Krugman's Core-Periphery Model with Heterogeneous Quality of Land

Luis Lanaspa () and Fernando Sanz
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Fernando Sanz: Faculty of Economics and Business Studies, University of Zaragoza, Doctor Cerrada 3, 50005 Zaragoza, Spain, fsanz@posta.unizar.es

Urban Studies, 1999, vol. 36, issue 3, 499-507

Abstract: In 1991, Krugman developed a general equilibrium model with two sectors and two regions, from which two patterns of industrial location could be deduced endogenously, namely symmetric dispersion at 50 per cent and total concentration. In this paper, we present a very simple extension to this original model. The consideration of regions with different agricultural populations, reflecting a different quality of land, allows us to deduce asymmetric distributions of the manufacturing sector. These asymmetric distributions complete and enrich the casuistry derived from the original approach, drawing it closer to the observable world.

Date: 1999
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Persistent link: https://EconPapers.repec.org/RePEc:sae:urbstu:v:36:y:1999:i:3:p:499-507

DOI: 10.1080/0042098993493

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