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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.

Suggested Citation

  • Palmberg, Johanna, 2013. "Spontaneous Orders and the Emergence of Economically Powerful Cities," Working Paper Series in Economics and Institutions of Innovation 310, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    • Handle: RePEc:hhs:cesisp:0310
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    Cited by:

    1. Sang Rim Choi & Daekeun Park & Adrian E. Tschoegl, 2016. "Banks and the World’s Major Banking Centers, 2010," Global Economy Journal (GEJ), World Scientific Publishing Co. Pte. Ltd., vol. 16(2), pages 275-291, June.

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    More about this item

    Keywords

    Spontaneous orders; cities; urban economics; dynamic externalities; knowledge-flows;
    All these keywords.

    JEL classification:

    • B25 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Historical; Institutional; Evolutionary; Austrian; Stockholm School
    • B53 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Austrian
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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