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On the Existence of Spatial Equilibrium and Generalized Fixed Point Theorems

Author

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  • Marakulin, V.

    (Novosibirsk State University, Novosibirsk, Russia
    Sobolev Institute of Mathematics, Russian Academy of Sciences, Novosibirsk, Russia)

Abstract

The problem of immigration-proof division into countries of a finite-dimensional area is studied. This is a kind of Tiebout equilibrium, in which the principle of migration consistency assumes that the border residents do not have incentives for the change of jurisdiction, i.e., at the point of their location costs of citizens for border countries are equal. It is assumed that a measurable population density is given and it is required that the cross-country boundary be represented by a continuous surface (curve). The proof of the existence of required division is based on the reducing of the problem to the searching of a fixed point. However, the conditions of classical theorems on fixed points of Brouwer-Kakutani or the "conical" Krasnoselskii's theorem are violated. This led us to the development of their generalization to the case of a mapping, possibly acting outside the domain. It is proved that a continuous mapping defined on a convex compact has a fixed point if it satisfies one of two boundary conditions: "compression" or "expansion". This result also is extended to point-to-set "Kakutani maps": applying it, we prove the existence of an immigration-consistent division into countries of any compact finite-dimensional area in very general setting..

Suggested Citation

  • Marakulin, V., 2019. "On the Existence of Spatial Equilibrium and Generalized Fixed Point Theorems," Journal of the New Economic Association, New Economic Association, vol. 42(2), pages 12-34.
  • Handle: RePEc:nea:journl:y:2019:i:42:p:12-34
    DOI: 10.31737/2221-2264-2019-42-2-1
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    References listed on IDEAS

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    1. Alberto Alesina & Enrico Spolaore, 1997. "On the Number and Size of Nations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1027-1056.
    2. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64(5), pages 416-416.
    3. Musatov, Daniil & Savvateev, Alexei & Weber, Shlomo, 2016. "Gale–Nikaido–Debreu and Milgrom–Shannon: Communal interactions with endogenous community structures," Journal of Economic Theory, Elsevier, vol. 166(C), pages 282-303.
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    Cited by:

    1. Musatov, D. & Savvateev, A., 2022. "Mathematical models of stable jurisdiction partitions: A survey of results and new directions," Journal of the New Economic Association, New Economic Association, vol. 54(2), pages 12-38.

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    More about this item

    Keywords

    Brouwer-Kakutani fixed points theorems; compression and expansion conditions; country formation; migration-consistent (stable) partition;
    All these keywords.

    JEL classification:

    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects

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