This paper examines the long-term behavior of a discrete-time Footloose Capital model, where capitalists, who are themselves immobile between regions, move their physical capital between regions in response to economic incentives. The spatial location of industry can exhibit cycles of any periodicity or behave chaotically. Long-term behavior is highly sensitive to transport costs and to the responsiveness of capitalists to profit differentials. The concentration of industry in one region can result from high transport costs or from rapid responses by capitalists. In terms of possible dynamical behaviors, the discrete-time model is much richer than the standard continuous-time Footloose Capital model.
Chaotic footloose capital / Commendatore, Pasquale; M., Currie; I., Kubin. - In: NONLINEAR DYNAMICS, PSYCHOLOGY AND LIFE SCIENCES. - ISSN 1090-0578. - STAMPA. - 11:2(2007), pp. 267-290.
Chaotic footloose capital
COMMENDATORE, PASQUALE;
2007
Abstract
This paper examines the long-term behavior of a discrete-time Footloose Capital model, where capitalists, who are themselves immobile between regions, move their physical capital between regions in response to economic incentives. The spatial location of industry can exhibit cycles of any periodicity or behave chaotically. Long-term behavior is highly sensitive to transport costs and to the responsiveness of capitalists to profit differentials. The concentration of industry in one region can result from high transport costs or from rapid responses by capitalists. In terms of possible dynamical behaviors, the discrete-time model is much richer than the standard continuous-time Footloose Capital model.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.