Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/86526
Authors: 
van Marrewijk, Charles
Year of Publication: 
2005
Series/Report no.: 
Tinbergen Institute Discussion Paper 05-100/2
Abstract: 
We derive and discuss a general, but simple geographical economics model with congestion, allowing us to explain the economic viability of small and large locations. The model generalizes some previous work and lends itself to analyzing the impact of public policy in terms of infrastructure changes. We show analytically that scale effects (total size of the economy) and changes in the cost structure (fixed and marginal costs) are important from a welfare perspective, but largely irrelevant from an economic dynamics perspective.
Subjects: 
Geographical economics
congestion
externalities
JEL: 
F
O
R
Document Type: 
Working Paper

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