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An Evolutionary New Economic Geography Model

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  • Wei Fan
  • Frederick Treyz
  • George Treyz

Abstract

In this paper we present a general new economic geography model with multiple industries and regions, full labor and capital mobility, land use in production and consumption, and a dynamic adjustment process in which consumers maximize utility and firms respond to nonzero profits. All industries use intermediate inputs as well as land, labor, and capital. Systems of cities form endogenously within this framework, including asymmetrical urban hierarchies and cities of different sizes and industry compositions. Each urban area has a bid-rent gradient and zones with land uses and densities as in the von Thünen model. The equilibrium depends not only on initial conditions but also on speeds of adjustment. The model is a prototype for empirical implementation, as illustrated with a simulation of the effects of transportation cost reductions. Copyright 2000 Blackwell Publishers

Suggested Citation

  • Wei Fan & Frederick Treyz & George Treyz, 2000. "An Evolutionary New Economic Geography Model," Journal of Regional Science, Wiley Blackwell, vol. 40(4), pages 671-695.
  • Handle: RePEc:bla:jregsc:v:40:y:2000:i:4:p:671-695
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    Cited by:

    1. Bert Hof & Arjan Heyma & Toon Hoorn, 2012. "Comparing the performance of models for wider economic benefits of transport infrastructure: results of a Dutch case study," Transportation, Springer, vol. 39(6), pages 1241-1258, November.
    2. Felici, F. & Paniccia, R. & Rocchi, Benedetto, 2008. "Economic Impact of Rural Development Plan 2007 2013 in Tuscany," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44256, European Association of Agricultural Economists.
    3. Ryusuke Ihara, 2011. "Weber problem in the NEG: a case study of Asia," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 47(1), pages 37-50, August.
    4. Giuseppe Francesco Gori & Renato Paniccià, 2015. "A structural multisectoral model with new economic geography linkages for Tuscany," Papers in Regional Science, Wiley Blackwell, vol. 94, pages 175-196, November.
    5. Ho Yeon KIM & Petra de Jong & Jan Rouwendal & Aleid Brouwer, 2012. "Shrinking population and the urban hierarchy
      [Housing preferences and attribute importance among Dutch older adults: a conjoint choice experiment]
      ," ERSA conference papers ersa12p350, European Regional Science Association.
    6. Konstantina Gkritza & Kumares Sinha & Samuel Labi & Fred Mannering, 2008. "Influence of highway construction projects on economic development: an empirical assessment," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 42(3), pages 545-563, September.
    7. Michael Roos, 2003. "Internationale Integration und die Neue Ökonomische Geographie," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 4(1), pages 107-121, February.
    8. Kim, Ho Yeon, 2012. "Shrinking population and the urban hierarchy," IDE Discussion Papers 360, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    9. repec:esr:resser:rs70 is not listed on IDEAS
    10. Timothy J. Bartik & George A. Erickcek, 2012. "Simulating the Effects of Michigan's MEGA Tax Credit Program on Job Creation and Fiscal Benefits," Upjohn Working Papers and Journal Articles 12-185, W.E. Upjohn Institute for Employment Research.
    11. Marcin Bogdanski, 2012. "Modern Theories Of Regional Development – A Review Of Some Concepts," Oeconomia Copernicana, Institute of Economic Research, vol. 3(2), pages 25-41, June.
    12. Timothy J. Bartik & George Erickcek, 2014. "Simulating the Effects of the Tax Credit Program of the Michigan Economic Growth Authority on Job Creation and Fiscal Benefits," Economic Development Quarterly, , vol. 28(4), pages 314-327, November.
    13. John Bradley & Gerhard Untiedt & Edgar Morgenroth, 2003. "Macro-regional evaluation of the structural funds using the Hermin modelling framework," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2003(3).
    14. Bröcker, Johannes & Korzhenevych, Artem, 2013. "Forward looking dynamics in spatial CGE modelling," Economic Modelling, Elsevier, vol. 31(C), pages 389-400.
    15. van Exel, Job & Rienstra, Sytze & Gommers, Michael & Pearman, Alan & Tsamboulas, Dimitrios, 2002. "EU involvement in TEN development: network effects and European value added," Transport Policy, Elsevier, vol. 9(4), pages 299-311, October.
    16. George Backus & Thomas Lowry & Drake Warren, 2013. "The near-term risk of climate uncertainty among the U.S. states," Climatic Change, Springer, vol. 116(3), pages 495-522, February.
    17. Kurt Geppert & Dieter Vesper, 2006. "Einnahmen- und Ausgabeneffekte der Hauptstadtfunktion für Berlin: Endbericht ; Forschungsprojekt im Auftrag der Senatsverwaltung für Finanzen, Berlin," DIW Berlin: Politikberatung kompakt, DIW Berlin, German Institute for Economic Research, volume 14, number pbk14, December.
    18. Theodore Tsekeris & Klimis Vogiatzoglou & Stelios Bekiros, 2011. "Multi-Regional Agent-Based Modeling of Household and Firm Location Choices with Endogenous Transport Costs," ERSA conference papers ersa10p479, European Regional Science Association.
    19. Moretti, Luigi, 2004. "I modelli macroeconomici per la valutazione dell'impatto dei Fondi strutturali nelle economie a Obiettivo 1
      [Macroeconomic Models Used for the Impact Evaluation of the Structural Funds in Objective
      ," MPRA Paper 18868, University Library of Munich, Germany.
    20. Bondonio, Daniele, 2007. "The Employment Impact of Business Incentive Policies: a Comparative Evaluation of Different Forms of Assistance," POLIS Working Papers 92, Institute of Public Policy and Public Choice - POLIS.
    21. Theodore Tsekeris & Klimis Vogiatzoglou, 2011. "Spatial agent-based modeling of household and firm location with endogenous transport costs," Netnomics, Springer, vol. 12(2), pages 77-98, July.

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