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What Future for History Dependence in Spatial Economics?

Author

Listed:
  • Jeffrey Lin
  • Ferdinand Rauch

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?," Economics Series Working Papers 929, University of Oxford, Department of Economics.
    • Handle: RePEc:oxf:wpaper:929
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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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