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Spatial frictions

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

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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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 8572.

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Date of creation: Sep 2011
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Handle: RePEc:cpr:ceprdp:8572

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

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Cited by:
  1. Holger Breinlich & Gianmarco I.P. Ottaviano & Jonathan R.W. Temple, 2013. "Regional growth and regional decline," Economics Discussion Papers 729, University of Essex, Department of Economics.
  2. Ottaviano, Gianmarco, 2012. "Agglomeration,Trade and Selection," CEPR Discussion Papers 9046, C.E.P.R. Discussion Papers.
  3. Kristian Behrens & Giordano Mion & Yasusada Murata & Jens Südekum, 2009. "Trade, Wages and Productivity," SERC Discussion Papers 0029, Spatial Economics Research Centre, LSE.

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