In this paper we use data on Spanish cities between 2006 and 2015 to study the Spanish urban system applying the model in Desmet and Rossi-Hansberg (2013). We decompose the determinants of the Spanish city size distribution into three main components: efficiency, amenities, and frictions. In the...

We depict an industrial district as a center of innovation where positive local spillovers sustain the endogenous invention of new goods by profit-seeking firms. After invention, firms face a crucial choice between reaching distant markets by export or plant delocation. Attempts by firms to...

The US-Mexico free-trade debate included some theoretical assertions that were then used as arguments against trade and investment liberalization. (1) Trade liberalization increases the degree to which production is internationally relocated in response to environmental restrictions...