A monopolistic competition model of spatial agglomeration with variable density

Liu, Hsiao-Lan; Fujita, Masahisa

doi:10.1007/bf01581888

Cited by 8 publications

(5 citation statements)

References 8 publications

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“…This means that many kinds of spillovers are also limited by distance: the key channels for foreign direct investment (FDI) spillovers -labor turnover, demonstration effects, competition and cooperation with upstream suppliers (backward linkages) and downstream customers (forward linkages) -are geographically restricted in many industries. 2 2 For theoretical developments on the role of spatial agglomeration see the work of Liu and Fujita (1991), who use a monopolistic competition model to compare equilibrium urban configurations with optional configurations. Further, Fujita (2007) proposes the development of a "new economic geography," which Another factor highlighted in the literature on spillovers is the decision to engage in export activity.…”

Section: Literature Reviewmentioning

confidence: 99%

How important is geographical agglomeration to factory efficiency in Japan’s manufacturing sector?

2014

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In this paper, geographical spillover potential is modeled and empirically examined using factory-level data from Japan's Census of Manufactures. First, the efficiency of each factory is estimated using a non-parametric data envelopment analysis (DEA) model for each industry. Second, the geographical distances to the most efficient factory in the prefecture and Japan overall are estimated. Third, the determinants of the factories' performance are identified and estimated. We find that clustering occurs in each industry, and efficient factories concentrate in certain regions. The percentage of efficient firms out of the total number of firms is particularly high in the Chubu and Tohoku regions. The estimation results also suggest that proximity to the most efficient factories plays a statistically significant role in determining the efficiency of factories in Japan in most industries. However, this is not the case in high-tech industries.

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Section: Literature Reviewmentioning

confidence: 99%

How important is geographical agglomeration to factory efficiency in Japan’s manufacturing sector?

2014

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“…Unfortunately, the P&T model assumed that firms did not occupy land and so the potentially important implications of competition for land between households and firms were overlooked. Fujita's (1988) model of monopolistic competition showed how market processes can generate spatial agglomeration, and this approach was extended by Liu and Fujita (1991) to allow land-use density to vary over the urban space. An important implication of that model for the empirical estimation of employment is that floor space equilibrium conditions require that 'each unit of floor space must be occupied by either a household or firm which bids a higher floor rent at that location' (Liu & Fajita, 1991, p.88).…”

Section: Theoretical Basis For Linking Real Estate With Employment Lomentioning

confidence: 99%

Implications of Rising Flood Risk for Residential Real Estate Prices and the Location of Employment

Chen¹,

Fingleton²,

Galster³

et al. 2011

Proceedings of the 18th Annual European Real Estate Society Conference - Eindhoven, the Netherlands

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The Working Papers series is intended to reflect the diverse range of interdisciplinary research interests of staff in the College of Social Sciences at the University of Glasgow. By publishing papers as works in progress, it aims to encourage and promote the interdisciplinary research work of members of the College, and to provide a forum in which to share innovative ideas and approaches on interdisciplinary topics, and elicit feedback from peers before submitting to more formal refereed peer review in the form of conference papers or journal articles. To this end, the author's contact details for correspondence are normally provided in each paper.

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“…See Tabuchi (1986), Liu (1988) and Grimaud (1989). Since the market for office space is assumed as perfectly competitive, the profit of each developer should be zero in equilibrium: (2.9) where n,(z) is unit profit of a developer at z and R ( z ) is unit land rent at z.…”

Section: The Construction Sectormentioning

confidence: 99%

“…In Ogawa and Fujita's model this density is constant. Liu (1988) and Grimaud (1989) introduced a variable density into this model. However, the transaction cost in their studies is still a density-weighted linear function of distance in that the floor rent of different stories in the same building is the same.…”

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confidence: 99%

Variation of floor rent differentials of high-rise buildings

Liu

Chang

2004

Papers Reg. Sci.

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With rapid urbanisation, the demand for office floor space also increases. Although high-rise buildings are very common in urban areas, study of the rent for different stories in such buildings is relatively rare. Liu (1 988) and Grimaud ( I 989) separately applied agglomeration economies to study the density variation in urban areas. However, these studies assumed that the floor rent in the same building is the same for each story. Such an assumption about floor rent may not fully reflect actual floor rent and, from the perspectives of theoretical completeness and practical usefulness, formulation for different floor rents in high-rise buildings, and their effect on urban density variation should also be considered. This research note extends Ogawa and Fujita's locational potential function ( 1980) into two dimensions: flat dimension and story dimension. The modification of the locational potential function is then applied to revise Liu's model. Finally, the office distribution in a CBD (central business district) is then discussed. JEL classification: L74, R14, R33

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A monopolistic competition model of spatial agglomeration with variable density

Cited by 8 publications

References 8 publications

How important is geographical agglomeration to factory efficiency in Japan’s manufacturing sector?

How important is geographical agglomeration to factory efficiency in Japan’s manufacturing sector?

Implications of Rising Flood Risk for Residential Real Estate Prices and the Location of Employment

Variation of floor rent differentials of high-rise buildings

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