A neoclassical model of local growth is developed by integrating the static equilibrium underlying compensating differential theory as the long run steady state of a Ramsey-Cass-Koopmans growth model. Numerical results show that even very small frictions to both labor and capital mobility along...

U.S. economic activity is overwhelmingly concentrated at its ocean and Great Lakes coasts, reflecting a large contribution from coastal proximity to productivity and quality of life. Extensively controlling for correlated natural attributes and initial conditions decisively rejects that the...

A neoclassical model of local growth is developed by integrating the static equilibrium underlying compensating differential theory as the steady state of a neoclassical growth model. Numerical results show that even very small frictions to labor and capital mobility along with small changes in...