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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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Cited by:
  1. Holger Breinlich & Gianmarco I. P. Ottaviano & Jonathan R. W. Temple, 2013. "Regional growth and regional decline," LSE Research Online Documents on Economics 51575, London School of Economics and Political Science, LSE Library.
  2. Kristian Behrens & Giordano Mion & Yasusada Murata & Jens Südekum, 2009. "Trade, wages and productivity," Working Paper Research 161, National Bank of Belgium.
  3. Ottaviano, Gianmarco, 2012. "Agglomeration,Trade and Selection," CEPR Discussion Papers 9046, C.E.P.R. Discussion Papers.

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