Behrens, Kristian; Mion, Giordano; Murata, Yasusada; … - Centre for Economic Performance, LSE - 2011
The world is replete with spatial frictions. Shipping goods across cities entails trade frictions. Commuting within cities causes urban frictions. How important are these frictions in shaping the spatial economy? We develop and quantify a novel framework to address this question at three...