The Multiregional Core-periphery Model: The Role of the Spatial Topology
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We use the multiregional core-periphery model of the new economic geography to analyze and compare the agglomeration and dispersion forces shaping the location of economic activity for a continuum of network topologies — spatial or geographic configuration — characterized by their degree of centrality, and comprised between two extremes represented by the homogenous (ring) and the heterogeneous (star) configurations. Resorting to graph theory, we systematically extend the analytical tools and graphical representations of the core-periphery model for alternative spatial configuration, and study the sustain and break points. We study new phenomena such as the infeasibility of the dispersed equilibrium in the heterogeneous space, resulting in the introduction of the concept pseudo flat-earth as a long-run equilibrium corresponding to an uneven distribution of economic activity between regions.
KeywordsNew economic geography Space topology Transport costs Networks
We are grateful to Martijn Smit, Andrés Rodriguez-Pose, Kristian Behrens and two anonymous referee for useful comments and suggestions. A previous version of this paper was presented at the 52nd European Congress of the RSAI (Bratislavia, Slovakia), the 59th Annual Northe Amatican meetings of the RSAI, (Ottawa, Canada) and in the seminar series at New York University. This work was supported by Madrid’s Directorate-General of Universities and Research (S2007-HUM-0467), the Spanish Ministry of Education (AP2010-1401), and the Spanish Ministry of Science and Innovation (ECO2010-21643 and ECO2013-46980-P).
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