Skip Navigation


Journal of Economic Geography Advance Access originally published online on November 4, 2004
Journal of Economic Geography 2005 5(2):201-234; doi:10.1093/jnlecg/lbh037
This Article
Right arrow Full Text (PDF)
Right arrow All Versions of this Article:
5/2/201    most recent
lbh037v1
Right arrow Alert me when this article is cited
Right arrow Alert me if a correction is posted
Services
Right arrow Email this article to a friend
Right arrow Similar articles in this journal
Right arrow Alert me to new issues of the journal
Right arrow Add to My Personal Archive
Right arrow Download to citation manager
Right arrowRequest Permissions
Google Scholar
Right arrow Articles by Robert-Nicoud, F.
Right arrow Search for Related Content
Related Collections
Right arrow C62 - Existence and Stability Conditions of Equilibrium
Right arrow D58 - Computable and Other Applied General Equilibrium Models
Right arrow F12 - Models of Trade with Imperfect Competition and Scale Economies
Right arrow M10 - General
Right arrow R12 - Size and Spatial Distributions of Regional Economic Activity
Social Bookmarking
Add to CiteULike   Add to Connotea   Add to Del.icio.us  
What's this?


Journal of Economic Geography, Vol. 5, No. 2, © Oxford University Press 2005; all rights reserved.

The structure of simple ‘New Economic Geography’ models (or, On identical twins)

Frédéric Robert-Nicoud*

* Département d'Economie Politique, University of Geneva, Bd. Du Pont d'Arve 40, 1211 Geneva 4, Switzerland; and CEPR. email <Robert{at}ecopo.unige.ch>

Abstract

This paper shows that the mathematical structure of the most widely used New Economic Geography models is identical, irrespective of the underlying agglomeration mechanism assumed (factor migration, input-output linkages, endogenous capital accumulation). This enables us to provide analytical proofs to four important and related results in the field. First, standard models display at most two interior steady states beyond the symmetric one. Second, when interior, asymmetric steady-states exist they are unstable. Third, location displays hysteresis. Finally, with forward looking agents a shock to expectations might trigger an equilibrium switch. This paper also stresses the empirical implications of the most important results derived in this study.

Keywords: New Economic Geography, natural state space, number of steady-states, stability, hysteresis, expectations,
JEL classifications: C62, D58, F12, R12
Date submitted: 2 March 2004     Date accepted: 9 April 2004


Add to CiteULike CiteULike   Add to Connotea Connotea   Add to Del.icio.us Del.icio.us    What's this?


This article has been cited by other articles:


Home page
 J ECON GEOGRHome page
M. Pfluger and J. Sudekum
A synthesis of footloose-entrepreneur new economic geography models: when is agglomeration smooth and easily reversible?
J. Econ. Geogr., January 1, 2008; 8(1): 39 - 54.
[Abstract] [Full Text] [PDF]


Disclaimer: Please note that abstracts for content published before 1996 were created through digital scanning and may therefore not exactly replicate the text of the original print issues. All efforts have been made to ensure accuracy, but the Publisher will not be held responsible for any remaining inaccuracies. If you require any further clarification, please contact our Customer Services Department.