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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...
Persistent link: https://www.econbiz.de/10013087411
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...
Persistent link: https://www.econbiz.de/10009697548
This paper shows that subsidy competition may be efficiency enhancing. We model a subsidy game among two asymmetric regions in a new trade model, where capital can freely move among regions, but capital rewards are repatriated. We study subsidy competition, starting from an equilibrium where the...
Persistent link: https://www.econbiz.de/10003820639
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Transportation costs and buyer market power reduce prices and income received by farmers in developing countries. Transportation costs directly affect the marketing margin and also exacerbate market power by limiting farmers' access to buyers. This article develops a multistage spatial model to...
Persistent link: https://www.econbiz.de/10014209096
This paper analyses the impact of unilateral climate policy on firms' international location strategies in emission-intensive sectors, when countries differ in terms of market size. The cases of partial and total relocation via foreign direct investment are separately considered. A simple...
Persistent link: https://www.econbiz.de/10013137454
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In a circular city model, I consider network design and pricing decisions for asingle fast transport connection that … faces competition from a slower but betteraccessible transport mode. To access the fast transport network individuals haveto …
Persistent link: https://www.econbiz.de/10011333275