Publication: On spatial dynamics
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2010-02
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Wiley-Blackwell
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Abstract
It has long been recognized that the forces that lead to the agglomeration
of economic activity and to aggregate growth are similar. Unfortunately, few formal
frameworks have been advanced to explore this link. We critically discuss the literature
and present a simple framework that can circumvent some of the main obstacles we
identify.We discuss the main characteristics of an equilibrium allocation in this dynamic
spatial framework, present a numerical example to illustrate the forces at work, and
provide some supporting empirical evidence.
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Journal of Regional Science, 2010, v. 50, n. 1, pp. 43-63