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The multiregional core-periphery model: The role of the spatial topology

Author

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  • Barbero, Javier

    () (Departamento de Análisis Económico (Teoría e Historia Económica). Universidad Autónoma de Madrid.)

  • Zofío, José Luis

    () (Departamento de Análisis Económico (Teoría e Historia Económica). Universidad Autónoma de Madrid.)

Abstract

We use the multiregional core-periphery model of the new economic geography to analyze and compare the agglomeration and dispersion forces shaping the location of economic activity for a continuum of network topologies characterized by their degree of centrality, and comprised between two extremes represented by the homogenous (ring) and the heterogeneous (star) configurations. Resorting to graph theory, we systematically extend the analytical tools and graphical representations of the core-periphery model for alternative spatial configuration, and study the stability of the alternative equilibria in terms of the sustain and break points. We study new phenomena such as the absence of any stable distribution of economic activity for some range of transport costs, and the infeasibility of the dispersed equilibrium in the heterogeneous space, resulting in the introduction of the concept pseudo flat-earth as a long run-equilibrium corresponding to an uneven distribution of economic activity between regions.

Suggested Citation

  • Barbero, Javier & Zofío, José Luis, 2012. "The multiregional core-periphery model: The role of the spatial topology," Working Papers in Economic Theory 2012/12, Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History).
  • Handle: RePEc:uam:wpaper:201212
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    References listed on IDEAS

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    1. repec:kap:netspa:v:17:y:2017:i:1:d:10.1007_s11067-016-9325-y is not listed on IDEAS
    2. Gude, Alberto & Álvarez, Inmaculada C. & Orea, Luis, 2017. "Heterogeneous spillovers among Spanish provinces: A generalized spatial stochastic frontier model," Efficiency Series Papers 2017/03, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    3. Sidorov, A., 2013. "Stability of Totally Agglomerated Equilibrium in a Multiregional Core-Periphery Model," Journal of the New Economic Association, New Economic Association, vol. 17(1), pages 44-62.
    4. repec:kap:jproda:v:50:y:2018:i:3:d:10.1007_s11123-018-0540-z is not listed on IDEAS
    5. repec:kap:netspa:v:18:y:2018:i:1:d:10.1007_s11067-018-9394-1 is not listed on IDEAS
    6. Álvarez, Inmaculada & Barbero, Javier, 2013. "Knowledge Spillovers in Neoclassical Growth Model: an extension with Public Sector," Working Papers in Economic Theory 2013/07, Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History).
    7. Barbero, Javier & Behrens, Kristian & Zofío, José L., 2018. "Industry location and wages: The role of market size and accessibility in trading networks," Regional Science and Urban Economics, Elsevier, vol. 71(C), pages 1-24.
    8. José M. Gaspar & Sofia B.S.D. Castro & João Correia-da-Silva, 2017. "Agglomeration patterns in a multi-regional economy without income effects," FEP Working Papers 591, Universidade do Porto, Faculdade de Economia do Porto.
    9. José M. Gaspar, 2018. "A prospective review on New Economic Geography," FEP Working Papers 605, Universidade do Porto, Faculdade de Economia do Porto.

    More about this item

    Keywords

    New economic geography; graph theory; degree of centrality; bifurcation; equilibria and stability analysis.;

    JEL classification:

    • 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
    • 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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