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Agglomerations in a multi-region economy: Poly-centric versus mono-centric patterns

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  • Takashi Akamatsu

    () (Graduate School of Information Sciences, Tohoku University)

  • Tomoya Mori

    () (Institute of Economic Research, Kyoto University)

  • Yuki Takayama

    () (Graduate School of Engineering, Tohoku University)

Abstract

Agglomeration externalities have been recognized as major sources of lumpy spatial distributions of industries and population. While the abstraction of interregional space has been a common exercise, recent increasing availability of disaggregated geographical data and more sophisticated computational techniques have promoted counterfactual analyses based on many-region models of agglomeration externalities with explicit interregional space (e.g., Redding and Sturm, 2008; Allen and Arkolakis, 2014). A caveat is that incorporating interregional space to a many-region model with agglomeration externalities does not by itself warrant the formation of polycentric agglomerations in stable equilibria—a crucial property in order to replicate the observed geography of agglomerations. We elaborate this point by comparing a pair of new economic geography models, Forslid and Ottaviano (2003) and Helpman (1998). In a two-region economy, these models exhibit both “agglomeration” (i.e., a relative concentration of mobile agents in one of the regions) and “dispersion” (i.e., a uniform distribution of mobile agents across the two regions). But, if the location space were more disaggregated, only the former admits poly-centric agglomerations in stable equilibria, while in the latter, only a mono-centric agglomeration can occur if any.

Suggested Citation

  • Takashi Akamatsu & Tomoya Mori & Yuki Takayama, 2015. "Agglomerations in a multi-region economy: Poly-centric versus mono-centric patterns," KIER Working Papers 929, Kyoto University, Institute of Economic Research.
  • Handle: RePEc:kyo:wpaper:929
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    References listed on IDEAS

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    Cited by:

    1. Tomoya Mori, 2017. "Agglomeration," KIER Working Papers 960, Kyoto University, Institute of Economic Research.
    2. Akamatsu, Takashi & Osawa, Minoru & Takayama, Yuki, 2015. "Harris and Wilson (1978) Model Revisited: The Spatial Period-doubling Cascade in an Urban Retail Model," MPRA Paper 67974, University Library of Munich, Germany.
    3. Marcus Berliant & Tomoya Mori, 2017. "Beyond urban form: How Masahisa Fujita shapes us," International Journal of Economic Theory, The International Society for Economic Theory, vol. 13(1), pages 5-28, March.

    More about this item

    Keywords

    new economic geography model; many-region model; multiple agglomerations; stability; bifurcation;

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • F15 - International Economics - - Trade - - - Economic Integration
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium

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