Adjustment Costs and Long Run Spatial Agglomerations
AbstractWe introduce knowledge spillovers as an externality in the production function of competitive Ãƒï¿½Ã¯Â¿Â½firms operating in a Ãƒï¿½Ã¯Â¿Â½nite spatial domain under adjustment costs. Spillovers are spatial as productive knowledge Ãƒï¿½Ã¯Â¿Â½flows more easily among firms located nearby. When knowledge spillovers are not internalized by Ãƒï¿½Ã¯Â¿Â½firms spatial agglomerations may emerge endogenously in a competitive equilibrium, however, they do not emerge at the steady state of the social optimum.
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Bibliographic InfoPaper provided by Athens University of Economics and Business in its series DEOS Working Papers with number 1327.
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Investment theory; adjustment costs; spatial agglomerations;
Other versions of this item:
- William Brock & Anastasios Xepapadeas & Athanasios Yannacopoulos, 2013. "Adjustment Costs and Long Run Spatial Agglomerations," Working Papers, Fondazione Eni Enrico Mattei 2013.68, Fondazione Eni Enrico Mattei.
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Athanasios Yannacopoulos & Anastasios Xepapadeas & William Brock, .
"Optimal Agglomerations in Dynamic Economics,"
DEOS Working Papers
1217, Athens University of Economics and Business.
- William A. Brock & Anastasios Xepapadeas & Athanasios N. Yannacopoulos, 2012. "Optimal Agglomerations in Dynamic Economics," Working Papers, Fondazione Eni Enrico Mattei 2012.64, Fondazione Eni Enrico Mattei.
- William Brock & Anastasios Xepapadeas & Athanasios Yannacopoulos, 2014. "Optimal Agglomerations in Dynamic Economics," DEOS Working Papers 1403, Athens University of Economics and Business.
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- Robert E. Lucas & Jr., 1967. "Adjustment Costs and the Theory of Supply," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 75, pages 321.
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