The structure of simple 'New Economic Geography' models (or, On identical twins)

Détails

ID Serval
serval:BIB_8CDEF8DCAA9B
Type
Article: article d'un périodique ou d'un magazine.
Collection
Publications
Titre
The structure of simple 'New Economic Geography' models (or, On identical twins)
Périodique
Journal of Economic Geography
Auteur(s)
Robert-Nicoud F.
ISSN
1468-2702
Statut éditorial
Publié
Date de publication
04/2005
Peer-reviewed
Oui
Volume
5
Numéro
2
Pages
201-234
Langue
anglais
Résumé
This paper shows that the mathematical structure of the most widely used New Economic Geography models is identical, irrespective of the underlying agglomeration mechanism assumed (factor migration, input-output linkages, endogenous capital accumulation). This enables us to provide analytical proofs to four important and related results in the field. First, standard models display at most two interior steady states beyond the symmetric one. Second, when interior, asymmetric steady-states exist they are unstable. Third, location displays hysteresis. Finally, with forward looking agents a shock to expectations might trigger an equilibrium switch. This paper also stresses the empirical implications of the most important results derived in this study.
Mots-clé
New Economic Geography, Natural state space, Number of steady-states, Stability, Hysteresis, Expectations
Web of science
Création de la notice
27/10/2016 11:48
Dernière modification de la notice
20/08/2019 15:51
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