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A Dynamic Spatial Model

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Author Info
Paul Krugman

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Abstract

Any interesting model of economic geography must involve a tension between "centripetal" forces that tend to produce agglomerations and "centrifugal" forces that tend to pull them apart. This paper explores one such model, and shows that the model links together a number of themes in the geography literature. These include: the role of market access, as measured by a measure of "market potential", in determining manufacturing location; the role of forward and backward linkages in producing agglomerations; the potential for "catastrophes", i.e., discontinuous changes in location in response to small changes in exogenous variables: and the idea that the economy is a "self-organizing system" that evolves a self-sustaining locational structure.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 4219.

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Date of creation: Nov 1992
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Handle: RePEc:nbr:nberwo:4219

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References listed on IDEAS
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  1. Fujita, Masahisa, 1988. "A monopolistic competition model of spatial agglomeration : Differentiated product approach," Regional Science and Urban Economics, Elsevier, vol. 18(1), pages 87-124, February. [Downloadable!] (restricted)
  2. Dixon, R & Thirlwall, A P, 1975. "A Model of Regional Growth-Rate Differences on Kaldorian Lines," Oxford Economic Papers, Oxford University Press, vol. 27(2), pages 201-14, July. [Downloadable!] (restricted)
  3. Olivier Jean Blanchard & Lawrence F. Katz, 1992. "Regional Evolutions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(1992-1), pages 1-76. [Downloadable!]
  4. Arthur, W. Brian, 1990. "'Silicon Valley' locational clusters: when do increasing returns imply monopoly?," Mathematical Social Sciences, Elsevier, vol. 19(3), pages 235-251, June. [Downloadable!] (restricted)
  5. Paul R. Krugman, 1991. "First Nature, Second Nature, and Metropolitan Location," NBER Working Papers 3740, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June. [Downloadable!] (restricted)
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  7. Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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    • Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992. "Growth in Cities," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1126-52, December. [Downloadable!] (restricted)
  8. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-99, June. [Downloadable!] (restricted)
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  9. Barro, R.J. & Sala-I-Martin, X., 1991. "Convergence Across States and Regions," Papers 629, Yale - Economic Growth Center.
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(explanations, 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. Hisarciklilar, Mehtap & Kayam, Saime Suna & Kayalica, Ozgur, 2006. "Locational Drivers of FDI in MENA Countries: A Spatial Attempt," MPRA Paper 2085, University Library of Munich, Germany. [Downloadable!]
  2. Y Ioannides & Henry Overman, 2000. "Spatial Evolution of the US Urban System," CEP Discussion Papers dp0482, Centre for Economic Performance, LSE. [Downloadable!]
    Other versions:
  3. Piteli, Eleni E.N., 2009. "Foreign Direct Investment in Developed Economies: A Comparison between European and non - European Countries," Papers DYNREG44, Economic and Social Research Institute (ESRI). [Downloadable!]
  4. Niebuhr, Annekatrin, 2004. "Market Access and Regional Disparities: New Economic Geography in Europe," Discussion Paper Series 26148, Hamburg Institute of International Economics. [Downloadable!]
  5. Helene Erkel-Rousse & Daniel Mirza, 2000. "Import Price-Elastcities: Reconsidering the Evidence," Econometric Society World Congress 2000 Contributed Papers 0909, Econometric Society. [Downloadable!]
    Other versions:
  6. Rosa Sanchis-Guarner & Enrique Lopez-Bazo, 2006. "Are Skilled Workers More Attracted to Economic Agglomerations?," ERSA conference papers ersa06p120, European Regional Science Association. [Downloadable!]
  7. Mion, Giordano, 2003. "Spatial Externalities and Empirical Analysis: The Case of Italy," ZEW Discussion Papers 03-38, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
    Other versions:
  8. Olga Alonso-Villar, 2001. "Metropolitan areas and public infrastructure," Investigaciones Economicas, Fundación SEPI, vol. 25(1), pages 139-169, January. [Downloadable!]
  9. Gordon H. Hanson, 1998. "Market Potential, Increasing Returns, and Geographic Concentration," NBER Working Papers 6429, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  10. Strauss-Kahn, Vanessa & Vives, Xavier, 2006. "Why and where do headquarters move?," IESE Research Papers D/650, IESE Business School.
    Other versions:
  11. Natalia Zugravu & Sonia Ben Kheder, 2008. "The Pollution Haven Hypothesis: A Geographic Economy Model in a Comparative Study," Working Papers 2008.73, Fondazione Eni Enrico Mattei. [Downloadable!]
    Other versions:
  12. Roberto Basile & Davide Castellani, 2003. "Location Choices of Multinational Firms in Europe: the Role of National Bourdaries and EU Policy," Development Working Papers 183, Centro Studi Luca d\'Agliano, University of Milano. [Downloadable!]
    Other versions:
  13. Gianmarco Ottaviano, 1995. "A Geographic Approach to International Economics: 'Strategic Trade Policy'?" -," Working Papers 216, Dipartimento Scienze Economiche, Universita' di Bologna. [Downloadable!]
  14. MION, Giordano, 2003. "Spatial externalities and empirical analysis: the case of Italy," CORE Discussion Papers 2003015, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE). [Downloadable!]
  15. Black, Duncan, 1999. "Local Knowledge Spillovers and Inequality," ERSA conference papers ersa99pa409, European Regional Science Association. [Downloadable!]
  16. Monnesland, Jan & Westlund, Hans, 1999. "Cross border Co-operation in low population density Areas," ERSA conference papers ersa99pa392, European Regional Science Association. [Downloadable!]
  17. Head, Charles Keith & Mayer, Thierry, 2002. "Market Potential and the Location of Japanese Investment in the European Union," CEPR Discussion Papers 3455, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  18. Jordi Galí, 1994. "Expectations-Driven Spatial Fluctuations," Economics Working Papers 60, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
    Other versions:
  19. Olga Alonso Villar, . "El analisis economico de los procesos de urbanizacion," Documentos de trabajo - Análise Económica 0004, IDEGA - Instituto Universitario de Estudios e Desenvolvemento de Galicia. [Downloadable!]
  20. Roberto Ezcurra & Pedro Pascual & Manuel Rapún, 2006. "Regional mobility in the European Union," Applied Economics, Taylor and Francis Journals, vol. 38(19), pages 2237-2253, October. [Downloadable!] (restricted)
  21. Philippe Michel & Anne Perrot & Jacques-François Thisse, 1996. "Interregional equilibrium with heterogeneous labor," Journal of Population Economics, Springer, vol. 9(1), pages 95-113, February. [Downloadable!] (restricted)
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