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A spatial network approach to urban configurations

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  • Fan-chin Kung
  • Ping Wang

Abstract

We propose a spatial network approach to studying urban configurations by modelling explicitly knowledge transmission, aggregation and spillovers via links formed, as well as by allowing the population and the locality role (`core' versus `periphery') in each location to be endogenously determined in equilibrium. We establish conditions for the commonly assumed monocentric configuration to arise as the unique and efficient equilibrium outcome. We also illustrate under what circumstances a spatial equilibrium may feature multicentric, urban-rural, or multiple (disconnected) urban areas and under what conditions each configuration is socially efficient. We further characterize the spatial equilibrium by performing various comparative statics.

Suggested Citation

  • Fan-chin Kung & Ping Wang, 2012. "A spatial network approach to urban configurations," Canadian Journal of Economics, Canadian Economics Association, vol. 45(1), pages 314-344, February.
    • Handle: RePEc:cje:issued:v:45:y:2012:i:1:p:314-344
    DOI: 10.1111/j.1540-5982.2011.01697.x
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    Cited by:

    1. Dimitrios Xefteris & Nicholas Ziros, 2014. "A Spatial Model of Perfect Competition," University of Cyprus Working Papers in Economics 05-2014, University of Cyprus Department of Economics.

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    More about this item

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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