On Pitchforks and Tomahawks

The core-periphery model by Krugman (1991) has two 'dramatic' implications: catastrophic agglomeration and locational hysteresis. We study this seminal model with CES instead of Cobb-Douglas upper tier preferences. This small generalization suffices to change these stark implications. For a wide range of parameters we find that the model exhibits instead a smooth and easily reversible transition from symmetry to agglomeration

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Year of publication:	[2021]
Authors:	Pflüger, Michael ; Südekum, Jens
Publisher:	[S.l.] : SSRN
Subject:	Neue ökonomische Geographie \| New economic geography \| Agglomerationseffekt \| Agglomeration effect \| Präferenztheorie \| Theory of preferences \| Zentrum-Peripherie-Beziehungen \| Centre-periphery relations \| Substitutionselastizität \| Elasticity of substitution \| Nichtlineare Dynamik \| Nonlinear dynamics

Extent:	1 Online-Ressource (18 p)
Series:	IZA Discussion Paper ; No. 3258
Type of publication:	Book / Working Paper
Language:	English
Other identifiers:	10.2139/ssrn.1294510 [DOI]
Classification:	F12 - Models of Trade with Imperfect Competition and Scale Economies ; F15 - Economic Integration ; F22 - International Migration ; R12 - Size and Spatial Distributions of Regional Economic Activity ; R50 - Regional Government Analysis. General
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10013324862