The footloose entrepreneur model with a finite number of equidistant regions

José M. Gaspar; Sofia B. S. D. Castro; João Correia-da-Silva

doi:10.1111/ijet.12215

The footloose entrepreneur model with a finite number of equidistant regions

José M. Gaspar, Sofia B. S. D. Castro, João Correia-da-Silva

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5 Citations (Scopus)

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Abstract

We study the Footloose Entrepreneur model with a finite number of equidistant regions, focusing on the analysis of stability of agglomeration, total dispersion, and boundary dispersion. As the number of regions increases, there is more tendency for agglomeration and less tendency for dispersion. As it tends to infinity, agglomeration always becomes stable while dispersion always becomes unstable. These results are robust to any composition of the global workforce and its dependence on the number of regions. Numerical evidence suggests that boundary dispersion is never stable. We introduce exogenous regional heterogeneity and obtain a general condition for stability of agglomeration.

Original language	English
Pages (from-to)	420-446
Number of pages	27
Journal	International Journal of Economic Theory
Volume	16
Issue number	4
DOIs	https://doi.org/10.1111/ijet.12215
Publication status	Published - Dec 2020

Keywords

Agglomeration
Core-periphery
Footloose entrepreneur
Multiple regions

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10.1111/ijet.12215

20309625Accepted author manuscript, 493 KBLicence: Unspecified

http://hdl.handle.net/10400.14/26833Licence: Unspecified

Cite this

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title = "The footloose entrepreneur model with a finite number of equidistant regions",

abstract = "We study the Footloose Entrepreneur model with a finite number of equidistant regions, focusing on the analysis of stability of agglomeration, total dispersion, and boundary dispersion. As the number of regions increases, there is more tendency for agglomeration and less tendency for dispersion. As it tends to infinity, agglomeration always becomes stable while dispersion always becomes unstable. These results are robust to any composition of the global workforce and its dependence on the number of regions. Numerical evidence suggests that boundary dispersion is never stable. We introduce exogenous regional heterogeneity and obtain a general condition for stability of agglomeration.",

keywords = "Agglomeration, Core-periphery, Footloose entrepreneur, Multiple regions",

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T1 - The footloose entrepreneur model with a finite number of equidistant regions

AU - Gaspar, José M.

AU - Castro, Sofia B. S. D.

AU - Correia-da-Silva, João

PY - 2020/12

Y1 - 2020/12

N2 - We study the Footloose Entrepreneur model with a finite number of equidistant regions, focusing on the analysis of stability of agglomeration, total dispersion, and boundary dispersion. As the number of regions increases, there is more tendency for agglomeration and less tendency for dispersion. As it tends to infinity, agglomeration always becomes stable while dispersion always becomes unstable. These results are robust to any composition of the global workforce and its dependence on the number of regions. Numerical evidence suggests that boundary dispersion is never stable. We introduce exogenous regional heterogeneity and obtain a general condition for stability of agglomeration.

AB - We study the Footloose Entrepreneur model with a finite number of equidistant regions, focusing on the analysis of stability of agglomeration, total dispersion, and boundary dispersion. As the number of regions increases, there is more tendency for agglomeration and less tendency for dispersion. As it tends to infinity, agglomeration always becomes stable while dispersion always becomes unstable. These results are robust to any composition of the global workforce and its dependence on the number of regions. Numerical evidence suggests that boundary dispersion is never stable. We introduce exogenous regional heterogeneity and obtain a general condition for stability of agglomeration.

KW - Agglomeration

KW - Core-periphery

KW - Footloose entrepreneur

KW - Multiple regions

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SP - 420

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JO - International Journal of Economic Theory

JF - International Journal of Economic Theory

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ER -

The footloose entrepreneur model with a finite number of equidistant regions

Abstract

Keywords

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Top cited article 2019-2020 in International Journal of Economic Theory

Third international workshop "Market Studies and Spatial Economics",

CEGE: Research Center in Management and Economics

Cite this

The footloose entrepreneur model with a finite number of equidistant regions

Abstract

Keywords

Access to Document

Other files and links

Fingerprint

Prizes

Top cited article 2019-2020 in International Journal of Economic Theory

Activities

Third international workshop "Market Studies and Spatial Economics",

Projects

CEGE: Research Center in Management and Economics

Cite this