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Krugman's Core-Periphery Model with Heterogeneous Quality of Land

Author

Listed:
  • Luis Fernando Lanaspa

    (Faculty of Economics and Business Studies, University of Zaragoza, Doctor Cerrada 3, 50005 Zaragoza, Spain, llanas@posta.unizar.es)

  • Fernando Sanz

    (Faculty of Economics and Business Studies, University of Zaragoza, Doctor Cerrada 3, 50005 Zaragoza, Spain, fsanz@posta.unizar.es)

Abstract

In 1991, Krugman developed a general equilibrium model with two sectors and two regions, from which two patterns of industrial location could be deduced endogenously, namely symmetric dispersion at 50 per cent and total concentration. In this paper, we present a very simple extension to this original model. The consideration of regions with different agricultural populations, reflecting a different quality of land, allows us to deduce asymmetric distributions of the manufacturing sector. These asymmetric distributions complete and enrich the casuistry derived from the original approach, drawing it closer to the observable world.

Suggested Citation

  • Luis Fernando Lanaspa & Fernando Sanz, 1999. "Krugman's Core-Periphery Model with Heterogeneous Quality of Land," Urban Studies, Urban Studies Journal Limited, vol. 36(3), pages 499-507, March.
    • Handle: RePEc:sae:urbstu:v:36:y:1999:i:3:p:499-507
    DOI: 10.1080/0042098993493
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    References listed on IDEAS

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    1. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
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    Cited by:

    1. Raphael BAR-EL & Dafna SCHWARTZ, 2003. "Economic Growth, Inequality And Spatial Demographic Distribution: A Brazilian Case," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 18, pages 147-170.
    2. Olga Alonso-Villar, 2005. "The effects of transport costs within the new economic geography," Working Papers 0502, Universidade de Vigo, Departamento de Economía Aplicada.

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