Abstract
The purpose of this study is to clarify the mechanism for the formation of hierarchical urban systems. Specifically, we show that relocation costs is a source for the emergence of urban hierarchies. To achieve this purpose, a multi-industrial core-periphery (CP) model is developed by extending a single-industrial CP model of Pflüger1), and by incorporating relocation costs that are heterogeneous across industries. Applying the analytical and numerical approaches provided by Akamatsu et al.2) and Ikeda et al.3), we show that hierarchical industrial location patterns emerge as stable equilibria of the model.
