00754181