A third sector in the core-periphery model: non-tradable goods

• Type: Article in International Scientific Journal
• Date: 2013

Authors

leite, v (Author) Other; castro, sbsd (Author) FEP; correia-da-silva, j (Author) FEP

Journal

Title: Annals of Regional Science

Vol. 50

Pages: 71-108

ISSN: 0570-1864

Publisher: Springer Nature

Indexing

ISI Web of Knowledge - 3 Citations

Scopus - 4 Citations

Scientific classification

FOS: Social sciences > Economics and Business

Other information

Authenticus ID: P-002-0VA

DOI: 10.1007/s00168-011-0479-8

Abstract (EN): We extend an analytically solvable core-periphery model by introducing a monopolistically competitive sector of non-tradable goods that is mobile across regions. We find that when the elasticity of substitution among non-tradable goods is very low, there is agglomeration of all the production (of both tradable and non-tradable goods). When the elasticity of substitution among non-tradable goods is sufficiently high ("no black-hole" condition), then there is symmetric dispersion of all the production, if trade costs are high; or full agglomeration of the production of tradable goods with partial agglomeration of the production of non-tradable goods, if trade costs are low.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 38