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General Geographical Economics Model with Congestion Author info | Abstract | Publisher info | Download info | Related research | Statistics Charles van Marrewijk () (Faculty of Economics, Erasmus Universiteit Rotterdam)
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We derive and discuss a general, but simple geographical economics model with congestion, allowing us to explain the economic viability of small and large locations. The model generalizes some previous work and lends itself to analyzing the impact of public policy in terms of infrastructure changes. We show analytically that scale effects (total size of the economy) and changes in the cost structure (fixed and marginal costs) are important from a welfare perspective, but largely irrelevant from an economic dynamics perspective.
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Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number
05-100/2.
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Date of creation: 31 Oct 2005Date of revision:
Handle: RePEc:dgr:uvatin:20050100Contact details of provider: Web page: http://www.tinbergen.nl/
For technical questions regarding this item, or to correct its listing, contact: (Walther Schoonenberg).
Keywords: Geographical economics congestion externalities Find related papers by JEL classification: F - International Economics O - Economic Development, Technological Change, and Growth R - Urban, Rural, and Regional Economics
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References listed on IDEAS 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.: J. Peter Neary, 2001.
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"Increasing Returns and Economic Geography ,"
Journal of Political Economy ,
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