Yosuke Kogure | Searcharxiv

arXiv2026

Parameter Sensitivity Analysis of Hierarchical Spatial Economy: Trade Strategy around Brexit

This paper presents a systematic framework for analyzing the economic parameter sensitivity of a hierarchical spatial economy within economic geography models. Through the hierarchical reduction approach proposed in this study, the original region-level governing equation is condensed into country-level and alliance-level equations. Based on the reduced governing equation, we formulate the sensitivity of economic variables on each country's population. This approach is applied to the analysis of international trade competition -- covering both trade liberalization and protectionism around Brexit -- among the UK, France, and Germany. We find that both the UK and the EU should focus on reducing domestic transportation costs, whereas tariffs and retaliatory tariffs act as a double-edged sword that can either strengthen or weaken their trade positions.

econ.GN↗

arXiv2020

Most likely retail agglomeration patterns: Potential maximization and stochastic stability of spatial equilibria

We study a model of retail agglomeration where consumers are more likely to visit zones with a higher concentration of shops. This agglomerative effect makes zones with many retailers more attractive. The spatial distribution of retailers in equilibrium is endogenously determined in response to the spatial pattern of shopping demand. In such a setting, multiple locally stable equilibria may arise, and the outcome can depend on the initial distribution of shops. To address this issue, we apply an approach from evolutionary game theory, selecting the equilibrium that maximizes a potential function representing the incentives of retailers. We demonstrate the method in a two-dimensional spatial setting. Compared to local stability based on gradual, myopic adjustments, this global maximization leads to a unique and more robust prediction. As expected, the number of retail clusters decreases either when shopping costs for immobile consumers fall or when the attractiveness of larger retail concentrations increases.

econ.TH↗