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The core-periphery model with three regions

Author

Listed:
  • Sofia B. S. D. Castro

    (Faculdade de Economia and Centro de Matematica, Universidade do Porto)

  • Joao Correia-da-Silva

    (CEF.UP and Faculdade de Economia, Universidade do Porto)

  • Pascal Mossay

    (School of Economics, Henley Business School, University of Reading and Departamento de Fundamentos del Analisis Economico, Universidad de Alicante.)

Abstract

We study a 3-region core-periphery model à la Krugman and compare our results with those of the standard 2-region model. The conditions for the stability of the dispersion and concentration configurations are established. Like in the 2-region model, dispersion and concentration can be simultaneously stable. We show that the 2- region (3-region) model favors the dispersion (concentration) of economic activity. Finally, we extend the core-periphery model to the case of n regions and show that stability of concentration with 2 regions implies stability of concentration with any even number of regions.

Suggested Citation

  • Sofia B. S. D. Castro & Joao Correia-da-Silva & Pascal Mossay, 2009. "The core-periphery model with three regions," FEP Working Papers 325, Universidade do Porto, Faculdade de Economia do Porto.
    • Handle: RePEc:por:fepwps:325
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    File URL: http://www.fep.up.pt/investigacao/workingpapers/09.06.02_wp325.pdf
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    Cited by:

    1. Barbero, Javier & Zofío, José Luis, 2012. "The multiregional core-periphery model: The role of the spatial topology," Working Papers in Economic Theory 2012/12, Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History).
    2. Kiyohiro Ikeda & Mikihisa Onda & Yuki Takayama, 2019. "Bifurcation Theory of a Racetrack Economy in a Spatial Economy Model," Networks and Spatial Economics, Springer, vol. 19(1), pages 57-82, March.

    More about this item

    Keywords

    new economic geography; core-periphery;

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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