Agglomeration and spatial economy: Reconstruction of theoretical and empirical framework

About this project

Japan Grant Number
JP17H00987
Funding Program
Grants-in-Aid for Scientific Research
Funding organization
Japan Society for the Promotion of Science
Project/Area Number
17H00987
Research Category
Grant-in-Aid for Scientific Research (A)
Allocation Type
  • Single-year Grants
Review Section / Research Field
  • Humanities and Social Sciences > Social Sciences > Economics > Economic policy
Research Institution
  • Kyoto University
Project Period (FY)
2017-04-01 〜 2021-03-31
Project Status
Completed
Budget Amount*help
23,140,000 Yen (Direct Cost: 17,800,000 Yen Indirect Cost: 5,340,000 Yen)

Research Abstract

We have two main theoretical achievements. One concerns the agglomeration in a regional economy. We generalized the existing two-region models to a many-region setup and showed that they reduce to two prototypes regarding the equilibrium bifurcation behavior. The other concerns the agglomeration within a region, typically the business district formation within a city. We developed a potential game-theoretic approach to the formal solution for the models in this literature. On the empirical side, we showed in six major countries that the size-location pattern of cities exhibits spatial fractal structure associated with common power law for city sizes in each fractal part. We further showed evidence that this regularity accrues from the spatial coordination of many industries differing in increasing returns. We are in the process of replicating this empirical regularity from a many-region and many-industry extension of our theoretical model above.

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