O PAPEL DOS RENDIMENTOS CRESCENTES NA LOCALIZAÇÃO ECONÔMICA

Abstract

The classical economic theory was built by supposing convexity of the production function as a result of decreasing returns of scale, which imply the existence and uniqueness of the equilibrium. Actually, the existence of increasing returns is central to the modern theory of development, industrial localization, international trade, and economic geography. The main purpose of this paper is to present four models that use agglomeration economies and adjustment costs to capture important insights. Such that, It is our aim to present how the history vs. expectations works to provide the long run equilibrium. The models studied are: Matsuyama (1991), Krugman (1991), Benabou e Fukao (1993) e Arthur (1994).