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.
Idioma:
Inglês
Tipo (Avaliação Docente):
Científica
Contacto:
vasco.leite@ccdr-n.pt; sdcastro@fep.up.pt; joao@fep.up.pt
Nº de páginas:
38
Tipo de Licença: