Showing 1 - 10 of 10
We study the impact of falling trade costs and falling national transport costs on the economic geography of countries involved in an integration process. Two regions between which labour is mobile form each country, but there is no international factor mobility. Commodities can be traded both...
Persistent link: https://www.econbiz.de/10005667127
This paper exploits the division of Germany after the Second World War and the reunification of East and West Germany in 1990 as a natural experiment to provide evidence of the importance of market access for economic development. In line with a standard new economic geography model, we find...
Persistent link: https://www.econbiz.de/10005666492
deregulation of the transport sector leads to more inefficient agglomeration. This latter change may, quite surprisingly, increase …
Persistent link: https://www.econbiz.de/10005791947
A central prediction of a large class of theoretical models is that industry location is not necessarily uniquely determined by fundamentals. In these models, historical accident or expectations determine which of several steady-state locations is selected. Despite the theoretical prominence of...
Persistent link: https://www.econbiz.de/10005792403
We distill the main insights from recent trade models on firms' responses to globalisation. Our primary aim is to assess the economic impact and the welfare implications of the resulting reallocation of resources across firms and countries. In so doing, we bring theory into life through the...
Persistent link: https://www.econbiz.de/10005136703
We extend the model by Krugman (1980) to a multi-country set-up and show that the ‘home-market effect’ highlighted with two countries does not readily extend to such a general setting. In particular, we prove that the most important result, namely the disproportionate causation from demand...
Persistent link: https://www.econbiz.de/10005114440
agglomeration economies. This paper provides a microeconomically founded model of vertical city differentiation in which the latter … two mechanisms (`agglomeration' and `selection') operate simultaneously. Our model is both rich and tractable enough to …
Persistent link: https://www.econbiz.de/10005792517
into large cities, because large cities select more productive entrepreneurs and firms, or because of agglomeration … between them. The model can replicate stylised facts about sorting, agglomeration, and selection in cities. It can also …
Persistent link: https://www.econbiz.de/10008554236
This paper develops a quantitative model of internal city structure that features agglomeration and dispersion forces … estimate agglomeration and dispersion forces, we use data on thousands of city blocks in Berlin for 1936, 1986 and 2006 and … residential externalities. We show that the model with the estimated agglomeration parameters can account both qualitatively and …
Persistent link: https://www.econbiz.de/10011083978
This chapter surveys recent developments in agglomeration theory within a unifying framework. We highlight how … locational fundamentals, agglomeration economies, the spatial sorting of heterogeneous agents, and selection effects affect the …
Persistent link: https://www.econbiz.de/10011084057