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This chapter surveys the theoretical and empirical literature on the relationship between the spatial distribution of economic activity and transportation costs. We develop a multiregion model of economic geography that we use to understand the general equilibrium implications of transportation...
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This paper examines the impact of highway expansion on aggregate productivity growth and sectoral reallocation between … and indirect impact of trade costs on city productivity. I then construct an instrumental variable to examine the causal … productivity growth by facilitating firm entry, exit and reallocation. I also find evidence that the national highway system led to …
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