Over-simplification and tractability in quasi-linear neg models
Sylvain Barde and
John Pierson
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John Pierson: University of Kent [Canterbury]
SciencePo Working papers Main from HAL
Abstract:
An inconsistency is found in the demand side of the NEG models developed in Pflüger (2004) that follows from the absence of a non-negativity constraint on the consumption of agricultural goods. This seriously weakens the results of the original paper and those of ensuing contributions in Pflüger and Südekum (2008a,b). A solution to this problem is developed which imposes severe restrictions on the relative size of two of the core model parameters, the implications of which are examined.
Keywords: Agglomeration; new economic geography; quasi-linear utility (search for similar items in EconPapers)
Date: 2009-06-01
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Working Paper: Over-simplification and tractability in quasi-linear neg models (2009) 
Working Paper: Over-simplification and tractability in quasi-linear neg models (2009) 
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