FIRST NATURE, SECOND NATURE, AND METROPOLITAN LOCATION
- 1 May 1993
- journal article
- Published by Wiley in Journal of Regional Science
- Vol. 33 (2) , 129-144
- https://doi.org/10.1111/j.1467-9787.1993.tb00217.x
Abstract
Economies of scale, transportation costs, and factor mobility can interact to produce agglomerations even in the absence of any pure external economies. This paper offers a monopolistic competition model of a city that serves an agricultural hinterland; unlike most analyses in location theory, the model is fully general equilibrium, but it has strong links to older concepts in geography, notably the idea of “market potential.” The analysis shows that the forward and backward linkages that hold a population concentration together also allow that concentration to occur in a variety of possible sites—that is, there are multiple equilibria (indeed a continuum) for metropolitan location.Keywords
This publication has 3 references indexed in Scilit:
- Increasing Returns and Economic GeographyJournal of Political Economy, 1991
- Comparative Advantage, Geographic Advantage, and the Volume of TradePublished by National Bureau of Economic Research ,1990
- A monopolistic competition model of spatial agglomerationRegional Science and Urban Economics, 1988