Bifurcation theory of a racetrack economy in a spatial economy model
Mikihisa Onda and
Yuki Takayama ()
MPRA Paper from University Library of Munich, Germany
Racetrack economy is a conventional spatial platform for economic agglomeration in spatial economy models. Studies of this economy up to now have been conducted mostly on $2^k$ cities, for which agglomerations proceed via so-called spatial period doubling bifurcation cascade. This paper aims at the elucidation of agglomeration mechanisms of the racetrack economy in a general setting of an arbitrary number of cities. First, an attention was paid to the existence of invariant solutions that retain their spatial distributions when the transport cost parameter is changed. A complete list of possible invariant solutions, which are inherent for replicator dynamics and are dependent on the number of cities, is presented. Next, group-theoretic bifurcation theory is used to describe bifurcation from the uniform state, thereby presenting an insightful information on spatial agglomerations. Among a plethora of theoretically possible invariant solutions, those which actually become stable for spatial economy models are obtained numerically. Asymptotic agglomeration behavior when the number of cities become very large is studied.
Keywords: Bifurcation; Economic agglomeration; Racetrack economy; Replicator dynamics; Spatial economy model (search for similar items in EconPapers)
JEL-codes: R12 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-geo and nep-ure
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Journal Article: Bifurcation Theory of a Racetrack Economy in a Spatial Economy Model (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:86923
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