Continuous space core-periphery model with transport costs in differentiated agriculture

Kensuke Ohtake ()
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Kensuke Ohtake: Shinshu University

Portuguese Economic Journal, 2025, vol. 24, issue 3, No 6, 469-502

Abstract: Abstract The core-periphery model with transport costs in differentiated agriculture is extended to continuous space. A homogeneous stationary solution is unstable but exhibits re-multi-polarization; it is stabilized by both sufficiently low and sufficiently high manufacturing transport costs but destabilized by intermediate manufacturing transport costs. It is numerically observed that a solution starting from around the unstable homogeneous solution eventually forms a spike-like agglomeration. Moreover, the re-multi-polarization also appears in the sense that the number of spikes goes from decreasing to increasing as the manufacturing transport costs decrease. It is also observed that lower agricultural transport costs and a stronger preference for agricultural variety promote agglomeration.

Keywords: Continuous racetrack economy; Economic agglomeration; Differentiated agricultural goods; New economic geography; Self-organization; Transport costs (search for similar items in EconPapers)
JEL-codes: C62 C63 C68 Q10 R12 R40 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s10258-025-00273-0

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