The core-periphery model with three regions and more

Castro, S. B.S.D., Correia-da-Silva, J. and Mossay, P. (2012) The core-periphery model with three regions and more. Papers in Regional Science, 91 (2). pp. 401-418. ISSN 1435-5957 doi: 10.1111/j.1435-5957.2011.00381.x

Abstract/Summary

We determine the properties of the core-periphery model with three regions and compare our results with those of the standard 2-region model. The conditions for the stability of dispersion and concentration are established. As in the 2-region model, dispersion and concentration can be simultaneously stable. We show that the 3-region (2-region) model favours the concentration (dispersion) of economic activity. Furthermore, we provide some results for the n-region model. We show that the stability of concentration of the 2-region model implies that of any model with an even number of regions.