 Bridging the Gap between Growth Theory and the New Economic Geography: the Spatial Ramsey ModelRaouf Boucekkine (), Carmen Camacho and Benteng Zou Post-Print from HAL Abstract: We study a Ramsey problem in infinite and continuous time and space. The problem is discounted both temporally and spatially. Capital flows to locations with higher marginal return. We show that the problem amounts to optimal control of parabolic partial differential equations (PDEs). We rely on the existing related mathematical literature to derive the Pontryagin conditions. Using explicit representations of the solutions to the PDEs, we first show that the resulting dynamic system gives rise to an ill-posed problem in the sense of Hadamard. We then turn to the spatial Ramsey problem with linear utility. The obtained properties are significantly different from those of the nonspatial linear Ramsey model due to the spatial dynamics induced by capital mobility. Date: 2009-02 Published in Macroeconomic Dynamics, 2009, 13 (1), pp.20-45. ⟨10.1017/S1365100508070442⟩ There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00683809 DOI: 10.1017/S1365100508070442 Access Statistics for this paper More papers in Post-Print from HAL |
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