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Spontaneous Orders and the Emergence of Economically Powerful Cities

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  • Palmberg, Johanna

    ()
    (Entrepreneurship Forum, CESIS, KTH)

Abstract

The importance of cities to economic dynamism and growth cannot be emphasized enough. It is crucial for our understanding of what drives economic growth to understand how cities emerge, develop and prosper. This paper investigates the emergence of cities from a spontaneous order and urban economics perspective. The analysis focus on agglomeration effects, externalities and regional clustering as explanations of cities and regional growth. Factors such as local knowledge and dispersion of knowledge are identified as important growth factors. With origin in Hayek’s famous citation “particular circumstances of time and place” these factors are thoroughly discussed in a spontaneous order framework.

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Bibliographic Info

Paper provided by Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies in its series Working Paper Series in Economics and Institutions of Innovation with number 310.

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Length: 23 pages
Date of creation: 24 May 2013
Date of revision:
Handle: RePEc:hhs:cesisp:0310

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Postal: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, SE-100 44 Stockholm, Sweden
Phone: +46 8 790 95 63
Web page: http://www.infra.kth.se/cesis/
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Keywords: Spontaneous orders; cities; urban economics; dynamic externalities; knowledge-flows;

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