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In this paper, we investigate the impact on aggregate regional utility as a result of both exogenous growth and endogenous growth in a spatial system. We will first analyze the case of two closed regions, followed by the case of two open regions. The main instrument used in our approach to study...
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by supposing that the region under study has two sectors. The first sector uses physical capital {K(t)} and trained … workers {A(t)W(t)} to produce creative capital {R(t)}. The second sector uses physical and creative capital to produce a final … consumption good {Q(t)}. In this setting, we accomplish four tasks. First, we derive the equations of motion for physical capital …
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