The core-periphery model with three regions

Sofia B. S. D. Castro (), Joao Correia-da-Silva and Pascal Mossay ()
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Sofia B. S. D. Castro: Faculdade de Economia and Centro de Matematica, Universidade do Porto
Pascal Mossay: School of Economics, Henley Business School, University of Reading and Departamento de Fundamentos del Analisis Economico, Universidad de Alicante.

FEP Working Papers from Universidade do Porto, Faculdade de Economia do Porto

Abstract: We study a 3-region core-periphery model à la Krugman and compare our results with those of the standard 2-region model. The conditions for the stability of the dispersion and concentration configurations are established. Like in the 2-region model, dispersion and concentration can be simultaneously stable. We show that the 2- region (3-region) model favors the dispersion (concentration) of economic activity. Finally, we extend the core-periphery model to the case of n regions and show that stability of concentration with 2 regions implies stability of concentration with any even number of regions.

Keywords: new economic geography; core-periphery (search for similar items in EconPapers)
JEL-codes: R12 R23 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2009-06
New Economics Papers: this item is included in nep-geo and nep-ure
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:por:fepwps:325

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