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An analytical model for the formation of economic clusters

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  • Chincarini, Ludwig
  • Asherie, Neer
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    Abstract

    A simple spatial economy derived from microeconomic foundations is presented to gain insight into the formation of economic clusters. In this model, the formation of economic clusters is a consequence of the competition between economic forces that are consistent with atomistic agents maximizing their utility. An analytic approach is used to obtain the evolution of economic clusters. With this approach, the number of clusters which will grow can be predicted. These results are derived in the traditional one-dimensional geometry and extended to the more realistic two-dimensional landscape.

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    Bibliographic Info

    Article provided by Elsevier in its journal Regional Science and Urban Economics.

    Volume (Year): 38 (2008)
    Issue (Month): 3 (May)
    Pages: 252-270

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    Handle: RePEc:eee:regeco:v:38:y:2008:i:3:p:252-270

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    11. Danny Quah, 2002. "Spatial Agglomeration Dynamics," CEP Discussion Papers dp0521, Centre for Economic Performance, LSE.
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    Cited by:
    1. Brock, William A. & Xepapadeas, Anastasios & Yannacopoulos, Athanasios N., 2014. "Spatial externalities and agglomeration in a competitive industry," Journal of Economic Dynamics and Control, Elsevier, vol. 42(C), pages 143-174.
    2. Brock, William & Xepapadeas, Anastasios, 2008. "General Pattern Formation in Recursive Dynamical Systems Models in Economics," MPRA Paper 12305, University Library of Munich, Germany.
    3. William Brock & Anastasios Xepapadeas & Athanasios Yannacopoulos, . "Adjustment Costs and Long Run Spatial Agglomerations," DEOS Working Papers 1327, Athens University of Economics and Business.
    4. Athanasios Yannacopoulos & Anastasios Xepapadeas & William Brock, . "Optimal Agglomerations in Dynamic Economics," DEOS Working Papers 1217, Athens University of Economics and Business.

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