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Agglomeration triggered by the effect of the number of regions: A model in NEG with a quadratic subutility

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  • Kensuke Ohtake

Abstract

We extend the mathematical model proposed by Ottaviano-Tabuchi-Thisse (2002) to a multi-regional case and investigate the stability of the homogeneous stationary solution of the model in a one-dimensional periodic space. When the number of regions is two and three, the homogeneous stationary solution is stable under sufficiently high transport cost. On the other hand, when the number of regions is a multiple of four, the homogeneous stationary solution is unstable under any values of the transport cost.

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  • Kensuke Ohtake, 2021. "Agglomeration triggered by the effect of the number of regions: A model in NEG with a quadratic subutility," Papers 2112.02920, arXiv.org, revised Mar 2022.
    • Handle: RePEc:arx:papers:2112.02920
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    1. Gianmarco Ottaviano & Takatoshi Tabuchi & Jacques-François Thisse, 2021. "Agglomeration And Trade Revisited," World Scientific Book Chapters, in: Firms and Workers in a Globalized World Larger Markets, Tougher Competition, chapter 3, pages 59-85, World Scientific Publishing Co. Pte. Ltd..
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