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What Future for History Dependence in Spatial Economics?

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Abstract

History (sometimes) matters for the location and sizes of cities and neighborhood segregation patterns within cities. Together with evidence on rapid neighborhood change and self-fulfilling expectations, this implies that nature might not completely determine the spatial structure of the economy. Instead, the spatial economy might be characterized by multiple equilibria or multiple steady-state equilibrium paths, where history and expectations can play decisive roles. Better evidence on the conditions under which history matters can help improve theory and policy analysis.

Suggested Citation

  • Jeffrey Lin & Ferdinand Rauch, 2020. "What Future for History Dependence in Spatial Economics?," Working Papers 20-47, Federal Reserve Bank of Philadelphia.
  • Handle: RePEc:fip:fedpwp:89140
    DOI: 10.21799/frbp.wp.2020.47
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    2. Bartels, Charlotte & Jäger, Simon & Obergruber, Natalie, 2020. "Long-Term Effects of Equal Sharing: Evidence from Inheritance Rules for Land," IZA Discussion Papers 13665, Institute of Labor Economics (IZA).
    3. Muscatelli, Anton & Roy, Graeme & Trew, Alex, 2022. "Persistent States: Lessons For Scottish Devolution And Independence," National Institute Economic Review, National Institute of Economic and Social Research, vol. 260, pages 51-63, May.
    4. Gan Jin & Günther G. Schulze, 2024. "Historical Legacies and Urbanization: Evidence from Chinese Concessions," Discussion Paper Series 47 JEL Classification: N9, Department of International Economic Policy, University of Freiburg, revised Feb 2024.
    5. Hanlon, W.Walker & Heblich, Stephan, 2022. "History and urban economics," Regional Science and Urban Economics, Elsevier, vol. 94(C).
    6. Atsushi Yamagishi & Yasuhiro Sato, 2022. "Measuring Discrimination in Spatial Equilibrium: 100 Years of Japan's Invisible Race," CIRJE F-Series CIRJE-F-1188, CIRJE, Faculty of Economics, University of Tokyo.
    7. Lindgren, Erik & Pettersson-Lidbom, Per & Tyrefors, Björn, 2021. "The Causal Effect of Transport Infrastructure: Evidence from a New Historical Database," Working Paper Series 1407, Research Institute of Industrial Economics.
    8. Allen, Treb & Donaldson, Dave, 2022. "Persistence and path dependence: A primer," Regional Science and Urban Economics, Elsevier, vol. 94(C).
    9. Marius Klein & Ferdinand Rauch, 2023. "Market Access and the Arrow of Time," CESifo Working Paper Series 10279, CESifo.
    10. Muscatelli, Anton & Roy, Graeme & Trew, Alex, 2022. "Persistent States: Lessons For Scottish Devolution And Independence," National Institute Economic Review, National Institute of Economic and Social Research, vol. 260, pages 51-63, May.
    11. Dávid Krisztián Nagy, 2021. "Quantitative Economic Geography Meets History: Questions, Answers and Challenges," Working Papers 1249, Barcelona School of Economics.
    12. Nagy, Dávid Krisztián, 2022. "Quantitative economic geography meets history: Questions, answers and challenges," Regional Science and Urban Economics, Elsevier, vol. 94(C).
    13. David Krisztián Nagy, 2020. "Quantitative economic geography meets history: Questions, answers and challenges," Economics Working Papers 1774, Department of Economics and Business, Universitat Pompeu Fabra, revised Mar 2021.

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    JEL classification:

    • N9 - Economic History - - Regional and Urban History
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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