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Cities in Space: Three Simple Models


  • Paul Krugman


Urban agglomerations arise at least in part out of the interaction between economies of scale in production and market size effects. This paper develops a simple spatial framework to develop illustrative models of the determinants of urban location, of the number and size of cities, and of the degree of urbanization. A Central theme is the probable existence of multiple equilibria, and the dependence of the range of potential outcomes on a few key parameters.

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  • Paul Krugman, 1991. "Cities in Space: Three Simple Models," NBER Working Papers 3607, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:3607
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    References listed on IDEAS

    1. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    2. Henderson, J. Vernon, 1991. "Urban Development: Theory, Fact, and Illusion," OUP Catalogue, Oxford University Press, number 9780195069020.
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    Cited by:

    1. Klodt, Henning & Paqué, Karl-Heinz, 1993. "Am Tiefpunkt der Transformationskrise: Industrie- und lohnpolitische Weichenstellungen in den jungen Bundesländern," Kiel Discussion Papers 213, Kiel Institute for the World Economy (IfW).
    2. Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992. "Growth in Cities," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1126-1152, December.
      • Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
      • Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
    3. García, Jorge H. & Garmestani, Ahjond S. & Karunanithi, Arunprakash T., 2011. "Threshold transitions in a regional urban system," Journal of Economic Behavior & Organization, Elsevier, vol. 78(1), pages 152-159.
    4. Oana Mionel & Viorel Mionel & Cristina Mihaescu, 2014. "The Role of Urban Financial Centers within the Economy of Global Cities," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 10(3), pages 155-168, June.
    5. Gurrieri, Antonia Rosa, 2013. "Networking entrepreneurs," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 47(C), pages 193-204.

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