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The Footloose Entrepreneur Model with 3 Regions

José Gaspar (), Sofia Balbina Santos Dias de Castro () and Joao Correia-da-Silva ()
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Sofia Balbina Santos Dias de Castro: CMUP e Faculdade de Economia, Universidade do Porto

FEP Working Papers from Universidade do Porto, Faculdade de Economia do Porto

Abstract: We study a 3-region version of the Footloose Entrepreneur model by Forslid and Ottaviano (J Econ Geogr, 2003). We focus on the analysis of stability of three types of long-run equilibria: agglomeration, dispersion and partial dispersion. We find that the 3-region model exhibits more tendency for agglomeration and less tendency for dispersion than the 2-region model. We show numerical evidence suggesting that equilibria with partial dispersion are always unstable. We also discuss the existence and robustness of bifurcations in the 3-region model.

Keywords: Core-Periphery; Footloose Entrepreneur; Three Regions (search for similar items in EconPapers)
JEL-codes: R10 R12 R23 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2013-07
New Economics Papers: this item is included in nep-geo and nep-ure
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