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Dynamic agglomeration patterns in a 2-country NEG model with 4 regions

Author

Listed:
  • Pasquale Commendatore

    (University of Naples ‘Federico II’, Italy)

  • Ingrid Kubin

    (Vienna University of Economics and Business)

  • Pascal Mossay

    (Newcastle University)

  • Iryna Sushko

    (National Academy of Science of Ukraine)

Abstract

We introduce a 2-country New Economic Geography model with 4 regions. It is defined by a 2D piecewise smooth map that depends on 8 parameters. Using reductions of this map to 1D maps defined on invariant straight lines we obtain stability conditions of the Core-Periphery fixed points, and show how such reductions can be used to describe basins of attraction of coexisting attractors. Typical bifurcation sequences obtained when varying some parameters are discussed. We find patterns that are much richer than those observed in standard NEG models: there are more types of fixed points including fixed points attracting in Milnor’s sense; their basins of attraction are quite complicated; and coexistence is pervasive.

Suggested Citation

  • Pasquale Commendatore & Ingrid Kubin & Pascal Mossay & Iryna Sushko, 2015. "Dynamic agglomeration patterns in a 2-country NEG model with 4 regions," Gecomplexity Discussion Paper Series 10, Action IS1104 "The EU in the new complex geography of economic systems: models, tools and policy evaluation", revised Feb 2015.
    • Handle: RePEc:cst:wpaper:10
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    References listed on IDEAS

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    6. Commendatore, Pasquale & Kubin, Ingrid & Petraglia, Carmelo & Sushko, Iryna, 2012. "Economic integration and agglomeration in a customs union in the presence of an outside region," Department of Economics Working Paper Series 146, WU Vienna University of Economics and Business.
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    Cited by:

    1. Fabio Lamantia & Mario Pezzino, 2018. "The dynamic effects of fiscal reforms and tax competition on tax compliance and migration," Review of International Economics, Wiley Blackwell, vol. 26(3), pages 672-690, August.

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    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F2 - International Economics - - International Factor Movements and International Business
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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