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On Pitchforks and Tomahawks

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Author Info
Michael Pflüger () (University of Passau, DIW Berlin and IZA)
Jens Südekum () (University of Duisburg-Essen and IZA)

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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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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3258.

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Length: 18 pages
Date of creation: Dec 2007
Date of revision:
Handle: RePEc:iza:izadps:dp3258

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Related research
Keywords: core-periphery model; new economic geography; agglomeration; bifurcation pattern;

Find related papers by JEL classification:
F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
F15 - International Economics - - Trade - - - Economic Integration
F22 - International Economics - - International Factor Movements and International Business - - - International Migration
R12 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
R50 - Urban, Rural, and Regional Economics - - Regional Government Analysis - - - General

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Takatoshi Tabuchi & Jacques-Francois Thisse, 2001. "Labor Mobility and Economic Geography," CIRJE F-Series CIRJE-F-99, CIRJE, Faculty of Economics, University of Tokyo. [Downloadable!]
  2. Ottaviano, Gianmarco & Thisse, Jacques-Francois, 2004. "Agglomeration and economic geography," 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 58, pages 2563-2608 Elsevier. [Downloadable!] (restricted)
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  3. 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. [Downloadable!] (restricted)
    Other versions:
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