”On the Evolution of Regional Asymmetries”
نویسنده
چکیده
We model the evolution of regional asymmetries, and the associated intra-distribution mobility, as the outcome of adoption decisions taken by firms at different locations. We characterise the following equilibria: Persistent asymmetry where nobody adopts, Leapfrogging where low quality firms adopt, Forging ahead where high quality firms adopt, and Catching up where everybody adopts. We study the impact of economic integration on these equilibria and the evolution of technological asymmetries as well as intra-distribution mobility. In equilibrium the regional intra-distribution mobility is described by fluctuations between periods of Leapfrogging, Forging ahead and Catching up.
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