On Spatial Dynamics Articles uri icon

authors

  • DESMET, KLAUS
  • ROSSI HANSBERG, ESTEBAN ALEJANDRO

publication date

  • March 2010

start page

  • 43

end page

  • 63

issue

  • 1

volume

  • 50

International Standard Serial Number (ISSN)

  • 0022-4146

Electronic International Standard Serial Number (EISSN)

  • 1467-9787

abstract

  • It has long been recognized that the forces that lead to the agglomeration of economic activity and to aggregate growth are similar. Unfortunately, few formal frameworks have been advanced to explore this
    link. We critically discuss the literature and present a simple
    framework that can circumvent some of the main obstacles we identify.We
    discuss the main characteristics of an equilibrium allocation in this
    dynamic spatial framework, present a numerical example to illustrate the
    forces at work, and provide some supporting empirical evidence.