The Spatial Economy: Cities, Regions, and International Trade / Edition 1

The Spatial Economy: Cities, Regions, and International Trade / Edition 1

by Masahisa Fujita, Paul Krugman, Anthony J. Venables
     
 

View All Available Formats & Editions

ISBN-10: 0262062046

ISBN-13: 9780262062046

Pub. Date: 07/02/1999

Publisher: MIT Press

Since 1990 there has been a renaissance of theoretical and empirical work on the spatial aspects of the economy -- that is, where economic activity occurs and why. Using new tools -- in particular, modeling techniques developed to analyze industrial organization, international trade, and economic growth -- this "new economic geography" has emerged as one of the most

Overview

Since 1990 there has been a renaissance of theoretical and empirical work on the spatial aspects of the economy -- that is, where economic activity occurs and why. Using new tools -- in particular, modeling techniques developed to analyze industrial organization, international trade, and economic growth -- this "new economic geography" has emerged as one of the most exciting areas of contemporary economics.

The authors show how seemingly disparate models reflect a few basic themes, and in so doing they develop a common "grammar" for discussing a variety of issues. They show how a common approach that emphasizes the three-way interaction among increasing returns, transportation costs, and the movement of productive factors can be applied to a wide range of issues in urban, regional, and international economics. This book is the first to provide a sound and unified explanation of the existence of large economic agglomerations at various spatial scales.

Product Details

ISBN-13:
9780262062046
Publisher:
MIT Press
Publication date:
07/02/1999
Edition description:
First Edition
Pages:
381
Product dimensions:
6.40(w) x 9.27(h) x 1.26(d)

Table of Contents

Prefacexi
1Introduction1
1.1The Rediscovery of Geography1
1.2Linkages and Circular Causation4
1.3Modeling Tricks: Dixit-Stiglitz, Icebergs, Evolution, and the Computer6
1.4Two Useful Questions9
1.5Plan of the Book10
ISome Intellectual Background13
2Antecedents I: Urban Economics15
2.1The von Thunen Model15
2.2Explaining Cities: External Economies18
2.3Urban Systems19
2.4Multiple Subcenters22
2.5Uses and Limits of Traditional Urban Economics23
Notes24
3Antecedents II: Regional Science25
3.1Central-Place Theory26
3.2Base-Multiplier Analysis27
3.3Market Potential Analysis32
3.4Limitations of Regional Science33
AppendixA Brief Introduction to Bifurcations34
Notes41
IILabor Mobility and Regional Development43
4The Dixit-Stiglitz Model of Monopolistic Competition and Its Spatial Implications45
4.1Consumer Behavior46
4.2Multiple Locations and Transport Costs49
4.3Producer Behavior50
4.4Some Normalizations54
4.5The Price Index Effect and the Home Market Effect55
4.6The "No-Black-Hole" Condition58
Notes59
5Core and Periphery61
5.1Assumptions61
5.2Instantaneous Equilibrium63
5.3The Core-Periphery Model: Statement and Numerical Examples65
5.4When Is a Core-Periphery Pattern Sustainable?69
5.5When is the Symmetric Equilibrium Broken?71
5.6Implications and Conclusions75
AppendixSymmetry Breaking76
Notes77
6Many Regions and Continuous Space79
6.1The Three-Region Case79
6.2The Racetrack Economy82
6.3The Turing Approach85
6.4The Growth Rate of a Fluctuation88
6.5Determining the Preferred Frequency: The Large Economy91
6.6From Local to Global94
6.7Conclusions94
AppendixSimulation Parameters95
Notes95
7Agricultural Transport Costs97
7.1Trade Costs: The Realities97
7.2Trade Costs: The Model99
7.3Core-Periphery or Symmetry?100
7.4Differentiated Agricultural Products105
7.5Conclusions110
Appendix 7.1Symmetry Breaking111
Appendix 7.2Simulation Parameters114
Notes115
IIIThe Urban System117
8Spatial Models of Urban Systems: A Heuristic Introduction119
8.1Location Decisions and the Distribution of Demand120
8.2Sustaining and Locking In Urban Location121
8.3Population Growth and City Formation126
8.4Urban Hierarchies128
8.5Ports and Transportation Hubs129
8.6Conclusions131
Notes132
9The Monocentric Economy133
9.1The Model134
9.2The von Thunen Economy136
9.3The Market Potential Function140
9.4The Potential Function and the Sustainability of a City143
Appendix 9.1On the Definition of the Market Potential Function148
Appendix 9.2The Limit Market Potential Function149
Notes149
10The Emergence of New Cities151
10.1Adjustment Dynamics and the Stability of the Spatial System152
10.2From One City to Three154
10.3Emergence of New Cities in the Long Run160
10.4Conclusions167
Appendix 10.1Bifurcation with Costly Transport of Agricultural Goods168
Appendix 10.2Supplementary Calculations for Appendix 10.1171
Appendix 10.3Adjustment Dynamics of a General Three-City Case175
Notes179
11Evolution of a Hierarchical Urban System181
11.1The Formation of an Urban Hierarchy in Nineteenth-Century America182
11.2The Model184
11.3The Monocentric System186
11.4Self-Organization Toward a Hierarchical System191
11.5Conclusions203
Appendix 11.1The Equilibrium of the Agricultural Market205
Appendix 11.2The Equilibrium Conditions of the Monocentric Economy206
Appendix 11.3The Proof that (11.16) Implies (11.17)207
Notes212
12An Empirical Digression: The Sizes of Cities215
12.1The Size Distribution of Cities215
12.2Do Urban Theories Predict the Rank-Size Rule?217
12.3Can Random Growth Explain the Rank-Size Rule?219
12.4Conclusions225
Note225
13Ports, Transportation Hubs, and City Location227
13.1The Monocentric Economy228
13.2The Impact of a Transportation Hub on the Market Potential Function231
13.3Patterns of Spatial Evolution233
13.4Conclusions235
Notes236
IVInternational Trade237
14International Specialization239
14.1A Model with Intermediate Goods241
14.2The Structure of Equilibria245
14.3Agglomeration and National Inequalities251
14.4Decreasing Returns in Agriculture256
14.5Conclusions259
Appendix 14Symmetry Breaking260
Appendix 14.2Simulation Parameters261
Notes261
15Economic Development and the Spread of Industry263
15.1Growth and Sustainable Wage Differentials264
15.2Many Industries and Many Countries270
15.3Conclusions277
Appendix 15.1The Multicountry, Multi-Industry Model278
Appendix 15.2Simulation Parameters280
Notes281
16Industrial Clustering283
16.1Industrial Clusters: The Evidence284
16.2Industrial Clusters: The Model285
16.3Concentration or Dispersion?287
16.4Adjustment and Real Income291
16.5Multiple Factors: Industrial Clustering in a Heckscher-Ohlin World293
16.6Multiple Industries and Sustainable Cross-Country Differences298
16.7Conclusions303
Appendix 16.1Symmetry Breaking304
Appendix 16.2Adjustment and Real Income305
Appendix 16.3The Production Possibility Frontier306
Appendix 16.4Multiple Industries306
Appendix 16.5Simulation Parameters307
Notes307
17A Seamless World309
17.1The Model310
17.2The Frequency of Agglomeration313
17.3From Local to Global317
17.4Punctuated Equilibrium319
17.5Multiple Industries321
17.6Center and Periphery322
17.7Conclusions325
Appendix 17.1Symmetry Breaking325
Appendix 17.2Simulation Parameters326
Notes327
18External Trade and Internal Geography329
18.1Urban Concentration in an Open Economy331
18.2The Effects of Trade Liberalization332
18.3Industrial Clustering and External Trade335
18.4Industrial Structure and Urban Concentration338
18.5Conclusions340
Appendix 18.1Symmetry Breaking341
Appendix 18.2Simulation Parameters343
Notes343
19The Way Forward345
19.1The Theoretical Menu346
19.2Empirical Work347
19.3Quantification347
19.4Welfare Implications348
19.5Where We Stand349
References351
Index357

Customer Reviews

Average Review:

Write a Review

and post it to your social network

     

Most Helpful Customer Reviews

See all customer reviews >