Adjustment Costs and Long Run Spatial Agglomerations

We introduce knowledge spillovers as an externality in the production function of competitive firms operating in a finite spatial domain under adjustment costs. Spillovers are spatial as productive knowledge flows more easily among firms located nearby. When knowledge spillovers are not internalized by firms spatial agglomerations may emerge endogenously in a competitive equilibrium, however, they do not emerge at the steady state of the social optimum.

MoreLess

Year of publication:	2013
Authors:	Brock, William ; Xepapadeas, Anastasios ; Yannacopoulos, Athanasios
Publisher:	Milano : Fondazione Eni Enrico Mattei (FEEM)
Subject:	Investment Theory \| Adjustment Costs \| Spatial Agglomerations

freely available

Full text |

More access options

Check Google Scholar

In German libraries (KVK)

I need help

More details

Series:	Nota di Lavoro ; 68.2013
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	769661149 [GVK] hdl:10419/89610 [Handle] RePEc:fem:femwpa:2013.68 [RePEc]
Classification:	D21 - Firm Behavior ; R3 - Real Estate Markets, Spatial Production Analysis, and Firm Location ; C61 - Optimization Techniques; Programming Models; Dynamic Analysis
Source:	EconStor

Persistent link: https://www.econbiz.de/10010328697