Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/69472
Authors: 
Behrens, Kristian
Mion, Giordano
Murata, Yasusada
Suedekum, Jens
Year of Publication: 
2013
Series/Report no.: 
Discussion Paper Series, Forschungsinstitut zur Zukunft der Arbeit 7175
Abstract: 
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 different levels: Do spatial frictions matter for the city-size distribution? Do they affect individual city sizes? Do they contribute to the productivity advantage of large cities and the toughness of competition in cities? The short answers are: no; yes; and it depends.
Subjects: 
trade frictions
urban frictions
city-size distribution
productivity
markups
JEL: 
F12
R12
Document Type: 
Working Paper

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