Host: The City Planning Institute of Japan
The purpose of this paper is to explore bifurcation patterns of equilibrium population in a core-periphery model with multiple industries in the framework of new economic geography.We extend the Forslid and Ottaviano(2003) model with a single industry to a multi industry model in which each labor chooses both cities and industries. We reveal that specialization for industry with small elasticity of substitution occurs in the largest city and specialization for industry with large elasticity of substitution occurs in the other cities.