Bifurcation theory of a square lattice economy: Racetrack economy analogy in an economic geography model

Ikeda, Kiyohrio and Onda, Mikihisa and Takayama, Yuki (2017): Bifurcation theory of a square lattice economy: Racetrack economy analogy in an economic geography model.

Abstract

Bifurcation theory for an economic agglomeration in a square lattice economy is presented in comparison with that in a racetrack economy. The existence of a series of equilibria with characteristic agglomeration patterns is elucidated. A spatial period doubling bifurcation cascade between these equilibria is advanced as a common mechanism to engender fewer and larger agglomerations in both economies. Analytical formulas for a break point, at which the uniformity is broken under reduced transport costs, are proposed for an economic geography model by synthetically encompassing both economies.

• Item Type: MPRA Paper
• Language: English
• Keywords: Bifurcation, Economic geography model, Group theory, Replicator dynamics, Spatial period doubling
• Subjects: C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C19 - Other

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