SPATIAL AGGLOMERATION AND DISPERSION:REVISITING THE HELPMAN MODEL

An-Ming Wang and Chung-Hsin Yang

Hitotsubashi Journal of Economics, 2014, vol. 55, issue 1, 1-20

Abstract: This paper presents a modified Helpman model (1998) with an added tradable agriculture good, and modifies the manufacturing production function according to Forslid and Ottaviano (2003) to identify all possible spatial configurations of a two-region economy. Moreover, the current work neatly separates the four spatial shaping effects: market size effect, market crowding effect, cost of living effect, and urban congestion effect, and diagrammatically exposes how these forces shape spatial configurations as the degree of trade freeness increases.

Keywords: core-periphery model; agglomeration and dispersion; bell-shaped core-periphery; dispersion black hole (search for similar items in EconPapers)
JEL-codes: F12 F22 R12 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:hit:hitjec:v:55:y:2014:i:1:p:1-20

DOI: 10.15057/26812

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