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Spatial frictions

Listed author(s):
  • Behrens, Kristian
  • Mion, Giordano
  • Murata, Yasusada
  • Suedekum, Jens

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 multi-city general equilibrium model 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 toughness of competition in cities? The short answers are: no; yes; and it depends.

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File URL: http://www.sciencedirect.com/science/article/pii/S0094119016300687
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Article provided by Elsevier in its journal Journal of Urban Economics.

Volume (Year): 97 (2017)
Issue (Month): C ()
Pages: 40-70

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Handle: RePEc:eee:juecon:v:97:y:2017:i:c:p:40-70
DOI: 10.1016/j.jue.2016.11.003
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622905

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