Spatial period-doubling agglomeration of a core-periphery model with a system of cities

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Abstract

The progress of spatial agglomeration of Krugman's core-periphery model is investigated by comparative static analysis of stable equilibria with respect to transport costs. We set forth theoretically possible agglomeration (bifurcation) patterns for a system of cities spread uniformly on a circle. A possible and most likely course predicted is a gradual and successive one, which is called spatial period doubling. For example, eight cities concentrate into four cities and then into two cities en route to the formation of a single city. The existence of this course is ensured by numerical simulation for the model. Such a gradual and successive agglomeration presents a sharp contrast to the agglomeration of two cities, for which spontaneous concentration to a single city is observed in core-periphery models of various kinds. Other bifurcations that do not take place in two cities, such as period tripling, are also observed. The need for study of a system of cities has thus been demonstrated.

Original languageEnglish
Pages (from-to)754-778
Number of pages25
JournalJournal of Economic Dynamics and Control
Volume36
Issue number5
DOIs
Publication statusPublished - 2012 May 1

Keywords

  • Agglomeration of population
  • Bifurcation
  • Core-periphery model
  • Group theory
  • Spatial period doubling

ASJC Scopus subject areas

  • Economics and Econometrics
  • Control and Optimization
  • Applied Mathematics

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