Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/70213
Authors: 
Krenz, Astrid
Year of Publication: 
2012
Series/Report no.: 
Discussion Papers, Center for European Governance and Economic Development Research 147
Abstract: 
This study investigates whether services sectors' agglomeration can be explained within a common New Economic Geography model by Krugman and Venables (1996). Special feature of this modeling is to account for the lower importance of intermediate goods received for the services sector, a fact that has been shown in Empirics for the European Union (Krenz (2010)). The results show different strengths of agglomeration for both the industrial and services sector depending on initial values of strength of intra-sectoral and inter-sectoral inputs, consumers' preferences, scale economies and transport costs. The lower extent of services sectors' agglomeration seen in Empirics can be explained within the model.
Subjects: 
agglomeration
services
New Economic Geography
JEL: 
L80
R12
Document Type: 
Working Paper

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