Spatial Equilibria: The Case of Two Regions☆

• 成果类型: Article
• 署名作者: Kucheryavyy, Konstantin; Lyn, Gary; Rodriguez-Clare, Andres
• 署名单位: City University of New York (CUNY) System; Baruch College (CUNY); Federal Reserve System - USA; Federal Reserve System Board of Governors; University of California System; University of California Berkeley; National Bureau of Economic Research
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2024.104008
• 发表日期: 2024
• 关键词: Economic geography; Agglomeration externalities; TRADE

摘要

In this paper we characterize the set of equilibria in a generalized version of the canonical two- region economic geography model that nests the class of models in Allen and Arkolakis (2014) as well as Krugman (1991) and features an input-output loop. We provide sufficient conditions for uniqueness of equilibria that - in contrast to the well-know result in Allen and Arkolakis (2014) - allow for positive agglomeration externalities, which concentrate economic activity, even in the absence of congestion effects, which disperse it, and highlight the key role played by three additional parameters: the trade elasticity, which regulates the strength of the dispersion force associated with the decline in the terms of trade caused by migration into a region; trade costs, which weaken this dispersion force by limiting trade across regions; and the importance of the agricultural sector, which pushes against agglomeration forces in manufacturing.