TY  - RPRT
        AU  - Pflüger, Michael P.
AU  - Suedekum, Jens
        TI  - On Pitchforks and Tomahawks
        PY  - 2007/Dec/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 3258
        UR  - https://www.iza.org/publications/dp3258
        AB  - The core-periphery model by Krugman (1991) has two 'dramatic' implications: catastrophic agglomeration and locational hysteresis. We study this seminal model with CES instead of Cobb-Douglas upper tier preferences. This small generalization suffices to change these stark implications. For a wide range of parameters we find that the model exhibits instead a smooth and easily reversible transition from symmetry to agglomeration.
        KW  - bifurcation pattern
KW  - agglomeration
KW  - new economic geography
KW  - core-periphery model
        ER  -