Abstract
This paper describes the spatial and functional evolution of a central place system as market conditions change with population growth. Utilizing a partial equilibrium optimization model, we examine the spatial response of two economic sectors to increases in market populations resulting from natural increase and migration. Response in both sectors is conditioned by threshold demand, with factor prices also affecting one of the sectors. As the central place system evolves it exhibits spatial and functional characteristics that are initially consistent with a Löschian landscape, then a Christallerian landscape at higher populations, while at even larger populations Krugman’s landscape emerges.
Similar content being viewed by others
References
Ades A, Glaeser E (1999) Evidence on growth, increasing returns, and the extent of the market. Q J Econ 114:1025–1045. doi:10.1162/003355399556205
Beaumont JR (1987) Location-allocation models and central place theory. In: Ghosh A, Rushton G (eds) Spatial analysis and location allocation models. Van Nostrand Reinhold Publishers, New York, pp 21–54
Becker G, Glaeser E, Murphy K (1999) Population and economic growth. Am Econ Rev 89:145–149
Beckman M (1995) Economic growth in a central place system. In: Giersch H (ed) Urban agglomeration and economic growth. Springer, Berlin, pp 107–115
Beckman M, McPherson A (1970) City size distribution in a central place hierarchy: an alternative approach. J Reg Sci 10:25–34. doi:10.1111/j.1467-9787.1970.tb00032.x
Brakman S, Gartretsen H, van Marrewijk C (2001) An introduction to geographical economics. Cambridge University Press, Cambridge
Christaller W (1933) Central places in Southern Germany. English translation by C. Baskin, 1966. Prentice-Hall, Englewood Cliffs
Eaton B, Lipsey R (1981) An economic theory of central places. Econ J 92:56–72. doi:10.2307/2232256
Fujita M, Mori T (1996) The role of ports in the making of major cities: self-agglomeration and hub-effect. J Dev Econ 49:93–120. doi:10.1016/0304-3878(95)00054-2
Fujita M, Krugman P, Venables A (1999) The spatial economy: cities, regions, and international trade. MIT Press, Cambridge
Goodfriend M, McDermott J (1995) Early development. Am Econ Rev 85:116–133
Green M, Cromley R, Semple K (1980) The bounded transportation problem. Econ Geogr 56:30–44. doi:10.2307/143026
Hooker J, Garfinkel R, Chen C (1991) Finite dominating sets for network location problems. Oper Res 39:100–118
Karlsson C, Nilsson R (2002) Agglomeration, economies of scale and dynamic specialization in a central place system. In: Johansson B, Karlsson C, Stough R (eds) Regional policies and comparative advantage. Edward Elgar, Cheltenham, pp 25–48
Kelly M (1997) The dynamics of Smithian growth. Q J Econ 112:939–964. doi:10.1162/003355397555398
Krugman P (1993) First nature, second nature, and metropolitan location. J Reg Sci 33:129–144. doi:10.1111/j.1467-9787.1993.tb00217.x
Krugman P (1995) Development, geography, and economic theory. MIT Press, Cambridge
Locay L (1990) Economic development and the division of production between households and markets. J Polit Econ 98:965–982. doi:10.1086/261715
Lösch A (1954) The economics of location, translated from the second revised edition by WH Woglom with the assistance of WF Stolper. Yale University Press, New Haven
Lucas R (1988) On the mechanics of economic development. J Monet Econ 22:3–42. doi:10.1016/0304-3932(88)90168-7
Marianov V, Serra D (2000) Hierarchical location-allocation models for congested systems. Univ Pompeu Fabra, Economics and Business Working Paper No. 425
McCann P (2005) Transport costs and new economic geography. J Econ Geogr 5:305–318. doi:10.1093/jnlecg/lbh050
McLafferty S, Ghosh A (1987) Optimal location and allocation with multipurpose shopping. In: Ghosh A, Rushton G (eds) Spatial analysis and location allocation models. Van Nostrand Reinhold Publishers, New York, pp 55–75
Myrdal G (1957) Economic theory and undeveloped regions. G. Duckworth, London
Nourse H (1978) Equivalence of central place and economic base theories of urban growth. J Urban Econ 5:543–549. doi:10.1016/0094-1190(78)90010-4
Pred A (1966) The spatial dynamics of US urban industrial growth, 1800–1914. MIT Press, Cambridge
Romer P (1986) Increasing returns and long run growth. J Polit Econ 94:1002–1037. doi:10.1086/261420
Smith A (1776) (1904 edition) An inquiry into the nature and causes of the wealth of nations. Methuen, London
Serra D, ReVelle C, Rosing K (1999) Surviving in a competitive spatial market: the threshold capture model. J Reg Sci 39:637–652. doi:10.1111/0022-4146.00153
Solow R (1956) A contribution to the theory of economic growth. Q J Econ 70:65–94. doi:10.2307/1884513
Stelder T (2005) Where do cities form? A geographical agglomeration model for Europe. J Reg Sci 45:657–679. doi:10.1111/j.0022-4146.2005.00388.x
Stigler G (1951) The division of labor is limited by the extent of the economy. J Polit Econ 59:185–193. doi:10.1086/257075
Teitz M, Bart P (1968) Heuristic methods for estimating the generalized vertex median of a weighted graph. Oper Res 16:955–965
Volckart O, Wolf N (2004) Estimating medieval market integration: evidence from exchange rates. Diskussionbeitrage Fachbereichs Wirtschaftwiswsenschaft Freien Univ Berl Nr 2004(21)
Weber A (1909) Theory of the location of industries, English translation by C Friedrich, 1929. University of Chicago Press, Chicago
White R (1974) Sketches of a dynamic central place theory. Econ Geogr 50:219–227. doi:10.2307/142860
Wilson A (1971) A family of spatial interaction models, and associated developments. Environ Plan A 3:1–32. doi:10.1068/a030001
Yang X, Borland J (1991) A microeconomic mechanism for economic growth. J Polit Econ 99:460–482. doi:10.1086/261762
Yasenovskiy V, Hodgson J (2007) Hierarchical location-allocation with spatial choice interaction modeling. Ann Assoc Am Geogr 97:496–511. doi:10.1111/j.1467-8306.2007.00560.x
Young A (1928) Increasing returns and economic progress. Econ J 38:527–542. doi:10.2307/2224097
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Cromley, R.G., Hanink, D.M. Population growth and the development of a central place system. J Geogr Syst 10, 383–405 (2008). https://doi.org/10.1007/s10109-008-0071-7
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10109-008-0071-7