| Authors |
Brock, W., Xepapadeas, A. and Yannacopoulos, A. |
| Title |
Adjustment Costs and Long Run Spatial Agglomerations |
| Abstract |
We introduce knowledge spillovers as an externality in the production
function of competitive ��firms operating in a ��nite spatial domain under adjustment costs. Spillovers are spatial as productive knowledge ��flows more easily among firms located nearby. When knowledge spillovers are not internalized by ��firms spatial agglomerations may emerge endogenously in a competitive equilibrium, however, they do not emerge at the steady state of the social optimum. |
| Keywords |
Investment theory, adjustment costs, spatial agglomerations |
| Classification JEL |
D21, R3, C61 |
| File |
Adjustment.Costs.and.Long.Run.Spatial.Agglomerations.pdf (234778 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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