Pasquale Commendatore - Profile on Academia.edu (original) (raw)
Papers by Pasquale Commendatore
Financial Development and Agglomeration. MPRA WORKING PAPER
The New Economic Geography (NEG) literature has paid little attention to the role of the banking ... more The New Economic Geography (NEG) literature has paid little attention to the role of the banking industry in a¤ecting where …rms decide to locate their business. Within the framework of the NEG, this paper aims to …ll this gap by studying the impact of the degree of regional …nancial development on the spatial distribution of economic activity. In order to explore this issue, we modify the standard Footloose Entrepreneur (FE) model by introducing a banking sector, while preserving all the other usual assumptions. We show that the existence of a banking sector enhances the agglomeration forces; so that, when regions are symmetric, a Core-Periphery outcome is more likely. When regions are characterised by di¤erent levels of …nancial development this result is reinforced and entrepreneurs are more likely to migrate towards the region where the banking sector is characterized by a higher degree of competition / lower degree of concentration and the interest rate is lower.
Annals of Operations Research
In this paper we analyze the role of pollution for industry location and residence choice. We pre... more In this paper we analyze the role of pollution for industry location and residence choice. We present a new economic geography (NEG) model in which manufacturing generates local pollution (that does not accumulate) and uses two types of labour input: unskilled workers that cannot migrate and work where they live; and high-skilled entrepreneurs that choose where to produce and where to live. Taking on board costless commuting or, in alternative, distance working, entrepreneurs can live in a different location from production. Both types of households enjoy utility from consuming all commodities (locally and imported variants) and suffer from local pollution. The resulting model is of the footloose entrepreneur variant, but involves two dynamic equations: the standard one governing the residential choice of entrepreneurs, and another one governing where production is located. The current paper analyses the discrete time dynamic process defined by a two-dimensional piecewise smooth map...
Ownership concentration, industrial agglomeration and welfare distribution
Taylor & Francis, Jan 29, 2016
The Economy as a Complex Spatial System, 2017
This chapter draws attention to a specific feature of a NEG model that uses linear (and not iso-e... more This chapter draws attention to a specific feature of a NEG model that uses linear (and not iso-elastic) demand functions, namely its ability to account for zero trade. Thus, it represents a suitable framework to study how changes in parameters that are typical for NEG models, such as trade costs and regional market size, not only shape the regional distribution of economic activity, but at the same time determine the emergence of additional trade links between formerly autarkic regions. We survey some related papers and present a three-region framework that potentially nests many possible trade patterns. To focus the analysis, we study in more detail three specific trade patterns frequently found in the EU trade network. We start with three autarkic regions; then we introduce the possibility that two regions trade with each other; and, finally, we allow for one region trading with the other two, but the latter are still not trading with each other. We find a surprising plethora of ...
Nonlinear Dynamics, 2020
We consider a two-class growth model with optimal saving and switch in behavior. The dynamics of ... more We consider a two-class growth model with optimal saving and switch in behavior. The dynamics of this model is described by a two-dimensional (2D) discontinuous map. We obtain stability conditions of the border and interior fixed points (known as Solow and Pasinetti equilibria, respectively) and investigate bifurcation structures observed in the parameter space of this map, associated with its attracting cycles and chaotic attractors. In particular, we show that on the x-axis, which is invariant, the map is reduced to a 1D piecewise increasing discontinuous map, and prove the existence of a corresponding period adding bifurcation structure issuing from a codimension-two border collision bifurcation point. Then, we describe how this structure evolves when the related attracting cycles on the x-axis lose their transverse stability via a transcritical bifurcation and the corresponding interior cycles appear. In particular, we show that the observed bifurcation structure, being associat...
Spatial Economic Analysis, 2020
Inspired by Brexit, the paper explores the effects of splitting an integration area or 'Union' on... more Inspired by Brexit, the paper explores the effects of splitting an integration area or 'Union' on trade patterns and the spatial distribution of industry. A linear three-region New Economic Geography (NEG) model is developed and two possible situations before separation are considered: agglomeration and dispersion. By analogy with the Brexit options, soft and hard separation scenarios are considered. Firms in the leaving region may move to the larger Union market, even on the periphery, relocation substituting trade; or firms in the Union may move in the more isolated leaving region, escaping from competition. The paper also analyses deeper Union integration following separation. Instances of multistability and complex dynamics are found.
Journal of Evolutionary Economics, 2017
In this paper, we put forward a 4-region new economic geography footloose entrepreneur model, in ... more In this paper, we put forward a 4-region new economic geography footloose entrepreneur model, in which regions are differentiated on the basis of their size and geographical position along a line. There are two distinct trade blocs, each of them consisting of a pair of regions. Direct and indirect trade between all regions is allowed, whereas factor mobility can occur only between regions of the same bloc. Given this more general geographical structure, compared to previous studies, we are able to disentangle two manifestations of the market access effect: firms can take advantage of locating both in a more central region (centrality effect) and/or in a bigger region (local market size effect). The model is able to generate a plethora of long-term outcomes,
Communications in Nonlinear Science and Numerical Simulation, 2017
We consider a three-region developing economy with poor transport infrastructures. Two models are... more We consider a three-region developing economy with poor transport infrastructures. Two models are related to different stages of development: in the first all regions are autarkic; in the second two of the regions begin to integrate with the third region still not accessible to trade. The properties of the two models are studied also considering the interplay between industry location and trade patterns. Dynamics of these models are described by two-dimensional piecewise smooth maps, characterized by multistability and complex bifurcation structure of the parameter space. We obtain analytical results related to stability of various fixed points and illustrate several bifurcation structures by means of two-dimensional bifurcation diagrams and basins of coexisting attractors.
Review of International Economics, 2017
Using intra‐European interregional trade data, we analyze the topology of the E.U. regional trade... more Using intra‐European interregional trade data, we analyze the topology of the E.U. regional trade network. A triad census analysis confirms the intuition that the interregional trade network (and, thus, the European economic integration) is far from being complete. The majority of the E.U. interregional trade patterns are characterized by simple, at best bilateral, configurations. Moreover, we analyze the effect of trade costs in shaping the topological structure of the network. It emerges that the relative presence of simple trade configurations increases with distance, while the relative presence of more complex trade configurations decreases with distance. Finally, we discuss the theoretical underpinnings of these empirical facts through a simple new economic geography model with three regions. In this model, we analyze how trade costs shape the pattern of the trade network. On the whole we find a correspondence between theoretic and empirical results. However, details differ and...
Review of International Economics, 2017
We build a new economic geography model incorporating differences in productivity among sectors a... more We build a new economic geography model incorporating differences in productivity among sectors and countries, thus allowing for comparative advantage. We study the role that market size, absolute advantage, and comparative advantage have on the trade patterns and the long‐run spatial distribution of economic activity in a world with multicones of specialization. We briefly mention the possibility of long‐term fluctuations in the spatial distribution of industry by relying on a discrete‐time framework.
Lecture Notes in Economics and Mathematical Systems, 2016
We provide empirical evidence on the network structure of trade flows between European regions an... more We provide empirical evidence on the network structure of trade flows between European regions and discuss the theoretical underpinning of such a structure. First, we analyze EU regional trade data using Social Network Analysis. We describe the topology of this network and compute local and global centrality measures. Finally, we consider the distribution of higher order statistics, through the analysis of local clustering and main triadic structures in the triad census of interregional trade flows. In the theoretical part, we explore the relationship between trade costs and trade links. As shown by Behrens (2004, 2005a, 2005b) in a two-region linear new economic geography (NEG) model, trade costs and the local market size determine, even with finite trade costs, unconditional autarky and unilateral trade, that is, a one-directional flow from one region to the other. Following these contributions and guided by the empirical evidence, we clarify the relationship between market competition, trade costs and the patterns of trade in a three-region NEG model. We identify a larger set of trade network configurations other the three elementary ones that occur at the dyadic level between two regions (no trade, one-way trade, reciprocated two-way trade), and relate the model with the triad census.
Journal of Economic Dynamics and Control, 2014
This article is based upon work from COST Action IS 1104 "The EU in the new economic complex geog... more This article is based upon work from COST Action IS 1104 "The EU in the new economic complex geography", supported by COST (European Cooperation in Science and Technology). COST is a pan-European intergovernmental framework. Its mission is to enable break-through scientific and technological developments leading to new concepts and products and thereby contribute to strengthening Europe's research and innovation capacities. It allows researchers, engineers and scholars to jointly develop their own ideas and take new initiatives across all fields of science and technology, while promoting multi-and interdisciplinary approaches. COST aims at fostering a better integration of less research intensive countries to the knowledge hubs of the European Research Area. The COST Association, an International notfor-profit Association under Belgian Law, integrates all management, governing and administrative functions necessary for the operation of the framework. The COST Association has currently 36 Member Countries.
Institutional and Social Dynamics of Growth and Distribution
We introduce public expenditure (PE) in a general post Keynesian framework characterized by a non... more We introduce public expenditure (PE) in a general post Keynesian framework characterized by a nonlinear investment function. Our aims are: 1) to provide a systematic analysis of the impact of PE ('productive' or 'non productive') and of the Government sector size on economic growth, allowing effective demand to play a crucial role. Our work fills a lacuna in the post Keynesian literature given that scant attention has been devoted to this topic. In our paper, 'Productive' PE affects the (fixed) coefficients of production similarly to Barro (1990); 2) to compare and contrast two different interpretations which assign a different meaning to the autonomous component of the investment function, corresponding to long run demand growth expectations: the Kaleckian interpretation assumes exogenous long run expectations; in the Classical or Harrodian interpretation, long-run expectations are linked to the 'warranted rate of growth'; 3) to reproduce a variety of complex phenomena (multiple equilibria, hysteresis, low growth traps, regular and irregular growth cycles), by introducing a simple nonlinearity in the investment function in the spirit of Kalecki's (1937) investment theory and Kaldor's (1940) trade cycle model. A plethora of results emerge from our simple framework concerning comparative statics and dynamic behaviour.
Austrian trade cycle theory put forward by Hayek. 4 Moreover, they have confirmed the limits of t... more Austrian trade cycle theory put forward by Hayek. 4 Moreover, they have confirmed the limits of the widespread belief that Harrod developed his analysis of growth, by assuming absence of monetary influences and fixed technical coefficients and saving propensity, in order to establish the famous "knife-edge problem". 5 In opposition to the first view, Young (1989, pp. 15-50) has clarified that Harrod's efforts to develop a theory of growth and dynamics were mainly stimulated by his contacts with Keynes. These began in 1922, when Keynes invited Harrod to study economics in Cambridge under his supervision. 6 One year later, having read A Tract on Monetary Reform, Harrod took up Keynes's call for deeper research into the problems of the 'credit cycle', and over the next few years produced a number of essays on the subject. In these Harrod focused on the theoretical basis for -and policy options related to -issues raised by Keynes in the Tract. (Young, 1989, p. 16) According to Young, in these essays, some of which were never published, Harrod dealt with a problem that was central in Keynes's and in other works of the time. This literature, moving from the idea that the economic system is stable and that negative influences on fluctuations only come from monetary and credit factors, tried to identify a "neutral" policy, i.e. a policy that can prevent monetary and credit disturbances from amplifying the fluctuations of the economy. In those years Harrod also paid attention to Keynes's proposals for Government interventions. 7 According to Phelps Brown (1980, pp. 13 and 18), Harrod first heard Keynes's proposals at the Liberal Summer School of 1924. Since then, he closely followed Keynes's intellectual activity on this subject 8 and after the great depression he actively supported his proposals. 9 By that time, Harrod had come to recognise the need for deep political and theoretical changes. 10 As Young (1989, pp. 30-38) points out, in an unpublished paper, written in 1933, Harrod stated that the great depression had posed a new problem to economists and politicians. The previous recessions had not led the economy too far from full employment, nor had they cast doubts on the belief that the economy is able to return to it. The severity of the great depression had 4 This interpretation was proposed by Kregel (1980 p. 98; 1985, pp. 66-67)q 5 The major reference for the "knife-edge" interpretation is 1970). For the opposite interpretation, see , , . 6 See Phelps Brown (1980, pp. 7-8). 7 'During the 'twenties many of us were deeply interested in Keynes's advocacy of measures to promote fuller employment'. (Harrod, 1967, p. 316) 8 According to Phelps Brown, Harrod constantly followed Keynes's work for the Liberal Party, with his contributions to the Yellow Book of 1928 and the defense of Lloyd George's proposal for public works. At the same time, Phelps Brown says, he closely followed Keynes's academic work, as he did in summer 1926, when he spent a fortnight with Maynard and Lydia at Tilton, while Keynes was working on the galleys of the Treatise. 9 Phelps Brown (1980, p. 19) points out that since 1932, Harrod wrote several letters to The Times, in favour of Keynes's proposals. 10 Young (1989, p. 30) quotes Harrod (1971, p. 77) to claim that 1933 marked a turning point in the theoretical work of the Oxford economist on this subject.
International Conference ESCoS – II CICSE Workshop “The Economy as a Spatial Complex System” (ESCoS 2018)
New Economic Geography (NEG) models do not typically account for the presence of regions other th... more New Economic Geography (NEG) models do not typically account for the presence of regions other than the ones involved in the integration process. We explore such a possibility in a Footloose Entrepreneur (FE) model aiming at studying the stability properties of long-run industrial location equilibria. We consider a world economy composed by a customs union of two regions (regions 1 and 2) and an" outside region" which can be regarded as the rest of the world (region 3). The effects of economic integration on ...
Financial Development and Agglomeration. MPRA WORKING PAPER
The New Economic Geography (NEG) literature has paid little attention to the role of the banking ... more The New Economic Geography (NEG) literature has paid little attention to the role of the banking industry in a¤ecting where …rms decide to locate their business. Within the framework of the NEG, this paper aims to …ll this gap by studying the impact of the degree of regional …nancial development on the spatial distribution of economic activity. In order to explore this issue, we modify the standard Footloose Entrepreneur (FE) model by introducing a banking sector, while preserving all the other usual assumptions. We show that the existence of a banking sector enhances the agglomeration forces; so that, when regions are symmetric, a Core-Periphery outcome is more likely. When regions are characterised by di¤erent levels of …nancial development this result is reinforced and entrepreneurs are more likely to migrate towards the region where the banking sector is characterized by a higher degree of competition / lower degree of concentration and the interest rate is lower.
Annals of Operations Research
In this paper we analyze the role of pollution for industry location and residence choice. We pre... more In this paper we analyze the role of pollution for industry location and residence choice. We present a new economic geography (NEG) model in which manufacturing generates local pollution (that does not accumulate) and uses two types of labour input: unskilled workers that cannot migrate and work where they live; and high-skilled entrepreneurs that choose where to produce and where to live. Taking on board costless commuting or, in alternative, distance working, entrepreneurs can live in a different location from production. Both types of households enjoy utility from consuming all commodities (locally and imported variants) and suffer from local pollution. The resulting model is of the footloose entrepreneur variant, but involves two dynamic equations: the standard one governing the residential choice of entrepreneurs, and another one governing where production is located. The current paper analyses the discrete time dynamic process defined by a two-dimensional piecewise smooth map...
Ownership concentration, industrial agglomeration and welfare distribution
Taylor & Francis, Jan 29, 2016
The Economy as a Complex Spatial System, 2017
This chapter draws attention to a specific feature of a NEG model that uses linear (and not iso-e... more This chapter draws attention to a specific feature of a NEG model that uses linear (and not iso-elastic) demand functions, namely its ability to account for zero trade. Thus, it represents a suitable framework to study how changes in parameters that are typical for NEG models, such as trade costs and regional market size, not only shape the regional distribution of economic activity, but at the same time determine the emergence of additional trade links between formerly autarkic regions. We survey some related papers and present a three-region framework that potentially nests many possible trade patterns. To focus the analysis, we study in more detail three specific trade patterns frequently found in the EU trade network. We start with three autarkic regions; then we introduce the possibility that two regions trade with each other; and, finally, we allow for one region trading with the other two, but the latter are still not trading with each other. We find a surprising plethora of ...
Nonlinear Dynamics, 2020
We consider a two-class growth model with optimal saving and switch in behavior. The dynamics of ... more We consider a two-class growth model with optimal saving and switch in behavior. The dynamics of this model is described by a two-dimensional (2D) discontinuous map. We obtain stability conditions of the border and interior fixed points (known as Solow and Pasinetti equilibria, respectively) and investigate bifurcation structures observed in the parameter space of this map, associated with its attracting cycles and chaotic attractors. In particular, we show that on the x-axis, which is invariant, the map is reduced to a 1D piecewise increasing discontinuous map, and prove the existence of a corresponding period adding bifurcation structure issuing from a codimension-two border collision bifurcation point. Then, we describe how this structure evolves when the related attracting cycles on the x-axis lose their transverse stability via a transcritical bifurcation and the corresponding interior cycles appear. In particular, we show that the observed bifurcation structure, being associat...
Spatial Economic Analysis, 2020
Inspired by Brexit, the paper explores the effects of splitting an integration area or 'Union' on... more Inspired by Brexit, the paper explores the effects of splitting an integration area or 'Union' on trade patterns and the spatial distribution of industry. A linear three-region New Economic Geography (NEG) model is developed and two possible situations before separation are considered: agglomeration and dispersion. By analogy with the Brexit options, soft and hard separation scenarios are considered. Firms in the leaving region may move to the larger Union market, even on the periphery, relocation substituting trade; or firms in the Union may move in the more isolated leaving region, escaping from competition. The paper also analyses deeper Union integration following separation. Instances of multistability and complex dynamics are found.
Journal of Evolutionary Economics, 2017
In this paper, we put forward a 4-region new economic geography footloose entrepreneur model, in ... more In this paper, we put forward a 4-region new economic geography footloose entrepreneur model, in which regions are differentiated on the basis of their size and geographical position along a line. There are two distinct trade blocs, each of them consisting of a pair of regions. Direct and indirect trade between all regions is allowed, whereas factor mobility can occur only between regions of the same bloc. Given this more general geographical structure, compared to previous studies, we are able to disentangle two manifestations of the market access effect: firms can take advantage of locating both in a more central region (centrality effect) and/or in a bigger region (local market size effect). The model is able to generate a plethora of long-term outcomes,
Communications in Nonlinear Science and Numerical Simulation, 2017
We consider a three-region developing economy with poor transport infrastructures. Two models are... more We consider a three-region developing economy with poor transport infrastructures. Two models are related to different stages of development: in the first all regions are autarkic; in the second two of the regions begin to integrate with the third region still not accessible to trade. The properties of the two models are studied also considering the interplay between industry location and trade patterns. Dynamics of these models are described by two-dimensional piecewise smooth maps, characterized by multistability and complex bifurcation structure of the parameter space. We obtain analytical results related to stability of various fixed points and illustrate several bifurcation structures by means of two-dimensional bifurcation diagrams and basins of coexisting attractors.
Review of International Economics, 2017
Using intra‐European interregional trade data, we analyze the topology of the E.U. regional trade... more Using intra‐European interregional trade data, we analyze the topology of the E.U. regional trade network. A triad census analysis confirms the intuition that the interregional trade network (and, thus, the European economic integration) is far from being complete. The majority of the E.U. interregional trade patterns are characterized by simple, at best bilateral, configurations. Moreover, we analyze the effect of trade costs in shaping the topological structure of the network. It emerges that the relative presence of simple trade configurations increases with distance, while the relative presence of more complex trade configurations decreases with distance. Finally, we discuss the theoretical underpinnings of these empirical facts through a simple new economic geography model with three regions. In this model, we analyze how trade costs shape the pattern of the trade network. On the whole we find a correspondence between theoretic and empirical results. However, details differ and...
Review of International Economics, 2017
We build a new economic geography model incorporating differences in productivity among sectors a... more We build a new economic geography model incorporating differences in productivity among sectors and countries, thus allowing for comparative advantage. We study the role that market size, absolute advantage, and comparative advantage have on the trade patterns and the long‐run spatial distribution of economic activity in a world with multicones of specialization. We briefly mention the possibility of long‐term fluctuations in the spatial distribution of industry by relying on a discrete‐time framework.
Lecture Notes in Economics and Mathematical Systems, 2016
We provide empirical evidence on the network structure of trade flows between European regions an... more We provide empirical evidence on the network structure of trade flows between European regions and discuss the theoretical underpinning of such a structure. First, we analyze EU regional trade data using Social Network Analysis. We describe the topology of this network and compute local and global centrality measures. Finally, we consider the distribution of higher order statistics, through the analysis of local clustering and main triadic structures in the triad census of interregional trade flows. In the theoretical part, we explore the relationship between trade costs and trade links. As shown by Behrens (2004, 2005a, 2005b) in a two-region linear new economic geography (NEG) model, trade costs and the local market size determine, even with finite trade costs, unconditional autarky and unilateral trade, that is, a one-directional flow from one region to the other. Following these contributions and guided by the empirical evidence, we clarify the relationship between market competition, trade costs and the patterns of trade in a three-region NEG model. We identify a larger set of trade network configurations other the three elementary ones that occur at the dyadic level between two regions (no trade, one-way trade, reciprocated two-way trade), and relate the model with the triad census.
Journal of Economic Dynamics and Control, 2014
This article is based upon work from COST Action IS 1104 "The EU in the new economic complex geog... more This article is based upon work from COST Action IS 1104 "The EU in the new economic complex geography", supported by COST (European Cooperation in Science and Technology). COST is a pan-European intergovernmental framework. Its mission is to enable break-through scientific and technological developments leading to new concepts and products and thereby contribute to strengthening Europe's research and innovation capacities. It allows researchers, engineers and scholars to jointly develop their own ideas and take new initiatives across all fields of science and technology, while promoting multi-and interdisciplinary approaches. COST aims at fostering a better integration of less research intensive countries to the knowledge hubs of the European Research Area. The COST Association, an International notfor-profit Association under Belgian Law, integrates all management, governing and administrative functions necessary for the operation of the framework. The COST Association has currently 36 Member Countries.
Institutional and Social Dynamics of Growth and Distribution
We introduce public expenditure (PE) in a general post Keynesian framework characterized by a non... more We introduce public expenditure (PE) in a general post Keynesian framework characterized by a nonlinear investment function. Our aims are: 1) to provide a systematic analysis of the impact of PE ('productive' or 'non productive') and of the Government sector size on economic growth, allowing effective demand to play a crucial role. Our work fills a lacuna in the post Keynesian literature given that scant attention has been devoted to this topic. In our paper, 'Productive' PE affects the (fixed) coefficients of production similarly to Barro (1990); 2) to compare and contrast two different interpretations which assign a different meaning to the autonomous component of the investment function, corresponding to long run demand growth expectations: the Kaleckian interpretation assumes exogenous long run expectations; in the Classical or Harrodian interpretation, long-run expectations are linked to the 'warranted rate of growth'; 3) to reproduce a variety of complex phenomena (multiple equilibria, hysteresis, low growth traps, regular and irregular growth cycles), by introducing a simple nonlinearity in the investment function in the spirit of Kalecki's (1937) investment theory and Kaldor's (1940) trade cycle model. A plethora of results emerge from our simple framework concerning comparative statics and dynamic behaviour.
Austrian trade cycle theory put forward by Hayek. 4 Moreover, they have confirmed the limits of t... more Austrian trade cycle theory put forward by Hayek. 4 Moreover, they have confirmed the limits of the widespread belief that Harrod developed his analysis of growth, by assuming absence of monetary influences and fixed technical coefficients and saving propensity, in order to establish the famous "knife-edge problem". 5 In opposition to the first view, Young (1989, pp. 15-50) has clarified that Harrod's efforts to develop a theory of growth and dynamics were mainly stimulated by his contacts with Keynes. These began in 1922, when Keynes invited Harrod to study economics in Cambridge under his supervision. 6 One year later, having read A Tract on Monetary Reform, Harrod took up Keynes's call for deeper research into the problems of the 'credit cycle', and over the next few years produced a number of essays on the subject. In these Harrod focused on the theoretical basis for -and policy options related to -issues raised by Keynes in the Tract. (Young, 1989, p. 16) According to Young, in these essays, some of which were never published, Harrod dealt with a problem that was central in Keynes's and in other works of the time. This literature, moving from the idea that the economic system is stable and that negative influences on fluctuations only come from monetary and credit factors, tried to identify a "neutral" policy, i.e. a policy that can prevent monetary and credit disturbances from amplifying the fluctuations of the economy. In those years Harrod also paid attention to Keynes's proposals for Government interventions. 7 According to Phelps Brown (1980, pp. 13 and 18), Harrod first heard Keynes's proposals at the Liberal Summer School of 1924. Since then, he closely followed Keynes's intellectual activity on this subject 8 and after the great depression he actively supported his proposals. 9 By that time, Harrod had come to recognise the need for deep political and theoretical changes. 10 As Young (1989, pp. 30-38) points out, in an unpublished paper, written in 1933, Harrod stated that the great depression had posed a new problem to economists and politicians. The previous recessions had not led the economy too far from full employment, nor had they cast doubts on the belief that the economy is able to return to it. The severity of the great depression had 4 This interpretation was proposed by Kregel (1980 p. 98; 1985, pp. 66-67)q 5 The major reference for the "knife-edge" interpretation is 1970). For the opposite interpretation, see , , . 6 See Phelps Brown (1980, pp. 7-8). 7 'During the 'twenties many of us were deeply interested in Keynes's advocacy of measures to promote fuller employment'. (Harrod, 1967, p. 316) 8 According to Phelps Brown, Harrod constantly followed Keynes's work for the Liberal Party, with his contributions to the Yellow Book of 1928 and the defense of Lloyd George's proposal for public works. At the same time, Phelps Brown says, he closely followed Keynes's academic work, as he did in summer 1926, when he spent a fortnight with Maynard and Lydia at Tilton, while Keynes was working on the galleys of the Treatise. 9 Phelps Brown (1980, p. 19) points out that since 1932, Harrod wrote several letters to The Times, in favour of Keynes's proposals. 10 Young (1989, p. 30) quotes Harrod (1971, p. 77) to claim that 1933 marked a turning point in the theoretical work of the Oxford economist on this subject.
International Conference ESCoS – II CICSE Workshop “The Economy as a Spatial Complex System” (ESCoS 2018)
New Economic Geography (NEG) models do not typically account for the presence of regions other th... more New Economic Geography (NEG) models do not typically account for the presence of regions other than the ones involved in the integration process. We explore such a possibility in a Footloose Entrepreneur (FE) model aiming at studying the stability properties of long-run industrial location equilibria. We consider a world economy composed by a customs union of two regions (regions 1 and 2) and an" outside region" which can be regarded as the rest of the world (region 3). The effects of economic integration on ...