Perfect competition in a continuous spatial economy

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• 作者：Mossay ; Pascal
• 关键词：Perfect competition ; Spatial economy ; PDE ; Stability
• 刊名：Chaos, Solitons and Fractals
• 出版年：2003
• 出版时间：October, 2003
• 年：2003
• 卷：18
• 期：3
• 页码：445-450
• 全文大小：88.6 K

文摘

We present a model of spatial adjustments of economic agents across perfectly competitive locations distributed along a continuous geographical space. The evolution of the spatial economy is governed by a set of partial differential equations. We perform a local stability analysis around the uniform steady-state by using the method of normal modes. Examples are presented for the case of two consumer types and two local goods. The spatial stability of the uniform steady-state depends crucially on whether the law of demand holds.