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On Spatial dynamics

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Author Info

  • Klaus Desmet

    ()
    (Universidad Carlos III de Madrid and CEPR)

  • Esteban Rossi-Hansberg

    ()
    (Princeton University)

Abstract

It has long been recognized that the forces that lead to the agglomeration of economic activity and to aggregate growth are similar. Unfortunately, few formal frameworks have been advanced to explore this link. We critically discuss the literature and present a simple framework that can circumvent some of the main obstacles we identify. We discuss the main characteristics of an equilibrium allocation in this dynamic spatial framework, present a numerical example to illustrate the forces at work, and provide some supporting empirical evidence.

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Bibliographic Info

Paper provided by Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales in its series Working Papers with number 2009-16.

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Date of creation: 16 Dec 2009
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Publication status: Published in Journal of Regional Science 50(1), February 2010: 43-63
Handle: RePEc:imd:wpaper:wp2009-16

Note: This paper is included in the IMDEA Social Sciences Working Paper Series through the PROCIUDAD-CM Programme
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Related research

Keywords: dynamic spatial models; technology diffusion; spillovers; trade; factor mobility; growth;

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Cited by:
  1. Paulo Brito, 2012. "Global Endogenous Growth and Distributional Dynamics," DEGIT Conference Papers c017_053, DEGIT, Dynamics, Economic Growth, and International Trade.
  2. Holger Breinlich & Gianmarco I.P. Ottaviano & Jonathan R.W. Temple, 2013. "Regional growth and regional decline," Economics Discussion Papers 729, University of Essex, Department of Economics.
  3. Raouf Boucekkine & Carmen Camacho & Giorgio Fabbri, 2013. "Spatial dynamics and convergence: The spatial AK model," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00827641, HAL.
  4. William Brock & Anastasios Xepapadeas & Athanasios Yannacopoulos, 2014. "Optimal Control in Space and Time and the Management of Environmental Resources," DEOS Working Papers 1402, Athens University of Economics and Business.
  5. Carmen Camacho & Agustín Pérez-Barahona, 2012. "Land use dynamics and the environment," Post-Print halshs-00674020, HAL.
  6. Henry G. Overman, 2010. ""Gis A Job": What Use Geographical Information Systems In Spatial Economics?," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 165-180.
  7. Gani Aldashev & Serik Aldashev & Timoteo Carletti, 2014. "On Convergence in the Spatial AK Growth Models," Papers 1401.4887, arXiv.org.
  8. Carmen Camacho & Agustín Pérez-Barahona, 2012. "Land use dynamics and the environment," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00674020, HAL.
  9. Chen, Yong & Irwin, Elena G. & Jayaprakash, Ciriyam, 2011. "Incorporating Spatial Complexity into Economic Models of Land Markets and Land Use Change," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 40(3), December.
  10. Elena G. Irwin & Andrew M. Isserman & Maureen Kilkenny & Mark D. Partridge, 2010. "A Century of Research on Rural Development and Regional Issues," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(2), pages 522-553.

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