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We present a theory of spatial development. A continuum of locations in a geographic area choose each period how much to innovate (if at all) in manufacturing and services. Locations can trade subject to transport costs and technology diffuses spatially across locations. The result is an...
Persistent link: https://www.econbiz.de/10008566320
must then become larger to break even, which facilitates amortizing the fixed costs of innovation. We demonstrate our …
Persistent link: https://www.econbiz.de/10005041097