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The Competitive Paradigm in Spatial Economics

Listed author(s):
  • Jacques-Francois Thisse

    ()

    (National Research University Higher School of Economics
    Catholic University of Louvain)

This paper discusses the reasons for the spatial impossibility theorem, which states that the competitive paradigm cannot explain the formation of large urban agglomerations and trade ows. This result is especially meaningful insofar as it is internal to the theory itself. We then briey explores dierent solutions to remedy to this methodological failure.

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File URL: https://www.hse.ru/data/2016/09/27/1122371753/151EC2016.pdf
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Paper provided by National Research University Higher School of Economics in its series HSE Working papers with number WP BRP 151/EC/2016.

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Length: 17 pages
Date of creation: 2016
Publication status: Published in WP BRP Series: Economics / EC, September 2016, pages 1-17
Handle: RePEc:hig:wpaper:151/ec/2016
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  1. Rebecca Diamond, 2016. "The Determinants and Welfare Implications of US Workers' Diverging Location Choices by Skill: 1980-2000," American Economic Review, American Economic Association, vol. 106(3), pages 479-524, March.
  2. Jan Eeckhout & Roberto Pinheiro & Kurt Schmidheiny, 2014. "Spatial Sorting," Journal of Political Economy, University of Chicago Press, vol. 122(3), pages 554-620.
  3. Kristian Behrens & Gilles Duranton & Frédéric Robert-Nicoud, 2014. "Productive Cities: Sorting, Selection, and Agglomeration," Journal of Political Economy, University of Chicago Press, vol. 122(3), pages 507-553.
  4. Arvind Panagariya, 1998. "Do transport costs justifyregional preferential trading arrangements? no," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 134(2), pages 280-301, June.
  5. Miren Lafourcade & Jacques-François Thisse, 2011. "New Economic Geography: The Role of Transport Costs," Chapters,in: A Handbook of Transport Economics, chapter 4 Edward Elgar Publishing.
  6. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
  7. Samuelson, Paul A, 1983. "Thunen at Two Hundred," Journal of Economic Literature, American Economic Association, vol. 21(4), pages 1468-1488, December.
  8. Hamilton, Bruce W., 1980. "Indivisibilities and interplant transportation cost: Do they cause market breakdown?," Journal of Urban Economics, Elsevier, vol. 7(1), pages 31-41, January.
  9. Redding, Stephen J., 2016. "Goods trade, factor mobility and welfare," Journal of International Economics, Elsevier, vol. 101(C), pages 148-167.
  10. Edward E. Leamer, 2007. "A Flat World, a Level Playing Field, a Small World After All, or None of the Above? A Review of Thomas L Friedman's The World is Flat," Journal of Economic Literature, American Economic Association, vol. 45(1), pages 83-126, March.
  11. James E. Anderson, 2011. "The Gravity Model," Annual Review of Economics, Annual Reviews, vol. 3(1), pages 133-160, September.
  12. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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