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Spatial Discounting, Fourier, and Racetrack Economy: A Recipe for the Analysis of Spatial Agglomeration Models

  • Akamatsu, Takashi
  • Takayama, Yuki
  • Ikeda, Kiyohiro

We provide an analytical approach that facilitates understanding the bifurcation mechanism of a wide class of economic models involving spatial agglomeration of economic activities. The proposed method overcomes the limitations of the Turing (1952) approach that has been used to analyze the emergence of agglomeration in the multi-regional core-periphery (CP) model of Krugman (1993, 1996). In other words, the proposed method allows us to examine whether agglomeration of mobile factors emerges from a uniform distribution and to analytically trace the evolution of spatial agglomeration patterns (i.e., bifurcations from various polycentric patterns as well as a uniform pattern) that these models exhibit when the values of some structural parameters change steadily. Applying the proposed method to the multi-regional CP model, we uncover a number of previously unknown properties of the CP model, and notably, the occurrence of “spatial period doubling bifurcation” in the CP model is proved.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 21738.

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Date of creation: 18 Aug 2009
Date of revision: 25 Dec 2009
Handle: RePEc:pra:mprapa:21738
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