| Author Name | MORI Tomoya (Faculty Fellow, RIETI) |
|---|---|
| Creation Date/NO. | November 2025 25-P-018 |
| Research Project | Sustainability of Cities and Regions in Japan under Population Decline |
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Abstract
Building on Story 3, which demonstrated how cities emerge as population agglomerations in a regional economy with industries exhibiting varying returns to scale—resulting in city size disparities and the emergence of nested core-periphery structures—this paper (Story 4) assumes that the returns to scale across industries follow empirical distributions. We show, in a theoretical model, how such nested structures can reproduce self-similar patterns consistent with the power-law distribution observed in city populations.
