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Self-organizing Urban Hierarchy


  • Takatoshi Tabuchi

    (Faculty of Economics, University of Tokyo)

  • Jacques-Francois Thisse

    (Center for operations research and econometrics (CORE), Universite catholique de Louvain)


We have considered a general equilibrium model with monopolistically competitive markets, in which urban centers are service suppliers to all the agricultural regions as well as to the other urban centers. We have retained the forward and backward linkages of NEG to generate the agglomeration of firms and workers in cities. Our main result is that central places arise endogenously when transport costs take intermediate values.

Suggested Citation

  • Takatoshi Tabuchi & Jacques-Francois Thisse, 2006. "Self-organizing Urban Hierarchy," CIRJE F-Series CIRJE-F-414, CIRJE, Faculty of Economics, University of Tokyo.
  • Handle: RePEc:tky:fseres:2006cf414

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    References listed on IDEAS

    1. Henderson, J V, 1974. "The Sizes and Types of Cities," American Economic Review, American Economic Association, vol. 64(4), pages 640-656, September.
    2. Gianmarco Ottaviano & Takatoshi Tabuchi & Jacques-FranÁois Thisse, 2002. "Agglomeration and Trade Revisited," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 43(2), pages 409-436, May.
    3. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    4. Krugman, Paul, 1993. "On the number and location of cities," European Economic Review, Elsevier, vol. 37(2-3), pages 293-298, April.
    5. Fujita, Masahisa & Krugman, Paul & Mori, Tomoya, 1999. "On the evolution of hierarchical urban systems1," European Economic Review, Elsevier, vol. 43(2), pages 209-251, February.
    6. Eaton, B Curtis & Lipsey, Richard G, 1982. "An Economic Theory of Central Places," Economic Journal, Royal Economic Society, vol. 92(365), pages 56-72, March.
    7. Martin, Philippe & Rogers, Carol Ann, 1994. "Trade Effects of Regional Aid," CEPR Discussion Papers 910, C.E.P.R. Discussion Papers.
    8. Quinzii, Martine & Thisse, Jacques-Francois, 1990. "On the Optimality of Central Places," Econometrica, Econometric Society, vol. 58(5), pages 1101-1119, September.
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