Munich Personal RePEc Archive

History versus Expectations in Economic Geography Reconsidered

Oyama, Daisuke (2006): History versus Expectations in Economic Geography Reconsidered.

This is the latest version of this item.

[img]
Preview
PDF
MPRA_paper_9287.pdf

Download (311kB) | Preview

Abstract

This paper studies global stability of spatial configurations in a dynamic two-region model with quadratic adjustment costs where rational migrants make migration decisions so as to maximize their discounted future utilities. A global analysis is conducted to show that, except for knife-edge cases with symmetric regions, there exists a unique spatial configuration that is absorbing and globally accessible whenever the degree of friction is sufficiently small, and such a configuration is characterized as the unique maximizer of the potential function of the underlying static model.

Available Versions of this Item

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.