THE ELUDATION OF A CRITIC ON THE CORE-PERIPHERY MODEL - THE ANALYTIC SOLUTION –

Abstract

One of the major critiques of Paul Krugman’s standard core-periphery model (1991), which modelforms the bottom of so called ‘The New Economic Geography’, is the impossibility of his analyticsolution, reason for which difficult digital simulations are enforced. Getting a function and ananalytic solution enables a better description of the process of agglomeration and at the same time,the presentation of the authors, with title of novelty, of graphics on the logarithmic scale, whichaligns as a complementary form to the traditional ones. The adaptation and the presentation of themodel with a software help, as Maple computer program, permits also the complete understanding ofthe solvable analytic model.

Keywords

• Paul Krugman’s model
• Spatial equilibrium
• Analytic settled model