Spatial frictions

Behrens, Kristian, Mion, Giordano, Murata, Yasusada and Suedekum, Jens (2017) Spatial frictions. Journal of Urban Economics, 97 (1). pp. 40-70. ISSN 0094-1190

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Abstract

The world is replete with spatial frictions. Shipping goods across cities entails trade frictions. Commuting within cities causes urban frictions. How important are these frictions in shaping the spatial economy? We develop and quantify a multi-city general equilibrium model to address this question at three different levels: Do spatial frictions matter for the city-size distribution? Do they affect individual city sizes? Do they contribute to the productivity advantage of large cities and the toughness of competition in cities? The short answers are: no; yes; and it depends.

Item Type: Article
Schools and Departments: School of Business, Management and Economics > Economics
Subjects: H Social Sciences > HB Economic theory. Demography > HB0131 Methodology > HB0135 Mathematical economics. Quantitative methods Including econometrics, input-output analysis, game theory
Depositing User: Giordano Mion
Date Deposited: 05 Oct 2018 10:25
Last Modified: 01 Jul 2019 17:45
URI: http://sro.sussex.ac.uk/id/eprint/79176

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