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Stability and sustainability of urban systems under commuting and transportation costs

Author

Listed:
  • TAKAYAMA Yuki,

    (Kanazawa University)

  • IKEDA Kiyohiro,

    (Tohoku University)

  • THISSE Jacques-François,

    (Université catholique de Louvain, CORE, Belgium)

Abstract
This paper explores the conditions for the emergence of a system of cities in a general equilibrium setting that accounts for the cost of shipping commodities between cities and the commuting cost borne by consumers within cities. Potential cities are equally distributed over a circular space. We find that the multiplicity of stable spatial equilibria is the rule and not the exception. Using the concept of stability areas to study the transition from one stable equilibrium to the next, we show that decreasing commuting or transportation costs generate equilibrium paths that feature either a megalopolis or hierarchical system of cities.

Suggested Citation

  • TAKAYAMA Yuki, & IKEDA Kiyohiro, & THISSE Jacques-François,, 2020. "Stability and sustainability of urban systems under commuting and transportation costs," LIDAM Discussion Papers CORE 2020005, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2020005
    as

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    File URL: https://sites.uclouvain.be/core/publications/coredp/coredp2020.html
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. Kogure, Yosuke & Ikeda, Kiyohiro, 2022. "Group-theoretic Study of Economic Agglomerations on a Square Lattice," MPRA Paper 112842, University Library of Munich, Germany.
    2. Hui Chen & Sven Voigt & Xiaoming Fu, 2021. "Data-Driven Analysis on Inter-City Commuting Decisions in Germany," Sustainability, MDPI, vol. 13(11), pages 1-24, June.
    3. Ohtake, Kensuke, 2023. "Agglomeration and welfare of the Krugman model in a continuous space," Mathematical Social Sciences, Elsevier, vol. 123(C), pages 137-142.
    4. Ahlfeldt, Gabriel M. & Gobillon, Laurent, 2021. "Introduction to the Special issue: “Emerging Trends in Urban Economics”," Regional Science and Urban Economics, Elsevier, vol. 90(C).
    5. Kogure, Yosuke & Ikeda, Kiyohiro, 2021. "Group-theoretic analysis of a scalar field on a square lattice," MPRA Paper 107740, University Library of Munich, Germany.
    6. Hiroki Aizawa & Kiyohiro Ikeda & Yosuke Kogure, 2023. "Satellite City Formation for a Spatial Economic Model," Networks and Spatial Economics, Springer, vol. 23(3), pages 529-558, September.
    7. Seidel, Tobias & Wickerath, Jan, 2020. "Rush hours and urbanization," Regional Science and Urban Economics, Elsevier, vol. 85(C).
    8. SHIDA, Yoshisada, 2021. "Does the Currency Crisis Veil the Impact of Economic Sanctions under an Authoritarian Regime? An Inquiry into Russia," RRC Working Paper Series 91, Russian Research Center, Institute of Economic Research, Hitotsubashi University.
    9. Kazuhiro Kumo & Elena Shadrina, 2021. "On the Evolution of Hierarchical Urban Systems in Soviet Russia, 1897–1989," Sustainability, MDPI, vol. 13(20), pages 1-17, October.

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    More about this item

    Keywords

    economic geographpy; cities; racetrack economy; multiplicity of stable equilibria; commuting costs; transportation costs;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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