Natural agglomeration

This paper considers the racetrack economic approach, where manufacturing activities are distributed continuously. We seek constant-access equilibria and show that smooth equilibrium distributions are always unstable for almost all transport cost functions, whereas agglomeration in 1 or 2 atomic cities is stable for any economic parameters given regular transport costs, such as linear transport costs.

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Year of publication:	2003-12
Authors:	PICARD, Pierre ; TABUCHI, Takatoshi
Institutions:	Center for Operations Research and Econometrics (CORE), École des Sciences Économiques de Louvain
Subject:	agglomeration \| continuous distribution \| asymptotic stability \| Fourier series

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Extent:	application/pdf
Series:	CORE Discussion Papers.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series UNIVERSITE CATHOLIQUE DE LOUVAIN, Center for Operations Research and Econometrics (CORE) Number 2003101
Classification:	C62 - Existence and Stability Conditions of Equilibrium ; F12 - Models of Trade with Imperfect Competition and Scale Economies ; R12 - Size and Spatial Distributions of Regional Economic Activity
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005042784