Several investigations in the study of cosmological structure formation use
numerical simulations in both two and three dimensions. In this paper we a
ddress the subtle question of ambiguities in the nature of two-dimensional
gravity in an expanding background. We take a detailed and formal approach
by deriving the equations describing gravity in (D + 1) dimensions using th
e action principle of Einstein. We then consider the Newtonian limit of the
se equations and finally obtain the necessary fluid equations required to d
escribe structure formation. These equations are solved for the density per
turbation in both the linearized form and in the spherical top-hat model of
nonlinear growth. We find that, when the special case of D = 2 is consider
ed, no structures can grow. We therefore conclude that, within the frame wo
rk of Einstein's theory of gravity in (2 + 1) dimensions, formation of stru
ctures cannot take place. Finally, we indicate the different possible ways
of getting around this difficulty, so that growing structures can be obtain
ed in two-dimensional cosmological gravitational simulations, and discuss t
heir implications.