Mathematical Finance Seminar
TU Berlin; MA 041
Fausto Gozzi (Rom)
Understanding the Time-Space Evolution of Economic Activities: Recent Mathematical Models and their application
The goal of this talk is to present some recent models on the time evolution of most important economic variables (e.g. consumption and capital) across different locations, taking into account space heterogeneity. In particular we focus on two recent papers looking at the macro level where there is one planner which, in a spatial Ramsey setting, maximizes utility across space with heterogeneous productivity in a deterministic (paper with R. Boucekkine, G. Fabbri, S. Federico) or in a stochastic setting (paper with M. Leocata). If time allows we will also introduce a mean field game model looking at the micro level where the agents move across space maximizing their own utility which also depends on the choices of the other agents.