Economic Linkages Across Space

40 Pages Posted: 12 Jun 2008

See all articles by Henry G. Overman

Henry G. Overman

London School of Economics (LSE) - Department of Geography and Environment; Centre for Economic Policy Research (CEPR)

Patricia Rice

University of Southampton - Division of Economics

Anthony J. Venables

University of Oxford; Centre for Economic Policy Research (CEPR)

Date Written: April 2008

Abstract

We develop a diagrammatic framework that can be used to study the economic linkages between regions or cities. Hitherto, such linkages have not been the primary focus of either the theoretical or empirical literatures. We use the framework to analyse the impact of shocks that occur in one region (eg productivity improvements or increases in housing supply) on other regions, highlighting the key adjustment mechanisms and their long run implications for incomes, the cost of living, and the spatial distribution of population. Our general approach provides a framework encompassing both the New Economic Geography and Urban Systems literatures. We link our approach to these literatures and review empirical studies that quantify the key mechanisms that we have identified.

Keywords: New Economic Geography, Spatial linkages, Urban and regional policy, Urban systems

JEL Classification: R00, R58

Suggested Citation

Overman, Henry G. and Rice, Patricia and Venables, Anthony J., Economic Linkages Across Space (April 2008). , Vol. , pp. -, 2008. Available at SSRN: https://ssrn.com/abstract=1142168

Henry G. Overman (Contact Author)

London School of Economics (LSE) - Department of Geography and Environment ( email )

Houghton Street
London, WC2A 2AE
United Kingdom
+44 20 7955 6581 (Phone)
+44 20 7955 7412 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Patricia Rice

University of Southampton - Division of Economics ( email )

Southampton, SO17 1BJ
United Kingdom
44 23 8059 3847 (Phone)
44 23 8059 3858 (Fax)

Anthony J. Venables

University of Oxford ( email )

Mansfield Road
Oxford, Oxfordshire OX1 4AU
United Kingdom

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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