Negative feedbacks in the economy and industrial location

Article Abstract:

A general equilibrium model was developed to determine the effects of negative economic feedbacks such as congestion due to pollution and lack of space due to limited resources on the economy. The location of industries is affected by negative economic feedbacks by balancing the aggregation and spreading of industrial activity. Furthermore, short-term and long-term equilibria are affected by changes in the economic forces of spreading and aggregation which are restored by the redistribution of manpower.

Economics, Research and Development in the Social Sciences and Humanities, Analysis, Macroeconomics, Economic stabilization

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The return of Zipf: towards a further understanding of the rank-size distribution

Article Abstract:

A general-equilibrium economic model based on microeconomic principles is used to demonstrate how the rank-size distribution can be obtained from the model. To provide understanding of Zipf's law, the model incorporates negative feedbacks or negative externalities that interpret the co-existence of large and small cities. In addition, the model can produce a size distribution of cities that satisfies the requirements of the rank-size distribution.

Mathematical models, Economic geography

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