Complexity in Environment and Space - Sensitivity on Model Specification.
Nonlinear dynamics, psychology, and life sciences(2024)
摘要
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.
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