Leppälä, Samuli; Desrochers, Pierre - In: Journal of Economic Behavior & Organization 74 (2010) 1-2, pp. 137-147
The regional specialization of economic activities is generally deemed desirable for three reasons: (1) the law of comparative advantage; (2) localized economies of scale; and (3) knowledge spillovers. Taking a methodological individualist perspective, we claim that: (1) the law of comparative...