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An Evolutionary New Economic Geography Model

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  • Wei Fan
  • Frederick Treyz
  • George Treyz
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    Abstract

    In this paper we present a general new economic geography model with multiple industries and regions, full labor and capital mobility, land use in production and consumption, and a dynamic adjustment process in which consumers maximize utility and firms respond to nonzero profits. All industries use intermediate inputs as well as land, labor, and capital. Systems of cities form endogenously within this framework, including asymmetrical urban hierarchies and cities of different sizes and industry compositions. Each urban area has a bid-rent gradient and zones with land uses and densities as in the von Thünen model. The equilibrium depends not only on initial conditions but also on speeds of adjustment. The model is a prototype for empirical implementation, as illustrated with a simulation of the effects of transportation cost reductions. Copyright 2000 Blackwell Publishers

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    Bibliographic Info

    Article provided by Wiley Blackwell in its journal Journal of Regional Science.

    Volume (Year): 40 (2000)
    Issue (Month): 4 ()
    Pages: 671-695

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    Handle: RePEc:bla:jregsc:v:40:y:2000:i:4:p:671-695

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    Cited by:
    1. Bert Hof & Arjan Heyma & Toon Hoorn, 2012. "Comparing the performance of models for wider economic benefits of transport infrastructure: results of a Dutch case study," Transportation, Springer, vol. 39(6), pages 1241-1258, November.
    2. Bröcker, Johannes & Korzhenevych, Artem, 2013. "Forward looking dynamics in spatial CGE modelling," Economic Modelling, Elsevier, vol. 31(C), pages 389-400.
    3. Theodore Tsekeris & Klimis Vogiatzoglou, 2011. "Spatial agent-based modeling of household and firm location with endogenous transport costs," Netnomics, Springer, vol. 12(2), pages 77-98, July.
    4. Kurt Geppert & Dieter Vesper, 2006. "Einnahmen- und Ausgabeneffekte der Hauptstadtfunktion für Berlin: Endbericht ; Forschungsprojekt im Auftrag der Senatsverwaltung für Finanzen, Berlin," DIW Berlin: Politikberatung kompakt, DIW Berlin, German Institute for Economic Research, volume 14, number pbk14, March.
    5. Ryusuke Ihara, 2011. "Weber problem in the NEG: a case study of Asia," The Annals of Regional Science, Springer, vol. 47(1), pages 37-50, August.
    6. van Exel, Job & Rienstra, Sytze & Gommers, Michael & Pearman, Alan & Tsamboulas, Dimitrios, 2002. "EU involvement in TEN development: network effects and European value added," Transport Policy, Elsevier, vol. 9(4), pages 299-311, October.
    7. John Bradley & Gerhard Untiedt & Edgar Morgenroth, 2003. "Macro-regional evaluation of the structural funds using the Hermin modelling framework," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2003(3).
    8. George Backus & Thomas Lowry & Drake Warren, 2013. "The near-term risk of climate uncertainty among the U.S. states," Climatic Change, Springer, vol. 116(3), pages 495-522, February.
    9. Ho Yeon KIM & Petra de Jong & Jan Rouwendal & Aleid Brouwer, 2012. "Shrinking population and the urban hierarchy
      [Housing preferences and attribute importance among Dutch older adults: a conjoint choice experiment]
      ," ERSA conference papers ersa12p350, European Regional Science Association.
    10. Michael Roos, 2003. "Internationale Integration und die Neue Ökonomische Geographie," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 4(1), pages 107-121, 02.
    11. Konstantina Gkritza & Kumares Sinha & Samuel Labi & Fred Mannering, 2008. "Influence of highway construction projects on economic development: an empirical assessment," The Annals of Regional Science, Springer, vol. 42(3), pages 545-563, September.
    12. Moretti, Luigi, 2004. "I modelli macroeconomici per la valutazione dell'impatto dei Fondi strutturali nelle economie a Obiettivo 1
      [Macroeconomic Models Used for the Impact Evaluation of the Structural Funds in Objective
      ," MPRA Paper 18868, University Library of Munich, Germany.
    13. Timothy J. Bartik & George A. Erickcek, 2012. "Simulating the Effects of Michigan's MEGA Tax Credit Program on Job Creation and Fiscal Benefits," Upjohn Working Papers and Journal Articles 12-185, W.E. Upjohn Institute for Employment Research.
    14. Marcin Bogdañski, 2012. "Modern theories of regional development – a review of some concepts," Oeconomia Copernicana, Polskie Towarzystwo Ekonomiczne Oddzial w Toruniu, Wydzial Nauk Ekonomicznych i Zarzadzania UMK, vol. 2, pages 25-41.
    15. Felici, F. & Paniccia, R. & Rocchi, Benedetto, 2008. "Economic Impact of Rural Development Plan 2007 2013 in Tuscany," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44256, European Association of Agricultural Economists.
    16. Bondonio, Daniele, 2007. "The Employment Impact of Business Incentive Policies: a Comparative Evaluation of Different Forms of Assistance," POLIS Working Papers 92, Institute of Public Policy and Public Choice - POLIS.
    17. Theodore Tsekeris & Klimis Vogiatzoglou & Stelios Bekiros, 2011. "Multi-Regional Agent-Based Modeling of Household and Firm Location Choices with Endogenous Transport Costs," ERSA conference papers ersa10p479, European Regional Science Association.
    18. Kim, Ho Yeon, 2012. "Shrinking population and the urban hierarchy," IDE Discussion Papers 360, Institute of Developing Economies, Japan External Trade Organization(JETRO).

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