The Footloose Entrepreneur model with a finite number of equidistant regions

• Type: Article in International Scientific Journal
• Date: 2020

Authors

Gaspar, JM (Author) Other; Castro, SBSD (Author) FEP; João Correia-da-Silva (Author) FEP

Journal

Title: International Journal of Economic Theory

Vol. 16 No. 4

Pages: 420-446

ISSN: 1742-7355

Publisher: Wiley-Blackwell

Indexing

ISI Web of Knowledge - 5 Citations

Scopus - 7 Citations

Other information

Authenticus ID: P-00Q-E0B

DOI: 10.1111/ijet.12215

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