Increasing Returns in Transportation and the Formation of Hubs

Tomoya Mori

No 770, KIER Working Papers from Kyoto University, Institute of Economic Research

Abstract: The spatial structure of transport network is subject to increasing returns in transportation, distance and density economies. Transport costs between locations are thus in general endogenous, and are determined by the interaction between the spatial distribution of transport demand and these increasing returns, although such interdependence has long been ignored in regional models. By using a simple model, the present paper explains the formation of transport hubs endogenously, and shows how the balance of these two types of increasing returns influences the spatial distribution of transport hubs.

Keywords: Formation of a transport hub; Distance economies of transportation; Density economies of transportation (search for similar items in EconPapers)
JEL-codes: R12 R49 (search for similar items in EconPapers)
Pages: 28pages
Date: 2011-04
New Economics Papers: this item is included in nep-geo and nep-ure
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Increasing returns in transportation and the formation of hubs (2012)
Working Paper: Increasing Returns in Transportation and the Formation of Hubs (2012)
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