Much of the current policy and scientific debate regarding territorial development focuses on territorial competition, which is a result of the outspread of competition (the centerpiece in classical and neoclassical political economy) over many aspects of other disciplines except economics,...

This paper studies how the strength of social ties are affected by the geographical location of other individuals and their social capital. We characterize the equilibrium in terms of both social interactions and social capital. We show that lower travel costs increase not only the interaction...