An analytical model for the formation of economic clusters |
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Authors: | Ludwig Chincarini Neer Asherie |
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Affiliation: | aDepartment of Economics, Pomona College, 425 N. College Avenue #208, Claremont, CA 91711, United States;bDepartment of Physics, Yeshiva University, Belfer Hall 1412, 2495 Amsterdam Avenue, New York, NY 10033-3312, United States |
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Abstract: | A simple spatial economy derived from microeconomic foundations is presented to gain insight into the formation of economic clusters. In this model, the formation of economic clusters is a consequence of the competition between economic forces that are consistent with atomistic agents maximizing their utility. An analytic approach is used to obtain the evolution of economic clusters. With this approach, the number of clusters which will grow can be predicted. These results are derived in the traditional one-dimensional geometry and extended to the more realistic two-dimensional landscape. |
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Keywords: | Economic geography Economic clusters Agglomeration Mathematical modelling City formation |
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