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Agglomeration and trade revisited

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  • OTTAVIANO, Gianmarco

    (Universita degli Studi di Bologna, CORE, Université catholique de Louvain, and CEPR)

  • THISSE, Jacques-François

    (Center for Operations Research and Econometrics (CORE), Université catholique de Louvain (UCL), Louvain la Neuve, Belgium, CERAS, Ecole nationale des ponts et chaussées, and CEPR)

Abstract

The purpose of this paper is twofold. First, we present an alternative model of agglomeration and trade that displays the main features of the recent economic geography literature while allowing for the derivation of analytical results by means of simple algebra. Second, we show how this framework can be used to adopt a forward-looking approach to the dynamics of migration in the process of agglomeration instead of the myopic Marshallian model used so far in this literature.

Suggested Citation

  • OTTAVIANO, Gianmarco & THISSE, Jacques-François, 1999. "Agglomeration and trade revisited," LIDAM Discussion Papers CORE 1999041, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:1999041
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    References listed on IDEAS

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    More about this item

    Keywords

    agglomeration; trade; self-fulfilling expectations; monopolistic competition;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

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