Increasing Returns and Economic Geography.

Krugman, P. (1991). Increasing Returns and Economic Geography. Journal of Political Economy, 99(3), 483-499.

Type

Journal article

Intellectual base

Primary research

Year

1991

DOI

10.1086/261763

Link

https://doi.org/10.1086/261763

Cited from

economics_finance, information_theory, sociology_anthropology

Cited by

5 citations across 5 artifacts.

Each citation links to the sentence it supports in the citing article.

Primes

• Coordination Problem and Equilibrium Selection
  • The equilibrium persists not because it is objectively best but because it was first and is now locked in by the sunk cost, a "history versus expectations" dynamic Krugman (1991) formalized for spatial economic systems with increasing returns.

    This sourceFormal core-periphery model in which agglomeration and urban concentration emerge from increasing returns at the geographic scale; supports the 'history versus expectations' framing of spatial lock-in.

• Economies of Scale

  • This source(Tier C — bibliography only; existence verified.) Core-periphery model deriving agglomeration from scale economies and transport costs. Link-only.

• Gains from Trade
  • - T3: Static Comparative Advantage vs Dynamic Learning and Industrial Policy. (Krugman (1991) extended new-trade-theory mechanisms (Krugman 1979) to show how scale economies, learning curves, and geography make comparative advantage endogenous over time.)

    This sourceCore-periphery model in which scale economies, learning, and geography make industrial location (and thus comparative advantage) endogenous; supports the T3 claim that comparative advantage is dynamic and can be shaped by investment/learning curves over time.

• Increasing Returns
  • … retains a domain-specific reinforcement mechanism that the umbrella deliberately abstracts away, so the cross-substrate topology lives at the umbrella while the mechanism lives at the child, a hierarchical separation Krugman (1991) used when porting increasing-returns logic across trade and geography.
• Self-Fulfilling Prophecy
  • Political science: security dilemmas in international relations show how expectation of aggression drives defensive behavior that appears aggressive, producing the expected conflict

Verification

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