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Agglomeration triggered by the number of regions: a NEG model with a quadratic subutility function

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  • Kensuke Ohtake

    (Osaka University)

Abstract

We extend the mathematical model proposed by Ottaviano et al. (Int Econ Rev 43(2): 409–435, 2002) to a multi-regional case and investigate the stability of the homogeneous stationary solution of the model in a one-dimensional periodic space. When the number of regions is two and three, the homogeneous stationary solution is stable under sufficiently high transport cost. On the other hand, when the number of regions is a multiple of four, the homogeneous stationary solution is unstable under any values of the transport cost.

Suggested Citation

  • Kensuke Ohtake, 2022. "Agglomeration triggered by the number of regions: a NEG model with a quadratic subutility function," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 10(1), pages 129-145, May.
    • Handle: RePEc:spr:etbull:v:10:y:2022:i:1:d:10.1007_s40505-022-00222-6
    DOI: 10.1007/s40505-022-00222-6
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    References listed on IDEAS

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    More about this item

    Keywords

    New economic geography; Differential equations; Racetrack economy; Self-organization; Spatial patterns; Number of cities;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models

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