SPATIAL STABILITY

Pascal Mossay
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Pascal Mossay: Universidad de Alicante

Working Papers. Serie AD from Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie)

Abstract: We consider a continuous spatial economy consisting of pure exchange local economies. Agents are allowed to change their location over time as a response to spatial utility differentials. These spatial adjustments toward higher utility neighborhoods lead the spatial economy to converge to a spatially uniform allocation of resources, provided that the matrix of price effects is quasi-negative definite. Furthermore our model provides a real time interpretation of the tâtonnement story. Also, spatial fluctuations are shown to be damped at different rates according to their spatial scale.

Keywords: local markets; migration; spatial economy; convergence; stability; tâtonnement; normal modes. (search for similar items in EconPapers)
JEL-codes: C60 D51 R23 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2004-12
New Economics Papers: this item is included in nep-geo, nep-upt and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:ivi:wpasad:2004-47

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