On Convergence in the Spatial AK Growth Models
General Finance
2014-01-21 v1
Abstract
Recent research in economic theory attempts to study optimal economic growth and spatial location of economic activity in a unified framework. So far, the key result of this literature - asymptotic convergence, even in the absence of decreasing returns to capital - relies on specific assumptions about the objective of the social planner. We show that this result does not depend on such restrictive assumptions and obtains for a broader class of objective functions. We also generalize this finding, allowing for the time-varying technology parameter, and provide an explicit solution for the dynamics of spatial distribution of the capital stock.
Keywords
Cite
@article{arxiv.1401.4887,
title = {On Convergence in the Spatial AK Growth Models},
author = {Gani Aldashev and Serik Aldashev and Timoteo Carletti},
journal= {arXiv preprint arXiv:1401.4887},
year = {2014}
}