Quantitative spatial economics

Redding, Stephen J. and Rossi-Hansberg, Esteban (2016) Quantitative spatial economics. CEP discussion paper (CEPDP1452). Centre for Economic Performance (CEP), London, UK.

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Abstract

The observed uneven distribution of economic activity across space is influenced by variation in exogenous geographical characteristics and endogenous interactions between agents in goods and factor markets. Until recently, the theoretical literature on economic geography had focused on stylized settings that could not easily be taken to the data. This paper reviews more recent research that has developed quantitative models of economic geography. These models are rich enough to speak to first-order features of the data, such as many heterogenous locations and gravity equation relationships for trade and commuting. Yet at the same time these models are sufficiently tractable to undertake realistic counterfactuals exercises to study the effect of changes in amenities, productivity, and public policy interventions such as transport infrastructure investments. We provide an extensive taxonomy of the different building blocks of these quantitative spatial models and discuss their main properties and quantification.

Item Type:	Monograph (Discussion Paper)
Official URL:	http://cep.lse.ac.uk/
Additional Information:	© 2016 The Authors
Divisions:	Centre for Economic Performance
Subjects:	H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HF Commerce
JEL classification:	F - International Economics > F1 - Trade > F10 - General F - International Economics > F1 - Trade > F14 - Country and Industry Studies of Trade R - Urban, Rural, and Regional Economics > R1 - General Regional Economics > R12 - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade R - Urban, Rural, and Regional Economics > R2 - Household Analysis > R23 - Regional Migration; Regional Labor Markets; Population R - Urban, Rural, and Regional Economics > R4 - Transportation Systems > R41 - Transportation: Demand, Supply, and Congestion; Safety and Accidents; Transportation Noise
Date Deposited:	26 Jan 2017 14:16
Last Modified:	13 Sep 2024 20:36
Projects:	CEP Trade Programme
Funders:	Economic and Social Research Council
URI:	http://eprints.lse.ac.uk/id/eprint/69020

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