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Advisor(s)
Abstract(s)
We 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.
Description
Keywords
Bifurcation Economic geography Multi-regional economy Footloose entrepreneur
Citation
Gaspar, J., Ikeda, K., Onda, M. (2019). Global bifurcation mechanism and local stability of identical and equidistant regions. Working papers: Economics. N.º 4, 32 p.