A Monopolistic Competitive Model of Spatial Agglomeration with Variable Density

Abstract

In this paper, we combine the monopolistic competition model of Fujita (1988) with the variable density model by Tabuchi (1986), Liu (1988) and Grimaud (1989), and develop a monopolistic competition model of spatial agglomeration with variable density. We compare the results of the present paper with those of previous work, and show that some previous results cannot be carried over to our generalized model with variable density.