Konstantin Kucheryavyy
Spatial Equilibria: The Case of Two Regions
Kucheryavyy, Konstantin; Lyn, Gary; Rodríguez-Clare, Andrés
Authors
Gary Lyn
Professor ANDRES RODRIGUEZ-CLARE Andres.Rodriguez-Clare@nottingham.ac.uk
PROFESSOR OF ECONOMICS
Abstract
In this paper we characterize the set of equilibria in a generalized version of the canonical two-region economic geography model that nests the class of models in Allen and Arkolakis (2014) as well as Krugman (1991) and features an input-output loop. We provide sufficient conditions for uniqueness of equilibria that-in contrast to the well-know result in Allen and Arkolakis (2014)-allow for positive agglomeration externalities, which concentrate economic activity, even in the absence of congestion effects, which disperse it, and highlight the key role played by three additional parameters: the trade elasticity, which regulates the strength of the dispersion force associated with the decline in the terms of trade caused by migration into a region; trade costs, which weaken this dispersion force by limiting trade across regions; and the importance of the agricultural sector, which pushes against agglomeration forces in manufacturing.
Citation
Kucheryavyy, K., Lyn, G., & Rodríguez-Clare, A. (2024). Spatial Equilibria: The Case of Two Regions. Journal of International Economics, 152, Article 104008. https://doi.org/10.1016/j.jinteco.2024.104008
Journal Article Type | Article |
---|---|
Acceptance Date | Nov 10, 2023 |
Online Publication Date | Oct 15, 2024 |
Publication Date | 2024-11 |
Deposit Date | Sep 19, 2024 |
Publicly Available Date | Apr 16, 2026 |
Journal | Journal of International Economics |
Print ISSN | 0022-1996 |
Electronic ISSN | 1873-0353 |
Publisher | Elsevier |
Peer Reviewed | Peer Reviewed |
Volume | 152 |
Article Number | 104008 |
DOI | https://doi.org/10.1016/j.jinteco.2024.104008 |
Keywords | economic geography; agglomeration externalities; trade JEL Classification: F12; R12; R13; D50 |
Public URL | https://nottingham-repository.worktribe.com/output/39723866 |
Publisher URL | https://www.sciencedirect.com/science/article/pii/S0022199624001351 |
Files
This file is under embargo until Apr 16, 2026 due to copyright restrictions.
You might also like
The small open economy in a generalized gravity model
(2024)
Journal Article
The Intensive Margin in Trade: How Big and How Important?
(2023)
Journal Article
Grounded by Gravity: A Well-Behaved Trade Model with Industry-Level Economies of Scale
(2023)
Journal Article
Slicing the Pie: Quantifying the Aggregate and Distributional Effects of Trade
(2022)
Journal Article
Micro to Macro: Optimal Trade Policy With Firm Heterogeneity
(2020)
Journal Article
Downloadable Citations
About Repository@Nottingham
Administrator e-mail: discovery-access-systems@nottingham.ac.uk
This application uses the following open-source libraries:
SheetJS Community Edition
Apache License Version 2.0 (http://www.apache.org/licenses/)
PDF.js
Apache License Version 2.0 (http://www.apache.org/licenses/)
Font Awesome
SIL OFL 1.1 (http://scripts.sil.org/OFL)
MIT License (http://opensource.org/licenses/mit-license.html)
CC BY 3.0 ( http://creativecommons.org/licenses/by/3.0/)
Powered by Worktribe © 2025
Advanced Search