ABSTRACT
In the last chapter, we introduced a number of mechanisms that can lead to polarization, rather than convergence, in a multiregional economy. The reader may have noticed that the descriptions of these mechanisms were almost exclusively verbal and that there was a notable lack of mathematical expressions and graphics portraying specific functional relationships between variables. This reflects what was, until recently, the state of play in the analysis of multiregional economies: formal models could capture mechanisms leading to convergence, but not mechanisms leading to polarization.
