英文摘要 |
"This study discusses a standard core-periphery model by adding the cost of living. The model is based on Pfiüger and Südekum (2008), but the quasi-linear utility function changes to the Cobb-Douglas function based upon Forslid and Ottaviano (2003). We present the income effect in a mechanism of an agglomeration economy and focus the analysis on two issues. First, what are the impacts of land rent on the spatial structure under different assumptions? Second, what are the differences between the optimal spatial allocation and the market equilibrium? We then compare our findings with the results of Pfiüger and Südekum (2008), with the main conclusions as follows. (1) When trade freeness is high, the social optimum of Forslid and Ottaviano (2003) is agglomeration, but our study exhibits dispersion. (2) Unlike Pfiüger and Südekum (2008) in which “over-agglomeration” (market equilibrium versus social optimum) is the only case during low trade freeness, our study finds that “under-agglomeration” may also occur in low housing preference and low elasticity of substitution for differential goods. Our results show that when the model ignores the income effect, it is possible to misjudge the social optimum of spatial configuration. " |