Dinâmica de localização e aglomeração de conhecimento

Authors

  • Orlando Gomes Instituto Politécnico de Lisboa

Abstract

A simple rule concerning the location of economic activity is considered. Under this rule, one regards that location decisions depend on the presence or the absence of agglomeration economies. Considering a three-location economy, the system that is built leads, under certain conditions, to a saddle-path equilibrium, relatively to which we verify that the most interesting dynamics are associated not with the possibility of convergence to the steady state (the saddlepath),that occurs only under exceptional circumstances, but with the divergence process away from the steady state. To explain the dynamics of the agglomeration economies, a knowledge variable is assumed. Returning to a two location economy one is able to assess in graphical terms the relation between distribution of knowledge and location of economic activities.

Key words: location decisions, dynamic systems, knowledge, technology, agglomeration economies.

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Published

2021-06-16

Issue

Vol. 2 No. 2 (2006): Jul-Dec

Section

Articles

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