Year: 1991
Type: report
Abstract: This paper develops models of spatial equilibrium in which a central metropolis emerges to supply manufactured goods to an agricultural hinterland.The location of the metropolis is not fully determined by the location of resources: as long as it is not too far from the geographical center of the region, the concentration of economic mass at the metropolis makes it the optimal location for manufacturing firms, and is thus selfjustifying.The approach in this paper therefore helps explain the role of historical accident and self-fulfilling expectations in metropolitan location.
DOI: 10.3386/w3740
Author: Paul Krugman
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2009084946