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The Footloose Entrepreneur model with a finite number of equidistant regions

Title
The Footloose Entrepreneur model with a finite number of equidistant regions
Type
Article in International Scientific Journal
Year
2020
Authors
Gaspar, JM
(Author)
Other
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Castro, SBSD
(Author)
FEP
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Journal
Vol. 16 No. 4
Pages: 420-446
ISSN: 1742-7355
Publisher: Wiley-Blackwell
Other information
Authenticus ID: P-00Q-E0B
Abstract (EN): We study the Footloose Entrepreneur model with a finite number of equidistant regions, focusing on the analysis of stability of agglomeration, total dispersion, and boundary dispersion. As the number of regions increases, there is more tendency for agglomeration and less tendency for dispersion. As it tends to infinity, agglomeration always becomes stable while dispersion always becomes unstable. These results are robust to any composition of the global workforce and its dependence on the number of regions. Numerical evidence suggests that boundary dispersion is never stable. We introduce exogenous regional heterogeneity and obtain a general condition for stability of agglomeration. © IAET
Language: English
Type (Professor's evaluation): Scientific
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