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Satellite City Formation for a Spatial Economic Model

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  • Hiroki Aizawa

    (Tohoku University)

  • Kiyohiro Ikeda

    (Tohoku University)

  • Yosuke Kogure

    (Tohoku University)

Abstract

The economic agglomeration of one large city surrounded by satellite cities is observed worldwide and is a topic of keen economic interest. We theoretically investigate where such satellite cities emerge in a two-dimensional economic space in which discrete locations are evenly distributed in a regular-hexagonal domain. To elucidate this emergence, we introduce two viewpoints: (1) the bifurcation mechanism of the full agglomeration at the geographical center in this domain (mono-center), which produces satellite cities around this center, and (2) the existence of invariant patterns, which are equilibria for any value of the transport cost parameter. Theoretically-predicted agglomeration patterns are ensured to exist as stable equilibria for a spatial economic model proposed by Forslid and Ottaviano (2003). We theoretically find one large central city surrounded by hexagonal satellite cities that is a two-dimensional counterpart of the core-periphery pattern (Krugman 1991). Moreover, we demonstrate that spatial patterns of twin cities, three cities, and racetrack cities are absorbed into the mono-center as the transport cost decreases. These transitions are ubiquitously observed in the two-dimensional spatial platform with the geographical center.

Suggested Citation

  • Hiroki Aizawa & Kiyohiro Ikeda & Yosuke Kogure, 2023. "Satellite City Formation for a Spatial Economic Model," Networks and Spatial Economics, Springer, vol. 23(3), pages 529-558, September.
    • Handle: RePEc:kap:netspa:v:23:y:2023:i:3:d:10.1007_s11067-023-09586-z
    DOI: 10.1007/s11067-023-09586-z
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    References listed on IDEAS

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    Cited by:

    1. Aizawa, Hiroki & Saka, Takuhiro, 2024. "Disutility caused by remote work in urban system," MPRA Paper 122913, University Library of Munich, Germany.

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