BOUCEKKINE, Raouf; CAMACHO, Carmen; FABBRI, Giorgio - Institut de Recherche Économique et Sociale (IRES), … - 2010
We study the optimal dynamics of an AK economy where population is uniformly distributed along the unit circle. Locations only differ in initial capital endowments. Despite constant returns to capital, we prove that transition dynamics will set in. In particular, we prove that the...