TY - JOUR
T1 - Border Collision Bifurcations in a Footloose Capital Model with First Nature Firms
AU - Agliari, Anna
AU - Commendatore, Pasquale
AU - Foroni, Ilaria
AU - Kubin, Ingrid
PY - 2011
Y1 - 2011
N2 - In this paper we extend the discrete time Footloose Capital model analyzed
in Commendatore et al. (Nonlinear Dyn Psychol Life Sci 11(2):267–289, 2007)
by introducing “first nature firms”, i.e., firms that use locally specific blueprints and,therefore, are immobile. Due to the presence of first nature firms (symmetrically distributed across the regions), the central dynamic map becomes a piecewise differentiable
function: in addition to “standard” flip and pitchfork bifurcations also border
collision bifurcations are possible and instances of multistability may emerge. Our analysis confirms and extends the results of Commendatore et al. (2007): (1) continuous time formulation hides complex dynamics patterns; (2) symmetric distributions of industrial activity can be endogenously generated and are path dependent.
AB - In this paper we extend the discrete time Footloose Capital model analyzed
in Commendatore et al. (Nonlinear Dyn Psychol Life Sci 11(2):267–289, 2007)
by introducing “first nature firms”, i.e., firms that use locally specific blueprints and,therefore, are immobile. Due to the presence of first nature firms (symmetrically distributed across the regions), the central dynamic map becomes a piecewise differentiable
function: in addition to “standard” flip and pitchfork bifurcations also border
collision bifurcations are possible and instances of multistability may emerge. Our analysis confirms and extends the results of Commendatore et al. (2007): (1) continuous time formulation hides complex dynamics patterns; (2) symmetric distributions of industrial activity can be endogenously generated and are path dependent.
KW - Border collision bifurcations ·
KW - Footloose Capital models
KW - New Economic Geography
KW - Piecewise smooth map
KW - Border collision bifurcations ·
KW - Footloose Capital models
KW - New Economic Geography
KW - Piecewise smooth map
UR - http://hdl.handle.net/10807/5361
U2 - 10.1007/s10614-011-9293-8
DO - 10.1007/s10614-011-9293-8
M3 - Article
SN - 0927-7099
VL - 38
SP - 349
EP - 366
JO - Computational Economics
JF - Computational Economics
ER -