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articles: Multiple equilibria, stability, and asymmetries in Krugman's core-periphery model

Author

Listed:
  • Luis Fernando Lanaspa

    () (Faculty of Economics and Business Studies, University of Zaragoza, Doctor Cerrada 3, 50005 Zaragoza, Spain)

  • Fernando Sanz

    () (Faculty of Economics and Business Studies, University of Zaragoza, Doctor Cerrada 3, 50005 Zaragoza, Spain)

Abstract

Paul Krugman developed a general equilibrium model with two sectors and two regions in 1991, from which two patterns of industrial localization could be endogenously deduced, dispersion at 50% and total concentration. The introduction of transport costs, which depend on the size of the population, are meant to capture effects produced by the trade-off between congestion costs and advantages derived from the possession of infrastructure, thus generates stable asymmetric multiple equilibria. The outcome of asymmetric stable multiple equilibria demonstrates the fruitfulness of this extension of the original model.

Suggested Citation

  • 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.
  • Handle: RePEc:spr:presci:v:80:y:2001:i:4:p:425-438
    Note: Received: 23 June 1998
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    Citations

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    Cited by:

    1. Ugo Fratesi, 2008. "Regional policy from a supra-regional perspective," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 42(3), pages 681-703, September.
    2. Kristian Behrens & Frédéric Robert-Nicoud, 2009. "Krugman's "Papers in Regional Science": The 100 dollar bill on the sidewalk is gone and the 2008 Nobel Prize well-deserved," Papers in Regional Science, Wiley Blackwell, vol. 88(2), pages 467-489, June.
    3. Corey Lang, 2010. "Heterogeneous transport costs and spatial sorting in a model of New Economic Geography," Papers in Regional Science, Wiley Blackwell, vol. 89(1), pages 191-202, March.
    4. Malul, Miki & Bar-El, Raphael, 2009. "Core-Periphery Market Failure in the Location of Economic Activity," The Review of Regional Studies, Southern Regional Science Association, vol. 39(1), pages 85-98.
    5. Canfei He & Xiyan Mao, 2016. "Population dynamics and regional development in China," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 9(3), pages 535-549.

    More about this item

    Keywords

    Industrial concentration; infrastructures; stable asymmetries;

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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