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Spatial Economy Cities, Regions and International Trade

ISBN-10: 0262062046

ISBN-13: 9780262062046

Edition: 1999

Authors: Masahisa Fujita, Paul Krugman, Anthony J. Venables

List price: $62.50
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Since 1990 there has been a renaissance of theoretical and empirical work on the spatial aspects of the economy. This text discusses what has emerged as one of the most exciting areas of contemporary economics - the new economic geography.
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Book details

List price: $62.50
Copyright year: 1999
Publisher: MIT Press
Publication date: 7/2/1999
Binding: Hardcover
Pages: 381
Size: 6.50" wide x 9.50" long x 1.25" tall
Weight: 1.694
Language: English

Paul Krugman was born on February 28, 1953. He received a B.S. in economics from Yale University in 1974 and a Ph.D from MIT in 1977. From 1982 to 1983, he worked at the Reagan White House as a member of the Council of Economic Advisers. He taught at numerous universities including Yale University, MIT, UC Berkeley, the London School of Economics, and Stanford University before becoming a professor of economics and international affairs at Princeton University in 2000. He has written over 200 scholarly papers and 20 books including Peddling Prosperity; International Economics: Theory and Policy; The Great Unraveling; and The Conscience of a Liberal. Since 2000, he has written a twice-weekly column for The New York Times. He received the 1991 John Bates Clark Medal and the 2008 Nobel Memorial Prize in Economic Sciences.

The Rediscovery of Geography
Linkages and Circular Causation
Modeling Tricks: Dixit-Stiglitz, Icebergs, Evolution, and the Computer
Two Useful Questions
Plan of the Book
Some Intellectual Background
Antecedents I: Urban Economics
The von Thunen Model
Explaining Cities: External Economies
Urban Systems
Multiple Subcenters
Uses and Limits of Traditional Urban Economics
Antecedents II: Regional Science
Central-Place Theory
Base-Multiplier Analysis
Market Potential Analysis
Limitations of Regional Science
A Brief Introduction to Bifurcations
Labor Mobility and Regional Development
The Dixit-Stiglitz Model of Monopolistic Competition and Its Spatial Implications
Consumer Behavior
Multiple Locations and Transport Costs
Producer Behavior
Some Normalizations
The Price Index Effect and the Home Market Effect
The "No-Black-Hole" Condition
Core and Periphery
Instantaneous Equilibrium
The Core-Periphery Model: Statement and Numerical Examples
When Is a Core-Periphery Pattern Sustainable?
When is the Symmetric Equilibrium Broken?
Implications and Conclusions
Symmetry Breaking
Many Regions and Continuous Space
The Three-Region Case
The Racetrack Economy
The Turing Approach
The Growth Rate of a Fluctuation
Determining the Preferred Frequency: The Large Economy
From Local to Global
Simulation Parameters
Agricultural Transport Costs
Trade Costs: The Realities
Trade Costs: The Model
Core-Periphery or Symmetry?
Differentiated Agricultural Products
Symmetry Breaking
Simulation Parameters
The Urban System
Spatial Models of Urban Systems: A Heuristic Introduction
Location Decisions and the Distribution of Demand
Sustaining and Locking In Urban Location
Population Growth and City Formation
Urban Hierarchies
Ports and Transportation Hubs
The Monocentric Economy
The Model
The von Thunen Economy
The Market Potential Function
The Potential Function and the Sustainability of a City
On the Definition of the Market Potential Function
The Limit Market Potential Function
The Emergence of New Cities
Adjustment Dynamics and the Stability of the Spatial System
From One City to Three
Emergence of New Cities in the Long Run
Bifurcation with Costly Transport of Agricultural Goods
Supplementary Calculations for Appendix 10.1
Adjustment Dynamics of a General Three-City Case
Evolution of a Hierarchical Urban System
The Formation of an Urban Hierarchy in Nineteenth-Century America
The Model
The Monocentric System
Self-Organization Toward a Hierarchical System
The Equilibrium of the Agricultural Market
The Equilibrium Conditions of the Monocentric Economy
The Proof that (11.16) Implies (11.17)
An Empirical Digression: The Sizes of Cities
The Size Distribution of Cities
Do Urban Theories Predict the Rank-Size Rule?
Can Random Growth Explain the Rank-Size Rule?
Ports, Transportation Hubs, and City Location
The Monocentric Economy
The Impact of a Transportation Hub on the Market Potential Function
Patterns of Spatial Evolution
International Trade
International Specialization
A Model with Intermediate Goods
The Structure of Equilibria
Agglomeration and National Inequalities
Decreasing Returns in Agriculture
Symmetry Breaking
Simulation Parameters
Economic Development and the Spread of Industry
Growth and Sustainable Wage Differentials
Many Industries and Many Countries
The Multicountry, Multi-Industry Model
Simulation Parameters
Industrial Clustering
Industrial Clusters: The Evidence
Industrial Clusters: The Model
Concentration or Dispersion?
Adjustment and Real Income
Multiple Factors: Industrial Clustering in a Heckscher-Ohlin World
Multiple Industries and Sustainable Cross-Country Differences
Symmetry Breaking
Adjustment and Real Income
The Production Possibility Frontier
Multiple Industries
Simulation Parameters
A Seamless World
The Model
The Frequency of Agglomeration
From Local to Global
Punctuated Equilibrium
Multiple Industries
Center and Periphery
Symmetry Breaking
Simulation Parameters
External Trade and Internal Geography
Urban Concentration in an Open Economy
The Effects of Trade Liberalization
Industrial Clustering and External Trade
Industrial Structure and Urban Concentration
Symmetry Breaking
Simulation Parameters
The Way Forward
The Theoretical Menu
Empirical Work
Welfare Implications
Where We Stand