Density (dis)economies in transportation: revisiting the core-periphery model

Abstract

We study how density (dis)economies in interregional transportation influence location patterns in a standard new economic geography model. Density economies may well delay the occurrence of agglomeration when compared to the case without such economies, while agglomeration is both more likely and more gradual under density diseconomies than under density economies.density (dis)economies economic geography transport costs core-periphery model