Letters in Spatial and Resource Sciences

, Volume 4, Issue 1, pp 91–101

Non-negativity and agglomeration behaviour of the quasi-linear logarithmic model of NEG

Original Paper

Abstract

It is shown that negative consumption of agricultural goods can occur in the literature using the quasi-linear logarithmic NEG model initially developed in Pflüger (Reg. Sci. Urban Econ. 34:565–573, 2004). This is because the positive consumption condition stated in the original framework is not implemented. Satisfying this condition requires a constraint on the relative size of two of the core model parameters. Importantly, this is found to modify the agglomeration behaviour of the model which affects the results of the original framework and those of ensuing contributions.

Keywords

Agglomeration New economic geography Quasi-linear utility 

JEL Classification

D11 R12 F12 

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Copyright information

© Springer-Verlag 2011

Authors and Affiliations

  1. 1.School of Economics, Keynes CollegeUniversity of KentCanterburyUK

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