Long-term economic fluctuations: a spatial view

Abstract This paper presents a framework for the analysis of spatial dynamics, by using the present discussion on long-term economic fluctuations (long waves, etc.) as a background. After a brief typological overview of some important spatial dynamic studies, an introduction to the long wave debate is given. It is asserted that in this context threshold values and bottleneck factors are of decisive importance for the emergence of spatially fluctuating economic patterns. In this framework, both entrepreneurial behavior based on innovation strategies and public policy based on urban incubator strategies and/or infrastructure strategies play a crucial role. In order to illustrate the importance of both factors, a simple dynamic model based on a quasi-production function approach is introduced in order to analyze the conditions under which stable and unstable spatial fluctuations may occur.

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