Spatial dynamics and convergence: the spatial AK model
AbstractWe study the optimal dynamics of an AK economy where population is uniformly distributed along the unit circle. Locations only differ in initial capital endowments. Despite constant returns to capital, we prove that transition dynamics will set in. In particular, we prove that the spatio-temporal dynamics, induced by the willingness of the planner to give the same (detrended) consumption over space and time, lead to convergence in the level of capital across locations in the long-run.
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Bibliographic InfoPaper provided by Business School - Economics, University of Glasgow in its series Working Papers with number 2010_06.
Date of creation: Mar 2010
Date of revision:
Economic Growth; Inequality; Spatial Dynamics; Convergence;
Other versions of this item:
- Raouf BOUCEKKINE & Carmen CAMACHO & Giorgio FABBRI, 2010. "Spatial dynamics and convergence: the spatial AK model," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2010009, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- C60 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - General
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
- R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-04-17 (All new papers)
- NEP-DGE-2010-04-17 (Dynamic General Equilibrium)
- NEP-GEO-2010-04-17 (Economic Geography)
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.:
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- Carmen Camacho & Agustín Pérez-Barahona, 2012.
"Land use dynamics and the environment,"
UniversitÃ© Paris1 PanthÃ©on-Sorbonne (Post-Print and Working Papers)
- Carmen Camacho & Agustín Pérez-Barahona, 2012. "Land use dynamics and the environment," Documents de travail du Centre d'Economie de la Sorbonne 12012, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
- Raouf Boucekkine & Giorgio Fabbri & Patrick-Antoine Pintus, 2011. "On the optimal control of a linear neutral differential equation arising in economics," Working Papers halshs-00576770, HAL.
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