Economics at your fingertips  

A model of economic geography with demand-pull and congestion costs

Olga Alonso-Villar

Papers in Regional Science, 2008, vol. 87, issue 2, 261-276

Abstract: This article proposes a simple model of economic geography by which to derive analytical results when jointly considering two centrifugal forces - congestion costs together with the pull demand effect - within the Dixit-Stiglitz-Iceberg framework. In this vein, we develop a unified model with labour mobility that combines some of the features of Tabuchi (1998) with those of Forslid and Ottaviano (2003). We analytically show that when considering the effects of congestion costs, the dispersion of economic activity is possible not only at high, but also at low transport costs. This result corroborates previous numerical simulations conducted by Tabuchi (1998). Copyright (c) 2008 the author(s). Journal compilation (c) 2008 RSAI.

Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link) link to full text (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: A model of economic geography with demand pull and congestion costs (2006) Downloads
Working Paper: A Model of Economic Geography with Demand Pull and Congestion Costs 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:

Access Statistics for this article

Papers in Regional Science is currently edited by Jouke van Dijk

More articles in Papers in Regional Science from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().

Page updated 2018-09-02
Handle: RePEc:bla:presci:v:87:y:2008:i:2:p:261-276