Agglomeration patterns in a multi-regional economy without income effects
José Gaspar (),
Sofia B.S.D. Castro () and
Joao Correia-da-Silva ()
Additional contact information
Sofia B.S.D. Castro: CMUP and Faculty of Economics, University of Porto
FEP Working Papers from Universidade do Porto, Faculdade de Economia do Porto
We study the long-run spatial distribution of industry using a multi-region core-periphery model with quasi-linear log utility (Pflüger, 2004). We show that a distribution in which industry is evenly dispersed among some of the regions while the other regions have no industry cannot be stable. A spatial distribution where industry is evenly distributed among all regions except one can be stable, but only if that region is significantly more industrialized than the other regions. When trade costs decrease, the type of transition from dispersion to agglomeration depends on the fraction of workers that are mobile. If this fraction is low, the transition from dispersion to agglomeration is catastrophic once dispersion becomes unstable. If it is high, there is a discontinuous jump to partial agglomeration in one region and then a smooth transition until full agglomeration. Finally, we find that mobile workers benefit from more agglomerated spatial distributions whereas immobile workers prefer more dispersed distributions. The economy as a whole shows a tendency towards over-agglomeration for intermediate levels of trade costs.
Keywords: Core-periphery model; Footloose Entrepreneur; Multiple regions; Welfare (search for similar items in EconPapers)
JEL-codes: R10 R12 R23 (search for similar items in EconPapers)
Pages: 41 pages
New Economics Papers: this item is included in nep-geo, nep-upt and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed
Downloads: (external link)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.fep.up.pt/investigacao/workingpapers/wp591.pdf [301 Moved Permanently]--> https://www.fep.up.pt/investigacao/workingpapers/wp591.pdf)
Journal Article: Agglomeration patterns in a multi-regional economy without income effects (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:por:fepwps:591
Access Statistics for this paper
More papers in FEP Working Papers from Universidade do Porto, Faculdade de Economia do Porto Contact information at EDIRC.
Bibliographic data for series maintained by ().