Iceberg transport costs are one of the main ingredients of modern trade and economic geography models: transport costs are modelled by assuming that a fraction of the goods shipped "melts in transit". In this paper, we investigate whether the iceberg assumption applies to the costs of...

China's Hukou system poses severe restrictions on labor mobility. This paper assesses the consequences of relaxing these restrictions for China's internal economic geography. We base our analysis on a new economic geography model. First, we obtain estimates of the important model parameters on...

Sub-Saharan Africa's (SSA) physical geography is often blamed for its poor economic performance. A country's geographical location does, however, not only determine its agricultural conditions or disease environment. It also pins down a country's relative position vis-à-vis other countries,...