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- Title
Complexity in Environment and Space - Sensitivity on Model Specification.
- Authors
Commendatore, Pasquale; Kubin, Ingrid; Sushko, Iryna
- Abstract
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.
- Subjects
ENVIRONMENTAL degradation; ECONOMIC geography; ENVIRONMENTAL auditing; ECONOMIC activity; TWO-dimensional models; SPACE environment
- Publication
Nonlinear Dynamics, Psychology & Life Sciences, 2024, Vol 28, Issue 2, p231
- ISSN
1090-0578
- Publication type
Article