On Pitchforks and Tomahawks

Michael P. Pflüger () and Jens Suedekum
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Michael P. Pflüger: University of Würzburg

No 3258, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: The core-periphery model by Krugman (1991) has two 'dramatic' implications: catastrophic agglomeration and locational hysteresis. We study this seminal model with CES instead of Cobb-Douglas upper tier preferences. This small generalization suffices to change these stark implications. For a wide range of parameters we find that the model exhibits instead a smooth and easily reversible transition from symmetry to agglomeration.

Keywords: bifurcation pattern; agglomeration; new economic geography; core-periphery model (search for similar items in EconPapers)
JEL-codes: F12 F15 F22 R12 R50 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2007-12
New Economics Papers: this item is included in nep-geo, nep-int and nep-ure
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Citations: View citations in EconPapers (1)

Published - published in revised form in: Journal of Regional Science, 2011, 51 (2), 292-298

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Related works:
Journal Article: ON PITCHFORKS AND TOMAHAWKS* (2011)
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