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Optimal City Hierarchy: A Dynamic Programming Approach to Central Place Theory

Author

Listed:
  • Wen-Tai Hsu

    (Chinese University of Hong Kong)

  • Thomas J. Holmes

    (University of Minnesota)

Abstract

It is an empirically plausible description of cities and is route to explain empirical regularities in city size distribution and industrial locations. This paper formalizes central place hierarchy by providing a rationale for it via a social planner's problem. The optimal city hierarchy is then compared with the equilibrium city hierarchy in Hsu (2008).

Suggested Citation

  • Wen-Tai Hsu & Thomas J. Holmes, 2009. "Optimal City Hierarchy: A Dynamic Programming Approach to Central Place Theory," 2009 Meeting Papers 342, Society for Economic Dynamics.
    • Handle: RePEc:red:sed009:342
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    References listed on IDEAS

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    9. Xavier Gabaix, 1999. "Zipf's Law for Cities: An Explanation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(3), pages 739-767.
    10. Tomoya Mori & Koji Nishikimi & Tony E. Smith, 2008. "The Number‐Average Size Rule: A New Empirical Relationship Between Industrial Location And City Size," Journal of Regional Science, Wiley Blackwell, vol. 48(1), pages 165-211, February.
    11. Holmes, Thomas J. & Stevens, John J., 2004. "Spatial distribution of economic activities in North America," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 63, pages 2797-2843, Elsevier.
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    13. Quinzii, Martine & Thisse, Jacques-Francois, 1990. "On the Optimality of Central Places," Econometrica, Econometric Society, vol. 58(5), pages 1101-1119, September.
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    Cited by:

    1. Derek Doran & Andrew Fox, 2016. "Operationalizing Central Place and Central Flow Theory With Mobile Phone Data," Annals of Data Science, Springer, vol. 3(1), pages 1-24, March.
    2. Tabuchi, Takatoshi, 2009. "Self-organizing marketplaces," Journal of Urban Economics, Elsevier, vol. 66(3), pages 179-185, November.
    3. Gordon Mulligan & Mark Partridge & John Carruthers, 2012. "Central place theory and its reemergence in regional science," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 48(2), pages 405-431, April.
    4. Tabuchi, Takatoshi & Thisse, Jacques-François, 2011. "A new economic geography model of central places," Journal of Urban Economics, Elsevier, vol. 69(2), pages 240-252, March.
    5. Wei Lang & Muzhe Pan & Jiemin Wu & Tingting Chen & Xun Li, 2021. "The patterns and driving forces of uneven regional growth in ASEAN countries: A tale of two Thailands' path toward regional coordinated development," Growth and Change, Wiley Blackwell, vol. 52(1), pages 130-149, March.

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