Autor(es):
Vasco Leite 
; Sofia B. S. D. Castro ; João Correia-da-Silva
Data: 2013
Identificador Persistente: http://hdl.handle.net/10216/65306
Origem: Repositório Aberto da Universidade do Porto
Detalhes do Documento
A third sector in the core-periphery model: non-tradable goods
Descrição
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.
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.
Tipo de Documento
Artigo
Idioma Inglês
Idioma Inglês
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