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Discrete Dynamics for the Core-periphery Model

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  • Liliana Garrido-da-Silva
  • Sofia B. S. D. Castro
  • Paulo B. Vasconcelos

Abstract

It is known that the discretisation of continuous-time models can introduce chaotic behaviour, even when this is not consistent with observations or even the model's assumptions. We propose generic dynamics describing discrete-time core-periphery models that comply with the established assumptions in the literature and are consistent with observed behaviour. The desired properties of the dynamics are proved analytically in the general case. We also give particular forms for the dynamics for those interested in applying our model.

Suggested Citation

  • Liliana Garrido-da-Silva & Sofia B. S. D. Castro & Paulo B. Vasconcelos, 2015. "Discrete Dynamics for the Core-periphery Model," Spatial Economic Analysis, Taylor & Francis Journals, vol. 10(1), pages 36-51, March.
    • Handle: RePEc:taf:specan:v:10:y:2015:i:1:p:36-51
    DOI: 10.1080/17421772.2014.992361
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    References listed on IDEAS

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    6. Anna Agliari & Pasquale Commendatore & Ilaria Foroni & Ingrid Kubin, 2014. "Expectations and industry location: a discrete time dynamical analysis," Decisions in Economics and Finance, Springer;Associazione per la Matematica, vol. 37(1), pages 3-26, April.
    7. Pasquale Commendatore & Martin Currie & Ingrid Kubin, 2008. "Footloose Entrepreneurs, Taxes and Subsidies," Spatial Economic Analysis, Taylor & Francis Journals, vol. 3(1), pages 115-141.
    8. Currie, Martin & Kubin, Ingrid, 2006. "Chaos in the core-periphery model," Journal of Economic Behavior & Organization, Elsevier, vol. 60(2), pages 252-275, June.
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    Cited by:

    1. Sergey Kichko, 2017. "Core-Periphery vs Home Market Effect: Trade in the Traditional Sector and the Demand Advantage," HSE Working papers WP BRP 159/EC/2017, National Research University Higher School of Economics.

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