IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this article

Core-Periphery Market Failure in the Location of Economic Activity

  • Malul, Miki

    (Ben-Gurion U Negev)

  • Bar-El, Raphael

    (Ben-Gurion U Negev)

Using a simplified theoretical model, we illustrate the potential existence of a market failure in the location of economic activity, which could lead to an exaggerated concentration in the core region. Based on this, we analyze whether a public policy intervention of decreasing the mobility costs of production factors could lead to the elimination of, or at least a decrease in, the consequences of a market failure. We show that the market failure can be eliminated only when the reduction in mobility costs is made concurrently with changing exogenous conditions in the peripheral regions (such as improvements in infrastructure).

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://journal.srsa.org/ojs/index.php/RRS/article/view/186/141
Download Restriction: no

Article provided by Southern Regional Science Association in its journal Review of Regional Studies.

Volume (Year): 39 (2009)
Issue (Month): 1 ()
Pages: 85-98

as
in new window

Handle: RePEc:rre:publsh:v:39:y:2009:i:1:p:85-98
Contact details of provider: Web page: http://www.srsa.org

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.:

as in new window
  1. Euijune Kim & Euijune Kim & Sung Woong Hong & Soo Jung Ha, 2003. "Impacts of national development and decentralization policies on regional income disparity in Korea," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 37(1), pages 79-91, 02.
  2. Helsley, Robert W. & Strange, William C., 1990. "Matching and agglomeration economies in a system of cities," Regional Science and Urban Economics, Elsevier, vol. 20(2), pages 189-212, September.
  3. Nakamura, Ryohei, 1985. "Agglomeration economies in urban manufacturing industries: A case of Japanese cities," Journal of Urban Economics, Elsevier, vol. 17(1), pages 108-124, January.
  4. Mitra, Arup, 1999. "Agglomeration Economies as Manifested in Technical Efficiency at the Firm Level," Journal of Urban Economics, Elsevier, vol. 45(3), pages 490-500, May.
  5. Donald R. Davis & David E. Weinstein, 1998. "Economic geography and regional production structure: an empirical investigation," Staff Reports 40, Federal Reserve Bank of New York.
  6. Abdel-Rahman Hesham M. & Fujita Masahisa, 1993. "Specialization and Diversification in a System of Cities," Journal of Urban Economics, Elsevier, vol. 33(2), pages 189-222, March.
  7. Paul Krugman, 1990. "Increasing Returns and Economic Geography," NBER Working Papers 3275, National Bureau of Economic Research, Inc.
  8. Erik T. Verhoef, 2000. "articles: The implementation of marginal external cost pricing in road transport Long run vs short run and first-best vs second-best," Papers in Regional Science, Springer;Regional Science Association International, vol. 79(3), pages 307-332.
  9. Antonio Ciccone & Robert E. Hall, 1995. "Productivity and the density of economic activity," Economics Working Papers 120, Department of Economics and Business, Universitat Pompeu Fabra.
  10. Klaus Conrad, 1997. "Traffic, transportation, infrastructure and externalities A theoretical framework for a CGE analysis," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 31(4), pages 369-389.
  11. Robert E. Hall & Charles I. Jones, 1996. "The Productivity of Nations," NBER Working Papers 5812, National Bureau of Economic Research, Inc.
  12. Philip McCann, 2005. "Transport costs and new economic geography," Journal of Economic Geography, Oxford University Press, vol. 5(3), pages 305-318, June.
  13. Hadar, Yossi & Pines, David, 2004. "Population growth and its distribution between cities: positive and normative aspects," Regional Science and Urban Economics, Elsevier, vol. 34(2), pages 125-154, March.
  14. Ottaviano, Gianmarco & Robert-Nicoud, Frédéric, 2004. "The 'Genome' of NEG Models with Vertical Linkages: A Positive and Normative Synthesis," CEPR Discussion Papers 4600, C.E.P.R. Discussion Papers.
  15. Raphael Bar-El, 2006. "Inter-regional labor market equilibrium: another pattern of spatial mismatch," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 40(2), pages 393-405, June.
  16. Takatoshi Tabuchi & Jacques-François Thisse, 2006. "Regional Specialization, Urban Hierarchy, And Commuting Costs," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 47(4), pages 1295-1317, November.
  17. repec:adr:anecst:y:1996:i:41-42 is not listed on IDEAS
  18. Luis Fernando Lanaspa & Fernando Sanz, 2001. "articles: Multiple equilibria, stability, and asymmetries in Krugman's core-periphery model," Papers in Regional Science, Springer;Regional Science Association International, vol. 80(4), pages 425-438.
  19. Cropper, Maureen L & Aydede, Sema K & Portney, Paul R, 1992. "Rates of Time Preference for Saving Lives," American Economic Review, American Economic Association, vol. 82(2), pages 469-72, May.
  20. Hu, Dapeng, 2002. "Trade, rural-urban migration, and regional income disparity in developing countries: a spatial general equilibrium model inspired by the case of China," Regional Science and Urban Economics, Elsevier, vol. 32(3), pages 311-338, May.
  21. Miki Malul & Raphael Bar-El, 2009. "The Gap between Free Market and Social Optimum in the Location Decision of Economic Activity," Urban Studies, Urban Studies Journal Limited, vol. 46(10), pages 2045-2059, September.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:rre:publsh:v:39:y:2009:i:1:p:85-98. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark L. Burkey)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.