Abstract
We extend the mathematical model proposed by Ottaviano et al. (Int Econ Rev 43(2): 409–435, 2002) to a multi-regional case and investigate the stability of the homogeneous stationary solution of the model in a one-dimensional periodic space. When the number of regions is two and three, the homogeneous stationary solution is stable under sufficiently high transport cost. On the other hand, when the number of regions is a multiple of four, the homogeneous stationary solution is unstable under any values of the transport cost.
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Ohtake, K. Agglomeration triggered by the number of regions: a NEG model with a quadratic subutility function. Econ Theory Bull 10, 129–145 (2022). https://doi.org/10.1007/s40505-022-00222-6
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DOI: https://doi.org/10.1007/s40505-022-00222-6
Keywords
- New economic geography
- Differential equations
- Racetrack economy
- Self-organization
- Spatial patterns
- Number of cities