We study the effect of spatial inequality on economic activity. Given that the relationship is highly simultaneous in nature, we use exogenous variation in geographic features to construct an instrument for spatial inequality, which is independent from any man-made factors. Inequality measures...

This paper studies how information and communication technology (ICT) affects the firm geographic organization and its implications on aggregate efficiency. ICT can widen firms' geographic span of control by reducing their internal communication costs. Empirical evidence from confidential US...