Dynamics of Interregional Trade
Nonlinear dynamics does not by necessity lead to complex phenomena, such as chaos. As an example to the contrary we can take the elegant model of interregional trade equilibrium and dynamics as formulated by Martin Beckmann in 1952 and 1953. This gives us one more opportunity to study partial differential equation models in economics and to employ the concepts from vector analysis introduced in Chapter 3.
KeywordsSingular Point Saddle Point Excess Demand Saddle Connection Freight Rate
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