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Spatial Agglomeration Dynamics

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Author Info
Quah, Danny

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Abstract

This Paper develops a model of economic growth and activity locating endogenously on a 3-dimensional featureless global geography. The same economic forces influence simultaneously growth, convergence, and spatial agglomeration and clustering. Economic activity is not concentrated on discrete isolated points but instead a dynamically-fluctuating, smooth spatial distribution. Spatial inequality is a Cass-Koopmans saddlepath, and the global distribution of economic activity converges towards egalitarian growth. Equality is stable but spatial inequality is needed to attain it.

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Publisher Info
Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 3208.

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Date of creation: Feb 2002
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Handle: RePEc:cpr:ceprdp:3208

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Related research
Keywords: cluster; continuous space; convergence; distribution dynamics; globalization; growth; Knowledge; saddlepath dynamics; spatial inequality; spatial spillovers;

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Find related papers by JEL classification:
D30 - Microeconomics - - Distribution - - - General
O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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References listed on IDEAS
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.:
  1. James Feyrer, 2008. "Convergence by Parts," Contributions to Macroeconomics, Berkeley Electronic Press, vol. 8(1), pages 1646-1646. [Downloadable!] (restricted)
  2. Dilip Mookherjee & Debraj Ray, 2002. "Is Equality Stable?," American Economic Review, American Economic Association, vol. 92(2), pages 253-259, May. [Downloadable!]
    Other versions:
  3. Jan Eeckhout & Boyan Jovanovic, 2002. "Knowledge Spillovers and Inequality," American Economic Review, American Economic Association, vol. 92(5), pages 1290-1307, December. [Downloadable!]
  4. Kiminori Matsuyama, 2002. "Explaining Diversity: Symmetry-Breaking in Complementarity Games," Discussion Papers 1336, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
    Other versions:
  5. Bernard, Andrew B & Jones, Charles I, 1996. "Comparing Apples to Oranges: Productivity Convergence and Measurement across Industries and Countries," American Economic Review, American Economic Association, vol. 86(5), pages 1216-38, December. [Downloadable!] (restricted)
  6. Stephen Redding & James Proudman, . "Productivity convergence and international openness," Bank of England working papers 77, Bank of England. [Downloadable!]
  7. Krugman, Paul & Venables, Anthony J., 1995. "The Seamless World: A Spatial Model of International Specialization," CEPR Discussion Papers 1230, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  8. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July. [Downloadable!] (restricted)
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Cited by:
(explanations, 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.)

  1. XEPAPADEAS, Anastasios, 2009. "Modeling Complex Systems," MPRA Paper 17498, University Library of Munich, Germany. [Downloadable!]
  2. Danilo Igliori, 2008. "Deforestation, Growth and Agglomeration Effects: Evidence from Agriculture in the Brazilian Amazon," Environmental Economy and Policy Research Working Papers 29.2008, University of Cambridge, Department of Land Economics, revised 2008. [Downloadable!]
    Other versions:
  3. Klaus Desmet & Esteban Rossi-Hansberg, 2009. "Spatial Development," NBER Working Papers 15349, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Dafna Schwartz & Raphael Bar-El, 2006. "Venture Investments in Israel - A Regional Perspective Dafna Schwartz and Raphael Bar-El Ben-Gurion University, School of Management, Israel," ERSA conference papers ersa06p868, European Regional Science Association. [Downloadable!]
  5. Miranowski, John & Monchuck, Daniel C., 2004. "Spatial Labor Markets and Technology Spillovers - Analysis from the US Midwest," Staff General Research Papers 12196, Iowa State University, Department of Economics. [Downloadable!]
  6. Keller, Wolfgang & Shiue, Carol Hua, 2003. "The Origins of Spatial Interaction," CEPR Discussion Papers 4138, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  7. Baldwin, Richard & Martin, Philippe, 2003. "Agglomeration and Regional Growth," CEPR Discussion Papers 3960, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  8. Orlando Gomes, 2004. "Location Dynamics and Knowledge Agglomeration," Urban/Regional 0409012, EconWPA. [Downloadable!]
  9. Anastasios Xepapadeas & William Brock, 2009. "General Pattern Formation in Recursive Dynamical Systems Models in Economics," Working Papers 2009.49, Fondazione Eni Enrico Mattei. [Downloadable!]
    Other versions:
  10. Matthias Cinyabuguma & Virginia McConnell, 2009. "Urban Growth Externalities and Neighborhood Incentives: Another Cause of Urban Sprawl?," UMBC Economics Department Working Papers 09-106, UMBC Department of Economics. [Downloadable!]
  11. Gomes, Orlando, 2006. "Space, growth and technology: an integrated dynamic approach," MPRA Paper 2846, University Library of Munich, Germany. [Downloadable!]
    Other versions:
  12. Luca, Spinesi, 2005. "Vertical and Horizontal Innovation : Effects of Globalization and Migration on Inequality, Growth and Human Capital Accumulation," Discussion Papers (ECON - Département des Sciences Economiques) 2005028, Université catholique de Louvain, Département des Sciences Economiques. [Downloadable!]
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