Lanaspa, Luis Fernando; Sanz, Fernando - In: Papers in Regional Science 80 (2001) 4, pp. 425-438
Paul Krugman developed a general equilibrium model with two sectors and two regions in 1991, from which two patterns of industrial localization could be endogenously deduced, dispersion at 50% and total concentration. The introduction of transport costs, which depend on the size of the...