DP1813 A geometry of Specialization
|Author(s):||Joseph Francois, Doug R Nelson|
|Publication Date:||March 1998|
|Keyword(s):||Agglomeration, location of industry, Specialization, trade and development|
|JEL(s):||F12, O12, O41|
|Programme Areas:||International Trade and Regional Economics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=1813|
Division of labour models have become a standard analytical tool, along with competitive general equilibrium models (Ricardian, HOS, Ricardo-Viner), in public finance, trade, growth, development and macroeconomics. Yet unlike the earlier models, specialization models lack a canonical representation. This is because they are both new and complex, characterized by multiple equilibria, instability and emergent structural properties under parameter transformation. We develop a general framework for such models, illustrating results from current research on specialization models, and explaining why one sub-class of these models is particularly difficult to illustrate easily.