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Continuous space core-periphery model with transport costs in differentiated agriculture

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  • Kensuke Ohtake

    (Shinshu University)

Abstract

The core-periphery model with transport costs in differentiated agriculture is extended to continuous space. A homogeneous stationary solution is unstable but exhibits re-multi-polarization; it is stabilized by both sufficiently low and sufficiently high manufacturing transport costs but destabilized by intermediate manufacturing transport costs. It is numerically observed that a solution starting from around the unstable homogeneous solution eventually forms a spike-like agglomeration. Moreover, the re-multi-polarization also appears in the sense that the number of spikes goes from decreasing to increasing as the manufacturing transport costs decrease. It is also observed that lower agricultural transport costs and a stronger preference for agricultural variety promote agglomeration.

Suggested Citation

  • Kensuke Ohtake, 2025. "Continuous space core-periphery model with transport costs in differentiated agriculture," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 24(3), pages 469-502, September.
    • Handle: RePEc:spr:portec:v:24:y:2025:i:3:d:10.1007_s10258-025-00273-0
    DOI: 10.1007/s10258-025-00273-0
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    JEL classification:

    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models

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