<p>The core-periphery model with transport costs in differentiated agriculture is extended to continuous space. A homogeneous stationary solution is unstable but exhibits re-multi-polarization; it is stabilized by both sufficiently low and sufficiently high manufacturing transport costs but destabilized by intermediate manufacturing transport costs. It is numerically observed that a solution starting from around the unstable homogeneous solution eventually forms a spike-like agglomeration. Moreover, the re-multi-polarization also appears in the sense that the number of spikes goes from decreasing to increasing as the manufacturing transport costs decrease. It is also observed that lower agricultural transport costs and a stronger preference for agricultural variety promote agglomeration.</p>

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Continuous space core-periphery model with transport costs in differentiated agriculture

  • Kensuke Ohtake

摘要

The core-periphery model with transport costs in differentiated agriculture is extended to continuous space. A homogeneous stationary solution is unstable but exhibits re-multi-polarization; it is stabilized by both sufficiently low and sufficiently high manufacturing transport costs but destabilized by intermediate manufacturing transport costs. It is numerically observed that a solution starting from around the unstable homogeneous solution eventually forms a spike-like agglomeration. Moreover, the re-multi-polarization also appears in the sense that the number of spikes goes from decreasing to increasing as the manufacturing transport costs decrease. It is also observed that lower agricultural transport costs and a stronger preference for agricultural variety promote agglomeration.