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On Pitchforks And Tomahawks

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  • Michael Pflüger
  • Jens Südekum

Abstract

The core-periphery model by Krugman (1991) has two 'dramatic' implications: catastrophic agglomeration and locational hysteresis. We study this seminal model with CES instead of Cobb-Douglas upper tier preferences. This small generalization suffices to change these stark implications. For a wide range of parameters we find that the model exhibits instead a smooth and easily reversible transition from symmetry to agglomeration.

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Bibliographic Info

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

Volume (Year): 51 (2011)
Issue (Month): 2 (05)
Pages: 292-298

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Handle: RePEc:bla:jregsc:v:51:y:2011:i:2:p:292-298

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  1. Head, Keith & Mayer, Thierry, 2004. "The empirics of agglomeration and trade," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 59, pages 2609-2669 Elsevier.
  2. Ottaviano, Gianmarco Ireo Paolo & Thisse, Jacques-François, 2003. "Agglomeration and Economic Geography," CEPR Discussion Papers 3838, C.E.P.R. Discussion Papers.
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Cited by:
  1. Christian Ghiglino & Antonella Nocco, 2012. "When Veblen meets Krugman," Economics Discussion Papers 708, University of Essex, Department of Economics.

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