| Authors |
Brock, W. and Xepapadeas, A. |
| Title |
The Emergence of Optimal Agglomeration in Dynamic Economics |
| Abstract |
We analyze endogenous pattern formation resulting from forward-looking
optimizing behavior of economic agents in the presence of spatial spillovers
modelled by continuous kernels. We use Fourier methods to identify nec-
essary and su�¢ cient conditions for the emergence of optimal agglomeration
through an optimal spillover induced instability of a spatially homogeneous
steady state. We apply our methods to study the emergence of optimal ag-
glomeration for a rational expectations equilibrium and an optimal growth
model. We believe that our analytical methods can be used to systematically
study optimal agglomeration and clustering in dynamic economics. |
| File |
Working-Paper_VersionBX_Rev1_(16October09).pdf (359244 bytes) |
| File-Function |
First version |
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Copyright © 2009 [D.I.E.S.S. A.U.E.B.]. All rights reserved.
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