Spatial Agglomeration Dynamics
AbstractThis 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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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 3208.
Date of creation: Feb 2002
Date of revision:
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Other versions of this item:
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-03-14 (All new papers)
- NEP-DEV-2003-03-14 (Development)
- NEP-GEO-2003-03-14 (Economic Geography)
- NEP-URE-2003-03-14 (Urban & Real Estate Economics)
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