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Spatial Frictions

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  • Kristian Behrens
  • Giordano Mion
  • Yasusada Murata
  • Jens Südekum

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 novel framework 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 nature of competition in cities? The short answers are: no, yes, and it depends.

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Bibliographic Info

Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp1108.

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Date of creation: Dec 2011
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Handle: RePEc:cep:cepdps:dp1108

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Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP

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Keywords: trade frictions; urban frictions; productivity; city-size distribution; markups;

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References

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Citations

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Cited by:
  1. Breinlich, Holger & Ottaviano, Gianmarco I.P. & Temple, Jonathan R.W., 2014. "Regional Growth and Regional Decline," Handbook of Economic Growth, in: Handbook of Economic Growth, edition 1, volume 2, chapter 4, pages 683-779 Elsevier.
  2. Behrens, Kristian & Mion, Giordano & Murata, Yasusada & Südekum, Jens, 2009. "Trade, wages, and productivity," CEPR Discussion Papers 7369, C.E.P.R. Discussion Papers.
  3. Ottaviano, Gianmarco, 2012. "Agglomeration,Trade and Selection," CEPR Discussion Papers 9046, C.E.P.R. Discussion Papers.

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