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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. On propose une approche en termes de réseaux spatiaux pour étudier les configurations urbaines en modélisant explicitement la transmission, l’agrégation et les débordements de l’information via les liens formés, et en permettant aux rôles de la population et de la localité (cœur versus périphérie) dans chaque localisation d’être déterminés de façon endogène en équilibre. On établit les conditions d’émergence de la configuration monocentrique communément assumée en tant que résultat d’équilibre unique et efficient. On montre aussi dans quelles circonstances un équilibre spatial peut être multicentrique, urbain‐rural, ou composé d’aires urbaines multiples déconnectées, et dans quelles conditions chaque configuration est socialement efficiente. On aide à préciser les caractéristiques de l’équilibre spatial en faisant certains exercices de statique comparative.

Suggested Citation

  • Fan‐chin Kung & Ping Wang, 2012. "A spatial network approach to urban configurations," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 45(1), pages 314-344, February.
    • Handle: RePEc:wly:canjec: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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