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- Economic geography meets hotelling: a home-sweet-home effectPublication . Castro, Sofia B. S. D.; Correia-da-Silva, João; Gaspar, José M.We propose a 2-region core-periphery model where all agents are inter-regionally mobile and have Hotelling-type heterogeneous preferences for location. The utility penalty from residing in a location that is not the preferred one generates the only dispersive force of the model: the home-sweet-home effect. Different distributions of preferences for location induce different spatial distributions in the long-run depending on the short-run general equilibrium economic geography model that is considered. We study the effect of two of those: the linear and the logit home-sweet-home effects.
- Economic geography meets Hotelling: the home-sweet-home effectPublication . Castro, Sofia B. S. D.; Correia-da-Silva, João; Gaspar, José M.We introduce heterogeneous preferences for location in 2-region core-periphery models, thereby generating an additional dispersive force: the home-sweet-home effect. Different forms of heterogeneity in preferences for location induce different long-run spatial distributions of economic activity, depending on the short-run equilibrium model and the distribution of preferences for location that are considered. Our analysis highlights the importance of the convexity/concavity properties of utility from consumption and utility from location, as functions of the spatial distribution of economic activity.
- A prospective review on new economic geographyPublication . Gaspar, José M.This paper serves as an orientation towards the understanding of some of the contributions and theoretical limitations in New Economic Geography and seeks to provide a prospective assessment of new avenues of research along which the field could improve and develop. We identify many of the persistent features and assumptions which have thwarted the evolution of New Economic Geography and led to a sprawl of criticism within the field. This criticism has opened a discussion towards the identification of new possible directions, some of which are being progressively undertaken, while others raise issues that are difficult to overcome both analytically and empirically.
- Agglomeration patterns in a multi-regional economy without income effectsPublication . Gaspar, José M.; Castro, Sofia B. S. D.; Correia-da-Silva, JoãoWe study the long-run spatial distribution of industry using a multi-region core–periphery model with quasi-linear log utility Pflüger (Reg Sci Urban Econ 34:565–573, 2004). We show that a distribution in which industry is evenly dispersed among some of the regions, while the other regions have no industry, cannot be stable. A spatial distribution where industry is evenly distributed among all regions except one can be stable, but only if that region is significantly more industrialized than the other regions. When trade costs decrease, the type of transition from dispersion to agglomeration depends on the fraction of workers that are mobile. If this fraction is low, the transition from dispersion to agglomeration is catastrophic once dispersion becomes unstable. If it is high, there is a discontinuous jump to partial agglomeration in one region and then a smooth transition until full agglomeration. Finally, we find that mobile workers benefit from more agglomerated spatial distributions, whereas immobile workers prefer more dispersed distributions. The economy as a whole shows a tendency towards overagglomeration for intermediate levels of trade costs.
- Economic geography meets Hotelling: a home-sweet-home effectPublication . Gaspar, José; Castro, Sofia B.S.D.; Correia-da-Silva, João
- Erratum to: Bridging the gap between economic modelling and simulation: a simple dynamic aggregate demand-aggregate supply model with matlab (Journal of Applied Mathematics (2018) 2018 (3193068) DOI: 10.1155/2018/3193068)Publication . Gaspar, José M.In the article titled "Bridging the Gap between Economic Modelling and Simulation: A Simple Dynamic Aggregate Demand-Aggregate Supply Model with Matlab" [1], an incomplete version of the SupplementaryMaterials was published. Also, there was a typographical error in the numerical evaluation section, where the word "supplemantary" should be corrected to "supplementary." This occurred due to production errors. The complete updated version of the Supplementary Materials is available here. Supplementary Materials The Matlab code is embedded in a single function (ADASdynamic. m). Add the ".m" file to the working Matlab path/directory. Open Matlab and run the name of the file in the command window (ADASdynamic). The programme asks the user to introduce values for the parameters described throughout the paper, including the initial time and final time. It then produces three figures: one is for the solution y(t), another is for both πe(t) and π(t), and the last one shows the phase diagram portraying the transition dynamics. The programme will then ask the user to implement either monetary, fiscal, supply side shocks, or any possible combination of shocks, by introducing new values for the money growth rate, public spending, tax rate, and level of natural output. This will produce three new graphs, with the same information as described previously, but compared to the initial situation. Therefore, the figures shown after implementing shocks will portray the global transition dynamics towards the new equilibrium. Along these processes, the output for the relevant steady-state levels and their qualitative properties are shown in Matlab's command window, along with the parameter values. See Appendix B for an example of how the output is displayed inMatlab's command window. (Supplementary Materials).
- Global bifurcation mechanism and local stability of identical and equidistant regions: application to three regions and morePublication . Gaspar, José M.; Ikeda, Kiyohiro; Onda, MikihasaWe provide an analytical description of possible spatial patterns in economic geography models with three identical and equidistant regions by adapting results from General Bifurcation mechanism. We then use Pflüger's (2004, Reg Sci Urb Econ) model to show analytically how such spatial patterns can be uncovered. As the freeness of trade increases, a uniform distribution undergoes a direct bifurcation that leads to either (1) a state with two identical small regions and one large region or (2) a state with two identical large regions and one small region. The former state leads to the agglomeration in a single region. The latter leads to a state with two evenly populated regions and one region with no industry, which further undergoes a secondary bifurcation, en route to a partial agglomeration with one small region and one large region. The stability of these states is investigated. We show that an asymmetric equilibrium such that all regions have different positive industry sizes cannot be connected with other types of equilibria. Therefore, an initially asymmetric state will remain so and preserve the ordering between region sizes. For the n-region model, we show that an equilibrium with more than three groups of identical regions cannot be reached from an interior state, thus precluding any completely asymmetric state with industry in all regions. We also provide insights on other economic geography models with three regions.
- Paul Krugman: contributions to Geography and TradePublication . Gaspar, José M.This work consists of a survey of the academic work of Paul Robin Krugman. It seeks to shed light on his main contributions to economic theory, mainly those for which he was awarded the Nobel Prize in Economics in 2008. His legacy in academia can be assessed through the recognition of his work on the identification of international trade patterns and the explanation on why spatial imbalances in the distribution of economic activities arise in an increasingly globalized economy. Through these contributions to trade theory and economic geography, Krugman is often credited as being one of the pioneering researchers in the New Trade Theory and the founding father (together with Masahisa Fujita) of the New Economic Geography.
- Métodos quantitativos aplicados à gestão – Regressão linearPublication . Silva, Conceição A.; Gaspar, José Maria; Correia, Maria Helena
- Global bifurcation mechanism and local stability of identical and equidistant regionsPublication . Gaspar, José; Ikeda, Kiyohiro; Onda, MikihasaWe provide an analytical description of possible spatial patterns in economic geography models with three identical and equidistant regions by applying results from General Bifurcation mechanisms. We then use Pflüger’s (2004, Reg Sci Urb Econ) model to show what spatial patterns can be uncovered analytically. As the freeness of trade increases, a uniform distribution undergoes a direct bifurcation that leads to a state with two identical large regions and one small region. Before this bifurcation, the model encounters a minimum point above which a curve of dual equilibria with two small identical regions and one small region emerges. From further bifurcations, the equilibrium with one large region encounters agglomeration in a single region, while the equilibrium with one small region encounters a state with two evenly populated regions and one empty region. A secondary bifurcation then leads to partial agglomeration with one small region and one large region. We show that an asymmetric equilibrium with populated regions cannot be connected with other types of equilibria. Therefore, an initially asymmetric state will remain so and preserve the ordering between region sizes.