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Economic Linkages Across Space

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Author Info
Overman, Henry G.
Rice, Patricia
Venables, Anthony J.

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Abstract

We develop a diagrammatic framework that can be used to study the economic linkages between regions or cities. Hitherto, such linkages have not been the primary focus of either the theoretical or empirical literatures. We use the framework to analyse the impact of shocks that occur in one region (eg productivity improvements or increases in housing supply) on other regions, highlighting the key adjustment mechanisms and their long run implications for incomes, the cost of living, and the spatial distribution of population. Our general approach provides a framework encompassing both the New Economic Geography and Urban Systems literatures. We link our approach to these literatures and review empirical studies that quantify the key mechanisms that we have identified.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6786.

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Date of creation: Apr 2008
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Handle: RePEc:cpr:ceprdp:6786

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Related research
Keywords: New Economic Geography; Spatial linkages; Urban and regional policy; Urban systems;

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Find related papers by JEL classification:
R00 - Urban, Rural, and Regional Economics - - General - - - General
R58 - Urban, Rural, and Regional Economics - - Regional Government Analysis - - - Regional Development Policy

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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Jean-Baptiste Michau, 2007. "Creative Destruction with On-the-Job Search," CEP Discussion Papers dp0835, Centre for Economic Performance, LSE. [Downloadable!]
  2. Shilpi, Forhad, 2008. "Migration, sorting and regional inequality : evidence from Bangladesh," Policy Research Working Paper Series 4616, The World Bank. [Downloadable!]
  3. Miklos Koren & Silvana Tenreyro, 2007. "Technological Diversification," CEP Discussion Papers dp0824, Centre for Economic Performance, LSE. [Downloadable!]
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  4. Andrew E. Clark & Ed Diener & Yannis Georgellis & Richard E. Lucas, 2007. "Lags and Leads in Life Satisfaction: A Test of the Baseline Hypothesis," CEP Discussion Papers dp0836, Centre for Economic Performance, LSE. [Downloadable!]
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  5. Luis Araujo & Emanuel Ornelas, 2007. "Trust-Based Trade," CEP Discussion Papers dp0820, Centre for Economic Performance, LSE. [Downloadable!]
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  6. David Clark & Martin Knapp & Richard Layard & Guy Mayraz, 2007. "Cost-Benefit Analysis of Psychological Therapy," CEP Discussion Papers dp0829, Centre for Economic Performance, LSE. [Downloadable!]
  7. Eran Yashiv, 2007. "The Beveridge Curve," CEP Discussion Papers dp0807, Centre for Economic Performance, LSE. [Downloadable!]
  8. Steven Brakman & Harry Garretsen & Charles van Marrewijk, 2009. "Economic Geography within and between European Nations: The Role of Market Potential and Density across Space and Time," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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  9. Espen R. Moen & A Rosen, 2007. "Incentives in Competitive Search Equilibrium," CEP Discussion Papers dp0832, Centre for Economic Performance, LSE. [Downloadable!]
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