Increasing Returns in Transportation and the Formation of Hubs
AbstractThe spatial structure of transport networks is subject to increasing returns in transportation, distance, and density economies. Transport costs between locations are thus, in general, endogenous, and are determined by the interaction between the spatial distribution of transport demand and these increasing returns, although such interdependence has long been ignored in regional models. By using a simple model, the present paper investigates the characteristics of viable hub structures (in terms of spacing and hierarchical relations) given the presence of density and distance economies in transportation.
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Bibliographic InfoPaper provided by Research Institute of Economy, Trade and Industry (RIETI) in its series Discussion papers with number 12005.
Length: 31 pages
Date of creation: Jan 2012
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Other versions of this item:
- Tomoya Mori, 2012. "Increasing returns in transportation and the formation of hubs," Journal of Economic Geography, Oxford University Press, vol. 12(4), pages 877-897, July.
- Tomoya Mori, 2011. "Increasing Returns in Transportation and the Formation of Hubs," KIER Working Papers 770, Kyoto University, Institute of Economic Research.
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
- R49 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Other
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-01-25 (All new papers)
- NEP-GEO-2012-01-25 (Economic Geography)
- NEP-TRE-2012-01-25 (Transport Economics)
- NEP-URE-2012-01-25 (Urban & Real Estate Economics)
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