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On the sustainability of a monocentric city : lower transport costs from new transport facilities

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  • Gokan, Toshitaka

Abstract

This paper proposes a general equilibrium model of a monocentric city based on Fujita and Krugman (1995). Two rates of transport costs per distance and for the same good are introduced. The model assumes that lower transport costs are available at a few points on a line. These lower costs represent new transport facilities, such as high-speed motorways and railways. Findings is that new transport facilities connecting the city and hinterlands strengthen the lock-in effects, which describes whether a city remains where it is forever after being created. Furthermore, the effect intensifies with better agricultural technologies and a larger population in the economy. The relationship between indirect utility and population size has an inverted U-shape, even if new transport facilities are used. However, the population size that maximizes indirect utility is smaller than that found in Fujita and Krugman (1995).

Suggested Citation

  • Gokan, Toshitaka, 2016. "On the sustainability of a monocentric city : lower transport costs from new transport facilities," IDE Discussion Papers 548, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper548
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    References listed on IDEAS

    as
    1. Mori, Tomoya, 1997. "A Modeling of Megalopolis Formation: The Maturing of City Systems," Journal of Urban Economics, Elsevier, vol. 42(1), pages 133-157, July.
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    Cited by:

    1. Akifumi Kuchiki, 2022. "Linking spatial economics and sequencing economics for the Osaka tourism agglomeration," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(3), pages 610-626, June.

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    More about this item

    Keywords

    Econometric model; Transportation; Urban societies; Urban system; Monopolistic competition; Transport facilities;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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