Complexity in Environment and Space - Sensitivity on Model Specification

In this paper, we study the complex interaction between environmental damage and location in space of firms and entrepreneurial households. We use a New Economic Geography (NEG) framework, suitably extended to account for environmental damage and the two mobility processes. The resulting model is a...

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Bibliographic Details
Published inNonlinear dynamics, psychology, and life sciences Vol. 28; no. 2; p. 231
Main Authors Commendatore, Pasquale, Kubin, Ingrid, Sushko, Iryna
Format Journal Article
LanguageEnglish
Published United States 01.04.2024
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Summary:In this paper, we study the complex interaction between environmental damage and location in space of firms and entrepreneurial households. We use a New Economic Geography (NEG) framework, suitably extended to account for environmental damage and the two mobility processes. The resulting model is a two-dimensional piecewise smooth map with two constraints for each variable, and we use analytic and numerical tools to explore its long-run dynamics. We pay special attention to the different types of fixed points and the structure of the respective basins of attraction. Their complexity re-enforces a core theme of the NEG: History matters for the long run location in space of economic activity.
ISSN:1090-0578