Local Trade Networks and Spatially Persistent Unemployment

Nienke Oomes ()

International Trade from University Library of Munich, Germany

Abstract: This paper studies the effect of local trade networks on the spatial distribution of employment in a Cooper and John (1988) type model with effective demand externalities. It is shown that, if labor can be hired in continuous quantities, then the long run spatial distribution of employment is uniform, and independent of any trade network topology. When labor has binary support, however, local trade networks are shown to generate spatial unemployment clusters which can persist indefinitely.

Keywords: trade; networks; unemployment; local; interactions; cellular; automata (search for similar items in EconPapers)
JEL-codes: C63 C73 E24 F16 (search for similar items in EconPapers)
Pages: 63 pages
Date: 2002-11-19
Note: Type of Document - pdf; prepared on Macintosh; to print on HP/PostScript; pages: 63 ; figures: included
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Related works:
Journal Article: Local trade networks and spatially persistent unemployment (2003)
Journal Article: Local trade networks and spatially persistent unemployment (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpit:0211004

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