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Bifurcation theory of a square lattice economy: Racetrack economy analogy in an economic geography model

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Listed:
  • Ikeda, Kiyohrio
  • Onda, Mikihisa
  • Takayama, Yuki

Abstract

Bifurcation theory for an economic agglomeration in a square lattice economy is presented in comparison with that in a racetrack economy. The existence of a series of equilibria with characteristic agglomeration patterns is elucidated. A spatial period doubling bifurcation cascade between these equilibria is advanced as a common mechanism to engender fewer and larger agglomerations in both economies. Analytical formulas for a break point, at which the uniformity is broken under reduced transport costs, are proposed for an economic geography model by synthetically encompassing both economies.

Suggested Citation

  • Ikeda, Kiyohrio & Onda, Mikihisa & Takayama, Yuki, 2017. "Bifurcation theory of a square lattice economy: Racetrack economy analogy in an economic geography model," MPRA Paper 78120, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:78120
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    File URL: https://mpra.ub.uni-muenchen.de/78120/1/MPRA_paper_78120.pdf
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    References listed on IDEAS

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    1. Kiyohiro Ikeda & Mikihisa Onda & Yuki Takayama, 2019. "Bifurcation Theory of a Racetrack Economy in a Spatial Economy Model," Networks and Spatial Economics, Springer, vol. 19(1), pages 57-82, March.

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    More about this item

    Keywords

    Bifurcation; Economic geography model; Group theory; Replicator dynamics; Spatial period doubling;
    All these keywords.

    JEL classification:

    • C19 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Other

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