Increasing Returns in Transportation and the Formation of Hubs
AbstractThe spatial structure of transport network 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 explains the formation of transport hubs endogenously, and shows how the balance of these two types of increasing returns influences the spatial distribution of transport hubs.
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Bibliographic InfoPaper provided by Kyoto University, Institute of Economic Research in its series KIER Working Papers with number 770.
Date of creation: Apr 2011
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More information through EDIRC
Formation of a transport hub; Distance economies of transportation; Density economies of transportation;
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.
- MORI Tomoya, 2012. "Increasing Returns in Transportation and the Formation of Hubs," Discussion papers 12005, Research Institute of Economy, Trade and Industry (RIETI).
- 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-2011-05-07 (All new papers)
- NEP-GEO-2011-05-07 (Economic Geography)
- NEP-URE-2011-05-07 (Urban & Real Estate Economics)
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