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Optimal Agglomerations in Dynamic Economics

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  • Brock, William A.
  • Xepapadeas, Anastasios
  • Yannacopoulos, Athanasios N.

Abstract

We study rational expectations equilibrium problems and social optimum problems in infinite horizon spatial economies in the con- text of a Ramsey type capital accumulation problem with geographical spillovers. We identify sufficient local and global conditions for the emergence (or not) of optimal agglomeration, using techniques from monotone operator theory and spectral theory in infinite dimensional Hilbert spaces. Our analytical methods can be used to systematically study optimal potential agglomeration and clustering in dynamic economics.

Suggested Citation

  • Brock, William A. & Xepapadeas, Anastasios & Yannacopoulos, Athanasios N., 2012. "Optimal Agglomerations in Dynamic Economics," Climate Change and Sustainable Development 138629, Fondazione Eni Enrico Mattei (FEEM).
    • Handle: RePEc:ags:feemcl:138629
    DOI: 10.22004/ag.econ.138629
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Simon Levin & A. Xepapadeas, 2015. "Transboundary Capital and Pollution Flows and the Emergence of Regional Inequalities," Working Papers 2015.69, Fondazione Eni Enrico Mattei.
    2. Mohsen Rahimi Piranfar & Hadi Khatibzadeh, 2021. "Long-Time Behavior of a Gradient System Governed by a Quasiconvex Function," Journal of Optimization Theory and Applications, Springer, vol. 188(1), pages 169-191, January.
    3. de Frutos, Javier & Martín-Herrán, Guiomar, 2019. "Spatial vs. non-spatial transboundary pollution control in a class of cooperative and non-cooperative dynamic games," European Journal of Operational Research, Elsevier, vol. 276(1), pages 379-394.
    4. Javier de Frutos & Guiomar Martín-Herrán, 2016. "Pollution control in a multiregional setting: a differential game with spatially distributed controls," Gecomplexity Discussion Paper Series 201601, Action IS1104 "The EU in the new complex geography of economic systems: models, tools and policy evaluation", revised Jan 2016.
    5. William Brock & Anastasios Xepapadeas & Athanasios Yannacopoulos, 2013. "Adjustment Costs and Long Run Spatial Agglomerations," Working Papers 2013.68, Fondazione Eni Enrico Mattei.
    6. Xepapadeas, Anastasios & Yannacopoulos, Athanasios N., 2023. "Spatial growth theory: Optimality and spatial heterogeneity," Journal of Economic Dynamics and Control, Elsevier, vol. 146(C).
    7. Xepapadeas, A. & Yannacopoulos, A.N., 2016. "Spatial growth with exogenous saving rates," Journal of Mathematical Economics, Elsevier, vol. 67(C), pages 125-137.
    8. Brock, William A. & Engström, Gustav & Grass, Dieter & Xepapadeas, Anastasios, 2013. "Energy balance climate models and general equilibrium optimal mitigation policies," Journal of Economic Dynamics and Control, Elsevier, vol. 37(12), pages 2371-2396.
    9. Anastasios Xepapadeas & Athanasios Yannacopoulos & Andreas Ioannidis, 2014. "Spatial Growth: The Distribution of Capital across Locations when Saving Rates are Exogenous," DEOS Working Papers 1412, Athens University of Economics and Business.
    10. Spyridon Tsangaris & Anastasios Xepapadeas & Athanasios Yannacopoulos, 2022. "Spatial externalities, R&D spillovers, and endogenous technological change," DEOS Working Papers 2225, Athens University of Economics and Business.
    11. Georgios I. Papayiannis, 2022. "Robust Policy Selection and Harvest Risk Quantification for Natural Resources Management under Model Uncertainty," Papers 2202.05326, arXiv.org.

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    More about this item

    Keywords

    Environmental Economics and Policy;

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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