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An analytical model for the formation of economic clusters

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  • Chincarini, Ludwig
  • Asherie, Neer

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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  • Chincarini, Ludwig & Asherie, Neer, 2008. "An analytical model for the formation of economic clusters," Regional Science and Urban Economics, Elsevier, vol. 38(3), pages 252-270, May.
    • Handle: RePEc:eee:regeco:v:38:y:2008:i:3:p:252-270
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    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. William Brock & Anastasios Xepapadeas, 2020. "Spatial Environmental and Resource Economics," DEOS Working Papers 2002, Athens University of Economics and Business.
    3. Zakaria Babutsidze & Robin Cowan, 2014. "Showing or telling? Local interaction and organization of behavior," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 9(2), pages 151-181, October.
    4. Brock, William A. & Xepapadeas, Anastasios & Yannacopoulos, Athanasios N., 2014. "Optimal agglomerations in dynamic economics," Journal of Mathematical Economics, Elsevier, vol. 53(C), pages 1-15.
    5. Shamis, V. A. & Kulikova, O. M. & Neiman, S. Y. & Usacheva, E. V., 2017. "Agent modeling of advertising impact on the regional economic cluster lifecycle," R-Economy, Ural Federal University, Graduate School of Economics and Management, vol. 3(4), pages 203-212.
    6. William Brock & Anastasios Xepapadeas & Athanasios Yannacopoulos, 2013. "Adjustment Costs and Long Run Spatial Agglomerations," Working Papers 2013.68, Fondazione Eni Enrico Mattei.
    7. Brock, William & Xepapadeas, Anastasios, 2008. "General Pattern Formation in Recursive Dynamical Systems Models in Economics," MPRA Paper 12305, University Library of Munich, Germany.
    8. Emmanuelle Augeraud-Véron & Arnaud Ducrot, 2019. "Spatial externality and indeterminacy," Post-Print hal-02306568, HAL.
    9. Kensuke Ohtake, 2023. "A Continuous Space Model of New Economic Geography with a Quasi-Linear Log Utility Function," Networks and Spatial Economics, Springer, vol. 23(4), pages 905-930, December.
    10. Boush, G. D. & Kulikova, О. М. & Shelkov, I. К., 2016. "Agent modelling of cluster formation processes in regional economic systems," R-Economy, Ural Federal University, Graduate School of Economics and Management, vol. 2(1), pages 89-101.
    11. Galina Boush & Okxana Kulikova & Ivan Shelkov, 2016. "Agent Modelling of Cluster Formation Processes in Regional Economic Systems (p. 64-77)," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(1), pages 64-77.

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